Chinese AI startup DeepSeek has tapped CITIC Securities to prepare for an initial public offering on Shanghai’s tech-focused STAR Market, two people with knowledge of the matter told Reuters on Wednesday. The Hangzhou-based company aims to begin the listing process this year, the people said, speaking on condition of anonymity because the discussions are private.
Engaging a securities firm for pre-listing tutoring is a standard step before a mainland China application. The timing of a potential offering, how much DeepSeek could raise, and its target valuation have not been determined, the people said. DeepSeek and CITIC did not immediately respond to Reuters requests for comment.
The move comes as DeepSeek seeks fresh capital for computing infrastructure, model development, and talent. Reuters has previously reported the company is in a funding round that would value it at about 500 billion yuan ($75 billion). It raised about $7.4 billion in June at a post-money valuation of more than $50 billion, according to sources and investor filings cited by Reuters.
Founder Liang Wenfeng hopes IPO proceeds will help DeepSeek offer stronger incentives to retain researchers, another source told Reuters, as the firm has lost talent to better-funded rivals including ByteDance and Xiaomi. In the June round, Reuters said Liang personally committed 20 billion yuan, with Tencent and CATL among the largest external shareholders. The company is also spending more on computing capacity and in-house chips while competition intensifies among leading Chinese and U.S. AI labs.