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DeepSeek Hires CITIC Securities for IPO, Eyes 500B Yuan Valuation

DeepSeek, the artificial intelligence unicorn that has taken the tech world by storm, is making a bold move toward the public market. According to reports from Reuters and other outlets, the company has officially brought CITIC Securities on board to guide it through the process of listing on Shanghai's Sci-Tech Innovation Board, commonly known as the STAR Market. The goal? To submit an IPO application this year and potentially ring the opening bell as early as next year.

This isn't just another tech IPO—it's a signal that China's AI sector is entering a new phase of maturity. DeepSeek's rapid ascent has been nothing short of remarkable, and its financials reflect that momentum. In the first seven months of 2026 alone, the company generated around 475 million yuan in revenue—a staggering tenfold increase compared to its entire 2025 earnings. That kind of growth doesn't happen by accident; it speaks to a business model that's resonating with customers and scaling fast.

So, where will all that IPO money go? The company has outlined four key areas of investment: beefing up its computing power infrastructure, doubling down on cutting-edge large model research, pushing forward with chip self-development, and creating better incentives for its core R&D talent. In other words, DeepSeek is playing the long game, betting big on the technologies that will define the next decade of AI.

But the road to IPO isn't just about revenue and R&D—it's also about capital. DeepSeek is currently in the middle of a new funding round, with a target valuation that could reach a jaw-dropping 500 billion yuan. That's a massive leap from its June 2026 round, where it raised $7.4 billion (roughly 49.8 billion yuan) and saw its post-money valuation soar past $5 billion (around 336.4 billion yuan).

The investor roster for that June round reads like a who's who of tech and finance. Founder Liang Wenfeng personally poured in about 20 billion yuan, making him the largest single investor. Tencent chipped in around 10 billion yuan, and companies under the CATL group—the battery giant—invested about 5 billion yuan. JD.com, NetEase, IDG Capital, and the National Artificial Intelligence Industry Investment Fund also joined the party. Notably, this round came with a five-year lock-up period, and external investors don't get voting rights. Yet despite those restrictions, demand was so intense that it spilled over into chaos.

Here's where things get interesting. According to the Financial Times, the frenzy around DeepSeek shares has spawned a secondary market for SPVs—special purpose vehicles. Some early investors, eager to cash in on the hype, have set up SPVs to bring in outside money, then marked up the prices in layers. Reports suggest that some outer-layer entities charge initial fees exceeding 15% and take profit shares as high as 40%—far above what's considered normal in the industry. It's a classic case of too much money chasing too few shares.

DeepSeek itself has stayed out of these off-market shenanigans. In fact, founder Liang Wenfeng is taking a hands-on approach to prevent any governance headaches down the line. Sources say he's personally reviewing the final list of investors, digging into the real identities of limited partners behind the SPVs, and making sure that no unknown entities end up holding the company's equity. It's a smart move, especially for a company that wants to keep its shareholder structure clean for a STAR Market listing, where regulators take a dim view of complex, opaque ownership.

For observers, DeepSeek's IPO journey is a test case for how China's AI champions navigate the delicate balance between rapid growth and regulatory scrutiny. The company's technology has already made waves globally, but its success on the capital markets will depend on more than just algorithms—it'll hinge on trust, transparency, and the ability to manage the expectations of a very eager investor base.

As the year unfolds, all eyes will be on DeepSeek's next steps. Will it hit that 500 billion yuan valuation? Can it maintain its explosive growth? And how will it handle the inevitable scrutiny that comes with being a public company? One thing's for sure: this is a story worth watching.

Key Points

  • DeepSeek has hired CITIC Securities to prepare for a STAR Market IPO, aiming to file this year and list next year.
  • The company's revenue hit 475 million yuan in the first seven months of 2026, roughly ten times its 2025 total.
  • IPO proceeds will fund computing infrastructure, large model research, chip development, and R&D talent incentives.
  • A new funding round targets a 500 billion yuan valuation, following a June round that raised $7.4 billion.
  • Off-market SPV trading has raised concerns, prompting founder Liang Wenfeng to personally vet investors to avoid governance issues.