DeepX Hires Morgan Stanley for Funding Ahead of 2027 IPO
South Korean AI chip designer DeepX Co. has engaged global investment bank Morgan Stanley to spearhead its upcoming capital-raising initiatives, a strategic move preceding a potential initial public offering (IPO) slated for 2027. This collaboration marks a significant step for DeepX as it seeks to scale its operations in the fiercely competitive artificial intelligence hardware market.
The Seoul-based startup is reportedly preparing for a new funding round with ambitions to secure substantially more capital than the 110 billion won (approximately $79 million) it successfully raised in its Series C round last year. Sources close to the matter, who requested anonymity due to the private nature of the discussions, indicate that following this significant capital injection, DeepX aims to debut on the public stock market within approximately two years.
DeepX’s decision to enlist Morgan Stanley underscores the company’s serious intent to solidify its financial foundation and expand its market footprint. As one of the world’s leading financial institutions, Morgan Stanley’s involvement lends considerable credibility to DeepX’s growth trajectory and provides access to a vast network of international institutional investors. This partnership is crucial for a chip design firm, an industry segment known for its high research and development costs and extensive capital requirements.
The global demand for specialized AI chips, which are the backbone of everything from large language models to autonomous vehicles, has skyrocketed. This surge has fueled intense competition and driven unprecedented investment into companies like DeepX, which are developing the next generation of semiconductors optimized for AI workloads. DeepX’s emergence from South Korea highlights the broadening geographical scope of innovation in the AI sector, moving beyond established tech hubs to encompass diverse global players.
The planned IPO in 2027 would allow DeepX to tap into public markets for further expansion, potentially funding more ambitious R&D projects, scaling manufacturing partnerships, and attracting top-tier talent. Such a listing would also provide an exit opportunity for early investors, showcasing the potential returns on investment in cutting-edge AI technology. As the AI arms race intensifies, securing substantial funding and preparing for a public listing are critical maneuvers for companies aspiring to carve out a leading position in this transformative technological frontier. DeepX’s proactive financial strategy, guided by a major global bank, positions it to capture a larger share of the rapidly expanding AI chip market.