• DeepSeek is reportedly speeding up plans for a mainland Chinese IPO, likely on Shanghai’s STAR Market, while raising approximately 100 billion yuan ($15 billion) in a private round.
  • The financing target has more than doubled from earlier reports, with Tencent (0700.HK) and CATL (300750.SZ) among the largest investors, though sources differ on whether the round has closed.
  • The AI developer has hired CITIC Securities (600030.SS) and plans to appoint its first CFO, Yan Wentao, as it transitions from a founder-financed lab to a public-market contender.

DeepSeek Picks Up the Pace Toward Public Markets

Hangzhou-based artificial intelligence developer DeepSeek is accelerating preparations for a mainland Chinese initial public offering, according to people familiar with the matter, as it simultaneously wraps up a private fundraising that has grown to roughly 100 billion yuan ($15 billion). The company is leaning toward listing on Shanghai’s technology-focused STAR Market, with earlier reporting pointing to a possible filing in late 2026 and a public debut in 2027—though these plans remain tentative and subject to change.

The latest fundraising round has expanded sharply, with the target reportedly climbing from 50 billion yuan to 80 billion yuan and then to approximately 100 billion yuan. Tencent and battery manufacturer CATL are said to be among the largest investors. However, reports differ on whether the round has formally closed: Bloomberg describes the money as raised, while a Reuters (TRI)-distributed account says completion is expected in the coming days and terms could still shift. The private fundraising is separate from any eventual IPO proceeds.

Building Out the Infrastructure

DeepSeek’s push toward public markets has become more concrete in recent weeks. The company hired CITIC Securities in September to prepare for a potential STAR Market offering, Reuters reported. Earlier reporting envisaged completing financial statements around December, with the filing timeline dependent on that work. Reuters also reported on September 14 that DeepSeek planned to bring on Yan Wentao, a partner at Hillhouse’s venture-capital arm GL Ventures, as its first chief financial officer—a planned appointment rather than a company-confirmed start date.

The move marks a significant organizational shift for a company that began in 2023 under the control of Liang Wenfeng and was initially financed through his quantitative hedge fund, High-Flyer. DeepSeek gained global attention in January 2025 when its R1 model demonstrated strong performance at what the company claimed were substantially lower development costs than leading US systems. Since then, it has evolved into a multibillion-dollar, heavily financed AI player, with annualized revenue reportedly reaching $1 billion by late September, more than double the level a few months earlier, according to The Information.

Eyes on the Valuation

Reuters reporting pegs DeepSeek’s pre-money valuation at approximately 500 billion yuan, a figure that would make it one of China’s most valuable private technology companies. That valuation does not reflect an IPO price. The company previously raised about $7.4 billion in June at a post-money valuation exceeding $50 billion.

A listing on the STAR Market would test domestic investor appetite for frontier AI and give DeepSeek another avenue to finance expensive computing capacity. The company has been ramping up spending on data centers, semiconductors, and talent, and Reuters Breakingviews has argued that DeepSeek’s financing needs expose limits in China’s available capital pool, with even large backers facing competing AI investments.

Regulatory and Geopolitical Hurdles

DeepSeek’s IPO preparations come amid heightened international scrutiny of its data-handling practices. Reuters has documented concerns over the company’s policy of storing user prompts and uploaded files on computers in China. Australia has barred DeepSeek from government devices, and other jurisdictions have imposed restrictions or opened investigations. These measures vary by country and do not constitute a universal consumer ban, but they underscore the commercial hurdles beyond model performance.

Domestically, the listing process will require audited financial statements, governance upgrades, and disclosures—precisely the areas the proposed CFO appointment aims to address. Hiring advisers does not itself guarantee regulatory approval.

A DeepSeek spokesperson did not respond to a request for comment on the IPO timeline or the fundraising status.

Correction: An earlier version of this article misstated the month of the Reuters report on DeepSeek’s CFO plans. It was September 14, not September 4.