DeepSeek Plans First External Fundraising of $300 Million at $10 Billion Valuation as AI Development Pressures Mount

Chinese artificial-intelligence startup DeepSeek has drawn widespread international attention with its open-source, highly cost-efficient AI models. A key company under quantitative hedge fund High-Flyer, DeepSeek is at the forefront of China's challenge to U.S. dominance in AI technology. It is also a barometer of China's progress in developing domestic AI chips and research capabilities. Its listing plans could have far-reaching implications for capital flows and competition in the global generative AI industry.

People familiar with the matter said DeepSeek plans to file for an initial public offering by the end of 2026 and could list in Shanghai as early as the second quarter of 2027. The company was valued at more than $50 billion, or about 350 billion yuan, after its first external funding round. Founder Liang Wenfeng is actively seeking another round at a target valuation of $71 billion, with the proceeds earmarked for expanding computing infrastructure and accelerating development of next-generation models.

DeepSeek, founded by Liang Wenfeng, who has a quantitative-fund background, has quickly emerged as a focal point of China’s AI industry with its low-cost large language models. Amid U.S. chip export controls and China’s push for homegrown AI technology, a valuation above $50 billion would not only make it China’s most valuable AI startup but also reflect investors’ high expectations for domestic foundation models.

As of July 20, 2026, DeepSeek had raised more than $6.7 billion in its first funding round from investors including Tencent, CATL and Chinese state-backed funds. Liang retained control of the company through a special partnership structure. After completing the round, the company immediately announced plans to invest 50 billion yuan in expanding its team, with a focus on developing AI agents and next-generation training models.