Key Takeaways:
China's DeepSeek has engaged CITIC Securities to prepare a Shanghai STAR Market listing, a domestic IPO that capital market professionals project could value the AI startup at 1.5 trillion to 2.5 trillion yuan.
"DeepSeek aims to begin the IPO process this year," two people with knowledge of the matter told Reuters, speaking on condition of anonymity because the discussions are private. Companies seeking a mainland China listing typically appoint securities firms to conduct pre-listing tutoring before filing an application, and neither DeepSeek nor CITIC responded to requests for comment.
The startup is in the midst of a funding round that would value it at 500 billion yuan ($75 billion), Reuters reported in July. It raised about $7.4 billion in June at a post-money valuation of more than $50 billion, with founder Liang Wenfeng personally committing 20 billion yuan while Tencent Holdings and battery maker CATL put in 10 billion yuan and 5 billion yuan, respectively, to become the largest external shareholders.
A listing would give DeepSeek a war chest to fund computing infrastructure, model development and talent retention as it races better-funded U.S. rivals. Anthropic could be valued at up to $2 trillion in its IPO and OpenAI at up to $1 trillion, while Chinese peers Z.AI and MiniMax went public in Hong Kong this year and Moonshot has filed confidentially for a Hong Kong listing.
Funding round reshapes the cap table
The new round, launched in mid-July, brings in SMIC-affiliated investor SMIC Capital, Boyu Capital, CPE and a Hefei state investment platform, while first-round backers Tencent, CATL, IDG Capital, Lisi Capital, Shixiang Capital and Zhenggu Investment added positions. The National AI Industry Investment Fund, the only direct corporate investor in the first round, also plans to participate.
The round adjusts the shareholding structure and lock-up periods to fit STAR Market listing rules. Except for the National AI Industry Investment Fund, first-round investors hold indirect stakes locked for five years; to match listing standards, new investors in this round may see their lock-up shortened to three years as the equity structure is standardized.
Commercialization accelerates as hiring expands
DeepSeek's revenue for the first seven months of 2026 reached 475 million yuan, roughly ten times its full-year 2025 total, though the company still posted a net loss of 715 million yuan over the period. The pace of commercialization comes as the firm grows headcount: on Sept. 7 its Harness team posted 150 openings across server development and agent-computing roles, adding to a workforce of about 300.
The projected 1.5 trillion to 2.5 trillion yuan range would place DeepSeek's post-listing value well above the roughly $54 billion market capitalization of Hong Kong-listed rival Z.AI and the $50 billion valuation Moonshot drew in its latest round. The gap with U.S. peers reflects a sharp revenue disparity, showing the challenge Chinese AI developers face in converting competitive technology into profit.
Founder Liang hopes the IPO proceeds will help DeepSeek offer stronger incentives to retain key staff and researchers, another source said, after the company lost talent to better-funded rivals including ByteDance and Xiaomi. The timing of the offering, the amount DeepSeek could raise and its target valuation have not been determined, the people said.
This article is for informational purposes only and does not constitute investment advice.
