September 9, 2026, (Inside AI) — DeepSeek, the Hangzhou-based AI startup that jolted global markets with its low-cost reasoning models, has hired CITIC Securities to prepare for an initial public offering on Shanghai's STAR Market, according to sources familiar with the matter. The company aims to begin the IPO process this year.
The move marks a decisive shift from private funding to public capital for one of China's most closely watched AI firms. It also signals that DeepSeek's backers see a window for liquidity even as US-China tech tensions reshape global AI supply chains.
Companies seeking a mainland China listing typically appoint a securities firm to conduct pre-listing tutoring before filing an application. The timing of a potential offering, the amount to be raised and the target valuation have not been decided, sources said. Neither DeepSeek nor CITIC Securities immediately responded to requests for comment.
The STAR Market, launched in 2019, was designed to attract technology companies with lighter profitability requirements than Shanghai's main board. It has hosted semiconductor and biotech listings but few pure AI model developers at DeepSeek's scale. A successful debut would test investor appetite for AI infrastructure spending that has yet to produce steady profits.
Why a Domestic Listing Now?
DeepSeek's rise was unconventional. The firm emerged from High-Flyer, a quantitative hedge fund that used its own computing clusters for trading. That history gave DeepSeek access to thousands of Nvidia GPUs before export restrictions tightened. Its V3 and R1 models demonstrated that top-tier reasoning could be trained at a fraction of Western costs.
A domestic IPO would let Chinese retail and institutional investors buy into a national AI champion. It would also reduce reliance on foreign venture capital, which has grown cautious about Chinese tech due to regulatory and geopolitical risk. Listing on the STAR Market keeps DeepSeek under Chinese securities law and away from US audit requirements.
The timing is notable. Chinese regulators have encouraged high-profile tech listings to deepen domestic capital markets. SMIC, Cambricon, and other chip firms raised billions on the STAR Market. DeepSeek would be the first major AI model developer to follow that path.
What the Market Will Scrutinize
Investors will focus on revenue quality. DeepSeek offers API access at prices far below rivals like OpenAI and Anthropic. That strategy built developer mindshare but may compress margins. The company has not disclosed audited financials, and its corporate structure remains opaque.
Another question is compute. US export controls have limited China's access to advanced AI chips. DeepSeek has optimized training to use fewer resources, but scaling inference for millions of users still requires substantial hardware. A public filing would reveal procurement strategies and capital expenditure plans for the first time.
Sources said the offering size and valuation are undecided. Comparable listings are scarce. SenseTime and Megvii went public in Hong Kong but struggled after debut. Moonshot AI and Zhipu AI remain private. DeepSeek's brand recognition could command a premium, but profitability remains unproven.
The IPO process in China includes a tutoring phase that can last months. Regulators review financials, corporate governance, and technology independence. Any delay could push the actual listing into 2027. For now, the hiring of CITIC Securities is the first formal step toward a public debut that would rank among China's most significant AI capital events.
