DeepSeek enters final stage of new funding round ahead of possible IPO

Chinese AI developer DeepSeek is nearing the completion of a new funding round, which values the company at around 500 billion yuan, or $74 billion, before raising new funds.

This is reported by South China Morning Post, citing people familiar with the negotiations. According to them, DeepSeek plans to raise about 50 billion yuan - roughly $7 billion - and expects to complete the round by the end of August.

Among the investors are participants of the previous round, including venture funds Monolith and Shixiang Capital, as well as Chinese battery maker CATL.

In parallel, CPE, Legend Capital, and Stony Creek Capital are in talks to participate. Funds associated with chipmaker GigaDevice and state investment structures of the city of Hefei may also join the round.

DeepSeek prepares for IPO

The new round comes amid DeepSeek's preparations for a possible initial public offering on the Shanghai Star Market, which is focused on technology companies.

According to the publication's sources, the company may submit an IPO application before the end of 2026, and carry out the listing in 2027. 

Plans to raise about 50 billion yuan were known earlier, but now negotiations have neared completion, and sources name a specific pre-investment valuation of the company - about $74 billion.

Based on materials from: South China Morning Post