Chinese AI Firm DeepSeek Plans $71 Billion Fundraising Ahead of Shanghai IPO

Chinese artificial intelligence company DeepSeek is preparing for a new funding round at a valuation of $71 billion, just weeks after completing a previous $7.4 billion raise at a $50 billion valuation. The company, which shocked the global AI market in January 2025 by launching a cost-effective model rivaling Western counterparts, is also gearing up for an initial public offering (IPO) on the Shanghai Stock Exchange in the second quarter of 2027.

DeepSeek's CEO and founder, Liang Wenfeng, had traditionally relied on his own capital and avoided fundraising, but shifted strategy in April following breakthroughs by competitors like Anthropic. In a May investor presentation, Liang warned that without sufficient funds to hire top talent and expand computing infrastructure, the company risked losing momentum. Since last month’s funding round, DeepSeek has aggressively recruited to double its workforce across departments.

According to the Wall Street Journal, DeepSeek is in talks with investment banks and investors to finalize its IPO plans, aiming to submit its prospectus by the end of this year. The Chinese regulator recently eased listing rules on the Shanghai exchange, allowing unprofitable companies to go public, which benefits DeepSeek’s IPO timeline. However, the schedule remains subject to regulatory approval. The company has not commented on these reports.