Chinese AI startup DeepSeek is preparing to launch an IPO in the second quarter of 2027. This is reported by The Wall Street Journal, citing sources. The company plans to submit the documents for the placement by the end of this year. DeepSeek is negotiating with investors and banks about an IPO on the Shanghai Stock Exchange. Founder Liang Wenfeng carefully selects potential investors. He strives to avoid a conflict of commercial interests with long-term research. The timing of the IPO may change depending on regulatory approval. Chinese authorities have recently relaxed the requirements for listing AI startups. Now companies can enter the Shanghai Stock Exchange even without making a profit.

In June, DeepSeek raised $7.4 billion in its first round of financing. Investors valued the startup at more than $50 billion. In early July, Liang began discussing a new round of financing with potential investors. Some sources say the company's valuation is $71 billion or higher. During meetings with investors in May, Liang warned about the risks. Without additional funding, DeepSeek may lose the pace of development. It will be more difficult for the company to retain leading specialists. There will also be difficulties in expanding the computing infrastructure. Previously, the startup was funded by Liang's personal funds. The capital of the hedge fund he founded was also used. As part of the June round, Liang invested $3 billion out of the $7.4 billion raised.

The AI market in China continues to actively develop and attract capital. DeepSeek holds a leading position among domestic neural network developers. A successful IPO can strengthen the company's position in the global market. Investors are closely monitoring the progress of Chinese AI projects. Easing regulatory requirements opens up new opportunities for startups. However, competition in the artificial intelligence sector remains high. DeepSeek will have to prove its resilience and growth potential. The public offering will be an important stage in the company's development. The success of the IPO may attract additional interest in Chinese technology stocks.