DeepSeek in talks to raise $1.5 billion at $71 billion valuation ahead of IPO
Reports indicate the firm, which previously raised $7 billion at a $50 billion valuation, is targeting a 2027 debut, though an earlier listing is possible.
Chinese large language model developer DeepSeek is in discussions to raise approximately $1.5 billion in new funding, according to reports from Bloomberg. The company is seeking to value itself at around $71 billion as it prepares for an initial public offering. While the target for a public listing is set for 2027, reports suggest the debut could occur as early as the end of this year.
The proposed valuation marks a significant increase for the firm, which completed its first-ever external funding round just one month ago. That previous round secured $7 billion at a $50 billion valuation, indicating rapid capital appreciation for the startup founded in 2023. DeepSeek could not be reached for comment regarding the current fundraising talks or the updated valuation figures.
DeepSeek has gained prominence for releasing artificial intelligence technology that is both more efficient and cost-effective than models developed by US-based competitors. This capability has allowed the company to grow exponentially in popularity, challenging top US AI labs with its open-source models despite US export controls on advanced semiconductors.
The company’s cloud infrastructure currently utilises chips manufactured by Huawei Technologies. This reliance on domestic hardware has enabled DeepSeek to maintain operations and scale its services. The firm’s investor base includes major industry players such as Tencent and Beijing’s National Artificial Intelligence Industry Investment Fund.
Market data from enterprise-focused AI gateway Vercel highlights the firm's growing footprint. In June, DeepSeek accounted for nearly 23% of tokens processed on the platform, compared to 32% for Anthropic. This usage metric underscores the competitive position of Chinese open-source models within the global AI landscape.
