DeepSeek nears $74B valuation in pre-IPO funding round

Chinese artificial intelligence startup DeepSeek is close to completing a new funding round that would value the company at approximately 500 billion yuan ($74 billion) before investment, as the Hangzhou-based firm moves toward a potential public listing on Shanghai's Star Market, according to a report by the South China Morning Post citing people familiar with the matter.scmp

The company is seeking to raise about 50 billion yuan in the round, which is expected to close before the end of August.newsbytesapp+1

Investors Old and New

The funding round features a mix of returning backers and new participants. Existing investors include local venture funds Monolith and Shixiang Capital, as well as Chinese battery giant CATL Contemporary Amperex Technology Co., Limited.scmp+1

New investors in talks include CPE, Legend Capital, and Stony Creek Capital — a semiconductor-focused private equity firm historically linked to Zhu Yiming, chairman of chip giant ChangXin Memory Technologies and founder of memory chip designer GigaDevice. Funds backed by GigaDevice and Hefei state investment vehicles are also involved.indexbox+1

Revenue Surge Bolsters IPO Case

The fundraising comes amid a sharp acceleration in DeepSeek's business. The company reported revenue of 475 million yuan ($70.7 million) for the first seven months of 2026 — roughly ten times its full-year 2025 total, according to figures first reported by The Information. Net losses narrowed to 715 million yuan over the same period, down from 935 million yuan for all of 2025.cryptopolitan

DeepSeek's API access business posted a gross margin of 82.9%, a figure that outpaces American rivals OpenAI and Anthropic on their core products, reflecting the lab's emphasis on computational efficiency.cryptopolitan

Path to a 2027 Market Debut

The capital raise doubles as pre-IPO groundwork. DeepSeek has begun preparations for a listing on Shanghai's Star Market, a Nasdaq-style board, and could file as early as the end of this year, with a public debut targeted for 2027, two sources told the South China Morning Post. The company has reportedly already selected investment banks for the Shanghai listing.newsbytesapp+2

This would be DeepSeek's second major fundraise after a round earlier this year that brought in 50 billion yuan at a valuation above $50 billion. The sources requested anonymity as they were discussing private information.scmp+1