DeepSeek taps CITIC Securities for potential Shanghai IPO as AI funding race intensifies

Chinese artificial intelligence startup DeepSeek has hired CITIC Securities to prepare for a potential initial public offering on Shanghai’s technology-focused STAR Market. According to sources familiar with the matter, the AI developer is seeking fresh capital to expand computing infrastructure and retain talent.

The Hangzhou-based startup aims to begin the IPO process this year. DeepSeek’s engagement of CITIC Securities has not previously been reported and indicates that the company is moving forward with preparations for a mainland China listing. The timing of any offering, the amount DeepSeek could raise, and its potential valuation have not been determined, the sources said.

The potential IPO comes as DeepSeek seeks additional funding to finance the rapid expansion of its computing infrastructure, develop new AI models, and compete for researchers in an expensive global AI market. The company is currently in the middle of a funding round valuing it at 500 billion yuan ($75 billion), after raising about $7.4 billion in June.

The IPO preparations highlight a wave of AI companies seeking access to public capital. Chinese AI developers Z.AI and MiniMax both listed in Hong Kong earlier this year, while Moonshot AI has confidentially filed for a Hong Kong IPO. However, the Chinese companies’ valuations remain significantly below those being discussed for major U.S. AI developers.

DeepSeek’s need for capital also extends to employee retention, with proceeds from a potential IPO expected to allow the company to offer stronger incentives to researchers. The startup has recently lost talent to better-funded Chinese technology companies, including ByteDance and Xiaomi.