The rapid re-rating reflects both the company’s revenue trajectory and a favorable regulatory shift. DeepSeek’s annualized revenue has reportedly reached $400 million to $500 million, roughly double its 2025 run rate, according to Cryptobriefing.com and The Information. That top-line growth is providing a stronger foundation for its fundraising narrative.
On the regulatory front, the China Securities Regulatory Commission (CSRC) announced on June 18 that it would allow non-profitable AI startups to list on the Shanghai STAR Market. That policy change opens a direct path for DeepSeek, which has historically operated at a loss while investing heavily in research and infrastructure.
DeepSeek has started early deliberations for a potential listing on Shanghai’s STAR Market, sources told The Business Times. The Straits Times reported that the company is preparing for an IPO filing as soon as the end of 2026, with a listing targeted for 2027. The STAR Market, China’s Nasdaq-style board, has become a preferred venue for tech firms that cannot easily access U.S. exchanges due to geopolitical and regulatory constraints.
The capital being raised is expected to fund a significant expansion. Historical context from the Farrsal dossier indicates that after its June round, DeepSeek announced plans to double its headcount across departments including data centers and AI agents. The company is also reportedly developing its own AI inference chips and has stepped up hiring of chip design engineers—initiatives that require substantial capital expenditure.