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The DeepSeek logo. / AP-Yonhap

DeepSeek, which shook up China’s artificial intelligence market with its low-cost AI model, is accelerating plans for an initial public offering to bolster its capital base.

DeepSeek has selected CITIC Securities to prepare for an IPO on the STAR Market, the technology-focused board of the Shanghai Stock Exchange, Reuters reported on Sept. 9 local time, citing two people familiar with the matter.

The Hangzhou-based company aims to begin the IPO process this year. Companies seeking to list on mainland Chinese exchanges typically select a brokerage and undergo pre-listing guidance before submitting a formal application.

The sources said the potential timing of the IPO, the amount DeepSeek could raise and its target valuation have yet to be determined.

DeepSeek is pursuing the listing as part of efforts to secure fresh capital for computing infrastructure, AI model development, and recruiting and retaining talent as US-China competition in artificial intelligence intensifies.

Reuters reported in July that DeepSeek was seeking new funding at a target valuation of 500 billion yuan, or about 99.7 trillion won.

According to sources and investor materials, DeepSeek raised about $7.4 billion, or roughly 9.9 trillion won, in June, valuing the company at more than $50 billion, or about 66.9 trillion won, after the investment.

Chinese AI companies are increasingly turning to public markets to finance the massive data center capacity, engineering talent and computing power required to operate and develop their businesses.

Chinese large language model developers Z.AI and MiniMax both listed in Hong Kong earlier this year. Beijing-based AI company Moonshot AI also confidentially filed for a Hong Kong IPO earlier this month.

Moonshot AI was previously valued at $50 billion in a funding round, lower than both DeepSeek and Z.AI. Z.AI’s market capitalization stands at about $54 billion, or roughly 72.3 trillion won.

Those valuations remain well below the levels being discussed for US rivals. Some investors estimate that Anthropic, the developer of Claude, could be valued at as much as $2 trillion in a potential IPO. OpenAI has also been reported to potentially seek a valuation of up to $1 trillion in a future listing.

The gap appears to reflect differences in revenue scale. Chinese AI companies are reportedly struggling to generate profits as they continue to compete aggressively on technology.

DeepSeek also plans to use funds raised through an IPO to provide incentives aimed at retaining key employees after recently losing talent to better-funded rivals such as ByteDance and Xiaomi.

                                                                                                            Kim Hyun-min