How to Invest in DeepSeek Pre-IPO

By Matthew DiLallo – Updated Oct 3, 2025 at 2:52 PM | Fact-checked by Parker Hicks

Key Points

DeepSeek's AI model is cheaper due to its selective activation of model parts.
The company, backed solely by High-Flyer, has no immediate IPO plans.
Invest in AI trends through Nvidia, Microsoft, or Meta as alternatives to DeepSeek.

DeepSeek burst onto the scene in early 2025. The Chinese artificial intelligence (AI) start-up's open-source large language model (LLM) relies on a technique known as interference-time computing. This approach only activates the most relevant portions of the model to perform each query, which saves time and money.

AI disrupting market — Image source: Getty Images.

The private Chinese company was formed in July 2023 by Liang Wenfeng, who created it with money from his hedge fund. It released its latest AI model in mid-January 2025; the model reportedly only cost about $6 million to make, a fraction of the roughly $1 trillion leading U.S. AI companies like OpenAI, Alphabet's (GOOG +0.47%) (GOOGL +0.55%) Google, and Meta Platforms (META +0.10%) plan to plow into AI infrastructure in the coming years. If DeepSeek can truly build AI models for such a low investment -- because it requires significantly fewer specialized semiconductors from companies like Nvidia (NVDA +1.06%) -- it could cause a massive disruption to the AI industry in the coming years.

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Artificial Intelligence

Artificial intelligence is the use of machines to mimic human intelligence.

Given the company's quick rise to fame, many investors wonder how to get in on this potentially game-changing AI company. Here's everything you need to know about how to invest in the AI sector and DeepSeek before its initial public offering (IPO).

Is DeepSeek publicly traded?

DeepSeek was not a publicly traded company as of early 2025. Chinese hedge fund High-Flyer, founded and run by DeepSeek founder Liang Wenfeng, owns DeepSeek and is the sole funder of the AI start-up.

When will DeepSeek IPO?

DeepSeek didn't have an IPO on the calendar as of late 2025. The AI start-up likely won't go public anytime soon. The company is still a very early stage start-up that hasn't yet started to commercialize its latest AI model, so it could be quite some time before the company goes public.

IPO

IPO (Initial Public Offering) is the first sale of stock by a private company to the public, making it a publicly traded entity.

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It's easy to invest in one of these DeepSeek alternatives or another IPO in 2025. Here's a step-by-step guide to add them to your portfolio:

Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments.
Step 2: Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Step 5: Submit your order: Confirm the details and submit your buy order.
Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Is DeepSeek profitable?

DeepSeek is a privately held AI start-up owned solely by a Chinese hedge fund, so there isn't currently any financial data available on the company.

Should I invest in DeepSeek?

You can't currently invest in DeepSeek because it's a privately held company owned by Chinese hedge fund High-Flyer.

However, if the company does complete an IPO, there are several factors you should consider before buying IPO stock in the company. A big one is whether the company is being completely transparent about the number and types of chips it's using to train its AI model.

Many in the tech industry believe the company is understating the chips it's using due to the changing taxes, tariffs, and geopolitical issues. It might cost more -- potentially significantly more -- to train its AI model than the $6 million figure initially reported in the media.

Investors also need to consider the risks of investing in Chinese companies. These risks include geopolitical issues, the potential for the lack of transparency in its finances, the greater possibility of fraud due to less oversight, security and privacy concerns, and other possible factors that could negatively affect an investment in the company.

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The bottom line on DeepSeek

DeepSeek has sent shockwaves through the AI sector after unveiling its much cheaper approach to training AI models. While there are some questions about how much its model actually costs, the implications are significant. It could disrupt some AI leaders while potentially enhancing the use of the technology in the future. That makes DeepSeek a very interesting company to watch.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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Matt DiLallo has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Nvidia, and Tencent. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.