DeepSeek targets $75 billion valuation ahead of Shanghai IPO

DeepSeek has reported that its annualized revenue run rate has reached $1 billion, more than doubling in recent months. The AI startup is currently preparing for an initial public offering (IPO) on the Shanghai Stock Exchange, specifically targeting the STAR Market.

CEO Liang Wenfeng has indicated a target valuation of 500 billion yuan (approximately $75 billion) and aims to raise roughly 50 billion yuan (approximately $7.5 billion) through the offering. CITIC Securities has reportedly been tasked with facilitating the listing process.

The company’s revenue growth follows a strategic pricing adjustment where model costs were increased by 2.3 to 4.5 times. Despite these hikes, management noted that demand remained steady and prices continue to be among the lowest compared to major AI competitors. DeepSeek maintains a heavy focus on research and development, allocating over 70 percent of its computing power to training new models.