Chinese artificial intelligence startup DeepSeek has begun preparing for a potential initial public offering while seeking a fresh funding round that could lift its valuation to about $71 billion.
Summary
- DeepSeek is exploring a new funding round that could value the AI startup at $71 billion.
- The company has reportedly begun IPO preparations, with a Chinese listing under consideration.
- DeepSeek is expanding into agentic AI and developing in-house AI chips to support future growth.
According to a report by the Financial Times, DeepSeek has entered early-stage discussions with prospective investors over a new capital raise that could value the company at roughly $71 billion before the latest funding is completed.
The publication also reported that the startup has started laying the groundwork for an IPO, with a domestic Chinese listing currently viewed as the preferred route and a filing possible as early as this year.
The latest fundraising effort follows DeepSeek’s first external financing round completed only weeks ago. As reported by the Financial Times, that transaction valued the company at $7 billion before new capital, resulting in a post-money valuation of around $52 billion.
The fresh discussions indicate investors are willing to assign a substantially higher valuation as competition among leading AI developers continues to intensify.
Investor demand has accelerated DeepSeek’s valuation
DeepSeek has emerged as one of China’s most closely watched AI companies after its large language models gained international attention. The company has increasingly been compared with U.S.-based rivals such as OpenAI and Anthropic, both of which remain among the industry’s largest developers of foundation AI models.
Its IPO preparations also arrive during a period of heightened activity across the AI sector. As previously reported by crypto.news, SpaceX made its public market debut in June, while OpenAI and Anthropic have also filed for initial public offerings, underscoring growing investor interest in companies developing advanced artificial intelligence technologies.
Separately, crypto.news reported that investor appetite for AI-linked companies has remained resilient despite concerns over stretched valuations. Cathie Wood recently expanded ARK Invest’s exposure to SpaceX with a $21.3 million purchase after earlier acquiring approximately $32.5 million worth of shares during the stock’s post-listing decline.
ARK had previously invested about $444.3 million across four exchange-traded funds when SpaceX debuted on Nasdaq on June 12.
Product expansion extends beyond fundraising
Beyond capital raising, DeepSeek is expanding its technology roadmap into agentic AI, a segment focused on systems capable of completing more complex tasks with greater autonomy than conventional prompt-based models. According to the Financial Times, the company has increased its efforts in this area as businesses race to commercialize AI agents for enterprise and consumer applications.
The startup is also working to strengthen control over its computing infrastructure. The Financial Times reported that DeepSeek is developing its own AI chips to reduce dependence on third-party hardware suppliers while supporting the training and deployment of increasingly sophisticated AI models.
Building proprietary chips could also help the company manage infrastructure costs and secure computing capacity as demand for advanced AI services continues to grow.
If the fundraising and listing plans proceed, DeepSeek would join a growing group of AI companies pursuing public markets while investing heavily in proprietary technology.
According to the Financial Times, the combination of fresh capital, infrastructure development and product expansion could position the Chinese startup among the highest-valued AI firms globally as competition with OpenAI, Anthropic and other major developers intensifies.
