Chinese AI Tigers on the Hunt: How News of DeepSeek’s IPO Shook the Market

Introduction: A Day of Triumph for Chinese Artificial Intelligence

Wednesday became the day when Chinese artificial intelligence stocks soared. Reports that major AI developer DeepSeek plans to conduct an initial public offering by the end of this year triggered a wave of optimism across the market. Zhipu AI shares jumped by nearly 9%, while MiniMax Group Inc. gained almost 15%.

DeepSeek, the undisputed leader of China’s group of so-called “AI Tigers,” is reportedly preparing to file for an IPO on Mainland China’s stock market later this year. The company is also raising private financing at a valuation of at least $71 billion, only a few weeks after securing $7 billion at a valuation of $50 billion.

In this article, we will examine what is driving this rally, assess the prospects of Chinese AI companies, and consider where the sector may be heading in the coming months.

DeepSeek: The Leader of Chinese AI

A Success Story

DeepSeek became a global leader in artificial intelligence after its R1 model gained worldwide recognition in early 2025. Since then, the company has released a series of updates and new models, including the V4 model family introduced in April.

According to the latest data, V4 ranked first among open-source AI models and has also demonstrated a growing number of requests through application programming interfaces, or APIs. These results further confirm DeepSeek’s leadership within the industry.

Preparing for an IPO

According to Bloomberg, DeepSeek is preparing to file for an IPO on Mainland China’s stock market later this year. The company is also raising private financing at a valuation of at least $71 billion.

This comes only a few weeks after the company raised $7 billion at a valuation of $50 billion. The sharp increase in valuation reflects strong investor interest in the company.

Impact on the Market

News of DeepSeek’s IPO preparations boosted investor interest in the shares of other Chinese AI companies. Optimism surrounding rapidly developing technologies has made these stocks some of the strongest-performing assets of the year.

Zhipu, which went public in January, has gained more than 1,500% since the beginning of 2026. MiniMax has fallen behind its initial performance but has also demonstrated impressive growth.

Other Major Players: Zhipu and MiniMax

Zhipu AI: Growth of More Than 1,500%

Zhipu AI, which trades under the name Knowledge Atlas Tech Joint Stock, surged by nearly 9% on Wednesday. Since the beginning of 2026, the company’s shares have risen by more than 1,500%.

This remarkable performance reflects the exceptionally strong demand for AI-related stocks. Zhipu is regarded as one of China’s leading artificial intelligence developers.

MiniMax Group: A 15% Increase

MiniMax Group Inc. gained almost 15%. The company has underperformed compared with its initial results: after its shares at least tripled following their market debut, the stock has declined by 25% since the beginning of the year. However, the latest rally indicates that investor interest is returning.

MiniMax is part of China’s “AI Tigers” group and develops advanced artificial intelligence models.

The “AI Tigers” Group

Zhipu and MiniMax, together with DeepSeek, belong to China’s so-called “AI Tigers” — a group of startups considered to be among the country’s leaders in artificial intelligence development.

The group has attracted considerable attention from investors and analysts who see significant growth potential in these companies.

DeepSeek’s Valuation: $71 Billion and Rising

Valuation Growth

DeepSeek’s valuation increased from $50 billion to at least $71 billion in only a few weeks. This reflects strong investor interest in the company and its technologies.

The increase may also be connected to the success of the V4 and R1 models, which have strengthened DeepSeek’s position in the market.

Raising Private Financing

DeepSeek is raising private capital at a valuation of at least $71 billion. The financing could provide the company with additional resources for further development and preparations for its public listing.

The fundraising may also indicate that investors remain confident in DeepSeek’s long-term prospects.

Impact on the Industry

DeepSeek’s success is inspiring other Chinese AI companies and attracting the attention of international investors. This contributes to the development of the industry as a whole.

China is becoming an increasingly important participant in the global artificial intelligence race.

DeepSeek’s IPO: What It Means for the Market

The Initial Public Offering

DeepSeek’s IPO on Mainland China’s stock market could become one of the largest listings of the year. It is likely to attract significant investor attention and could support further growth in the shares of other AI companies.

A successful offering would also strengthen China’s position as a major global leader in artificial intelligence.

Investor Expectations

Investors expect DeepSeek’s IPO to be successful and potentially lead to further growth in the company’s valuation and future share price. These expectations are contributing to optimistic market sentiment.

However, important risks remain, including the possibility of overvaluation and significant price volatility.

Impact on Other Companies

DeepSeek’s IPO could have a positive effect on other Chinese AI companies by increasing their valuations and attracting additional investor interest.

It could also encourage new investments and accelerate the development of the broader industry.

The Outlook for Chinese Artificial Intelligence

Sector Growth

China’s artificial intelligence sector continues to expand. Companies such as DeepSeek, Zhipu, and MiniMax are among the industry’s leading participants and continue to attract substantial investment.

The sector’s growth is supported by government policy and ongoing technological development.

Competition with the United States

Chinese AI companies are competing with major American technology businesses such as OpenAI and Google. The success of DeepSeek and other Chinese developers is strengthening China’s position in the global artificial intelligence race.

This competition encourages innovation and accelerates the development of new technologies.

Risks and Challenges

China’s AI sector faces several risks, including regulation, geopolitical tensions, and intense competition. Companies must continue investing in research and development while adapting to changing market conditions.

Nevertheless, the sector’s long-term prospects remain positive.

What This Means for Investors

Opportunities in Chinese AI

The growth of Chinese AI stocks is creating new opportunities for investors. DeepSeek’s IPO could become a major event that draws even greater attention to the sector.

Investors may view Zhipu, MiniMax, and other companies as potentially attractive assets.

Risks and Volatility

The artificial intelligence sector is characterized by high volatility. Share prices can rise and fall sharply, creating substantial risks for investors.

Investors should take these risks into account and maintain appropriately diversified portfolios.

Long-Term Prospects

Over the long term, China’s artificial intelligence sector has significant potential. Technological development and government support are creating favorable conditions for continued expansion.

Investors with a long-term investment horizon may view current market opportunities as a potential entry point.

Conclusion: A New Era for Chinese AI

Wednesday became a day when China’s AI sector demonstrated its strength. Reports that DeepSeek is preparing for an IPO triggered a wave of gains in Zhipu and MiniMax shares, confirming the high level of investor interest in the sector.

DeepSeek, the undisputed leader of China’s “AI Tigers,” is preparing to enter the public market at a valuation exceeding $71 billion. The offering could become an important milestone in the development of China’s artificial intelligence industry.

Zhipu and MiniMax are also demonstrating impressive performance, reflecting strong investor optimism. However, risks remain, including market volatility, intense competition, and the possibility of excessive valuations.

For investors, this is a period of both opportunities and challenges. China’s artificial intelligence sector continues to evolve, creating new prospects for growth. Investments in the sector may be profitable, but they require careful analysis and effective risk management.