DeepSeek reportedly in talks to raise $1.5B, then IPO
Chinese AI startup DeepSeek is reportedly seeking $1.5 billion in new funding ahead of a potential IPO as early as late 2025. Despite U.S. export restrictions, the company has gained significant market share by offering efficient, cost-effective open-source models.
Why it matters
DeepSeek's rapid growth and ability to compete with U.S. labs despite chip sanctions highlights the shifting landscape of global AI dominance and the resilience of the Chinese tech sector.
DeepSeek , the Chinese large language model developer, is preparing for a 2027 IPO debut, but it could come as early as the en d of this year as it also looks to raise around $1.5 billion in new funds at about a $71 billion valuation, Bloomberg reports . The news comes after the company raised $7 billion in funds just a month ago at around a $50 billion valuation in its first-ever outside funding round.
The China-based startup, founded in 2023, made headlines early last year after releasing AI technology that was both more efficient and more cost-effective than U.S. model makers. It has since grown exponentially in popularity. In June, it accounted for nearly 23% of all the tens of trillions of tokens processed by enterprise-focused AI gateway Vercel, the company reports. This is compared to Anthropic taking 32% of tokens.
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