Chinese AI Firm DeepSeek Plans Massive IPO as ASML Boosts Chip Machine Production

The artificial intelligence (AI) revolution is driving unprecedented investment across the global tech and semiconductor industries. Chinese AI company DeepSeek, founded in 2023, is preparing for a major initial public offering (IPO) potentially as early as 2027. Bloomberg reports that DeepSeek plans to file its prospectus later this year or early next year after completing required financial reports. Concurrently, the company is seeking to raise at least 10 billion yuan (approximately 71 billion USD) in a private funding round, valuing it at around 480 billion yuan, a significant increase from its previous valuation of about 50 billion USD during a 7 billion USD funding round last month. This earlier round was the largest initial external funding for a Chinese tech firm and included investors such as Tencent, battery maker CATL, and China’s government AI investment fund.

DeepSeek gained attention for developing an advanced AI model reportedly using relatively limited computing resources, challenging U.S. export restrictions on advanced chips. Despite some skepticism about these claims, the company has become a notable player in AI, aiming to use new funds to expand computing infrastructure and develop next-generation AI models and intelligent agents.

Meanwhile, Dutch semiconductor equipment manufacturer ASML, the sole global supplier of advanced lithography machines essential for producing cutting-edge chips, raised its sales forecast for the second time this year. ASML reported Q2 revenues of 9.33 billion euros, a 21% increase year-over-year and above analyst expectations of 8.85 billion euros. Net profit rose 27% to 2.92 billion euros, exceeding forecasts. The company now projects 2026 revenues between 43 and 45 billion euros, up from 40 to 44 billion euros, and expects gross margins of 54% to 56%, up from 51% to 53%. ASML also announced plans to increase production capacity for its EUV lithography machines, with orders already secured through 2028.

ASML CEO Christophe Fouquet highlighted that AI-driven investment surges are accelerating chipmakers’ expansion plans, increasing demand for production equipment. ASML’s machines are critical for chips used in AI accelerators by Nvidia and leading chipmakers like TSMC, Samsung, and Intel. The company is also considering further capacity expansions beyond 2028 due to long-term supply agreements, signaling ongoing shortages of advanced equipment.

These developments illustrate how AI is fueling growth across the entire tech investment chain, from model developers to chip manufacturers and equipment suppliers. However, some market voices question whether the massive capital expenditures, projected to reach 1.4 trillion USD by 2027 among hyperscale companies like Amazon, Microsoft, Google, Meta, and Oracle, will ultimately generate sufficient returns.