DeepSeek Seeks US$7.4 Billion Pre-IPO Funding as 2027 Star Market Listing Takes Shape
SCMP · 2 SOURCESabout 2 hours ago3 MIN
Summary
DeepSeek, the Hangzhou-based artificial intelligence company that upended the global AI landscape with its cost-effective yet powerful models, is approaching completion of a significant pre-IPO funding round that could value the firm at roughly 500 billion yuan (US$74 billion). The company is seeking to raise approximately 50 billion yuan in this round, with expectations to close before the end of August, according to sources familiar with the matter . DeepSeek has also disclosed that it generated revenue of about 4.75 billion yuan during the first seven months of 2025, representing a ninefold increase compared to its total revenue for all of 2024, while its net loss narrowed to 7.15 billion yuan from 9.35 billion yuan in the previous full year . The AI developer is simultaneously preparing documentation for an initial public offering on Shanghai's Nasdaq-style Star Market, with a potential filing as early as year-end and a public debut targeted for 2027 .
Key Points
- DeepSeek is in advanced negotiations for a pre-IPO funding round targeting 50 billion yuan, with the company's pre-money valuation set at approximately 500 billion yuan (US$74 billion) .
- The Hangzhou-based AI firm generated 4.75 billion yuan in revenue during the first seven months of 2025, a ninefold jump from its full-year 2024 total, while net loss narrowed to 7.15 billion yuan .
- Existing investors including venture funds Monolith and Shixiang Capital, along with battery manufacturer Contemporary Amperex Technology (CATL), are participating in the current round .
- New investors in discussions comprise CPE, Legend Capital, and Stony Creek Capital – a semiconductor-focused private equity firm linked to ChangXin Memory Technologies chairman Zhu Yiming .
- DeepSeek and other major Chinese AI developers including Zhipu AI, Alibaba, Tencent, and Baidu have recently raised their API access prices amid intensifying market competition .
Why It Matters
DeepSeek's rapid ascent from an unknown research lab to a potential US$74 billion AI powerhouse underscores China's growing competitiveness in artificial intelligence on the global stage. The company's IPO ambitions and robust revenue growth trajectory signal that Chinese AI firms are increasingly capable of challenging Western counterparts in developing advanced large language models at a fraction of the cost. The involvement of strategic investors from semiconductors and batteries reflects broader industrial interest in securing AI capabilities that could reshape multiple sectors from cloud computing to electric vehicles.
DeepSeek's rapid ascent from an unknown research lab to a potential US$74 billion AI powerhouse underscores China's growing competitiveness in artificial intelligence on the global stage. The company's IPO ambitions and robust revenue growth trajectory signal that Chinese AI firms are increasingly capable of challenging Western counterparts in developing advanced large language models at a fraction of the cost. The involvement of strategic investors from semiconductors and batteries reflects broader industrial interest in securing AI capabilities that could reshape multiple sectors from cloud computing to electric vehicles.