Chinese AI firm DeepSeek taps underwriters including Citic Securities for IPO: sources

The move by DeepSeek to pursue an IPO on the Star market, with a pre-IPO valuation potentially reaching US$74 billion, reflects the intense capital demand and investor confidence in China’s frontier AI sector. This valuation, if realized, would position DeepSeek as a significant player in the domestic AI landscape, attracting further attention to the Shanghai Stock Exchange as a listing venue for high-growth tech companies. However, the rapid succession of high-valuation IPOs from Chinese AI developers, including Moonshot's reported US$50 billion pre-IPO target, raises questions about market absorption and the sustainability of these valuations. The key watch point for investors will be DeepSeek's ability to demonstrate clear revenue models and competitive differentiation beyond its current R&D capabilities, especially as more Chinese AI firms vie for public funding.