DeepSeek Seeks $71 Billion Valuation Ahead of 2027 IPO

DeepSeek, a Hangzhou-based artificial intelligence startup, is pursuing a new private funding round with a target pre-money valuation between $71 billion and $74 billion. This follows a record financing round closed in June that raised approximately $7.4 billion at a valuation of roughly $52 billion. Major investors in the previous round included Tencent, CATL, and China's state-backed National Artificial Intelligence Industry Investment Fund.

Parallel to these fundraising efforts, the company is preparing for an initial public offering on the mainland market, likely on the Shanghai Stock Exchange's Star Market. DeepSeek intends to file as early as late 2026 for a target debut in 2027. The company is currently working with banking and accounting advisors to finalize financial reports by December, benefiting from relaxed Shanghai Stock Exchange rules that now allow unprofitable AI developers to list.

Founder Liang Wenfeng maintains control of the firm through a limited partnership structure that restricts the voting rights of outside investors. The company plans to use the new capital to double the size of several departments and expand computing infrastructure to compete with U.S. rivals such as OpenAI and Anthropic. To circumvent U.S. export controls on Nvidia hardware, DeepSeek utilizes Huawei Technologies equipment and is developing its own proprietary AI chips to reduce external reliance.