TLDRs:
- DeepL considers a U.S. IPO as early as next year, targeting a $5 billion valuation.
- The Cologne-based AI platform seeks funds to accelerate U.S. expansion and compete globally.
- DeepL’s growth follows a $2 billion valuation funding round in 2024.
- The IPO would strengthen DeepL’s position amid intense AI translation competition.
Cologne-based AI translation leader DeepL is reportedly exploring a U.S. initial public offering that could value the company at as much as $5 billion.
Sources familiar with the matter say the startup has already begun preliminary discussions with potential advisors, although no final decisions have been made regarding the timing or venue.
The move signals DeepL’s intent to significantly expand its presence in the U.S., a key market for AI-driven language services. Analysts suggest that listing in the U.S. could provide the company with access to a deeper pool of investors and potentially higher valuations compared with European exchanges.
Rapid Growth Since Last Funding Round
DeepL has experienced remarkable growth since its last funding round in May 2024, when it raised $300 million at a $2 billion valuation. The company’s trajectory reflects growing demand for AI translation tools among enterprises and professionals seeking accurate, real-time multilingual communication solutions.
Founded in 2017, DeepL quickly gained attention for outperforming competitors in neural network–based translation, thanks in part to a breakthrough in its architecture. This technical edge, coupled with the use of a 5.1 petaflop supercomputer in Iceland, allowed DeepL to process large datasets with high speed and precision.
Expanding Product Portfolio Beyond Text
While DeepL initially focused on text-based translation, it has since expanded its offerings. In November 2024, the company launched DeepL Voice, a real-time voice translation tool aimed at minimizing conversational latency.
CEO Jarek Kutylowski described the launch as a natural progression for DeepL, emphasizing the company’s commitment to high-quality, secure translation services.
The company is also planning the release of DeepL Agent, an AI assistant designed for business automation, signaling a broader ambition to embed AI into enterprise workflows. With offices in Japan and the U.S., and over 1,000 employees, DeepL is positioning itself as a global AI powerhouse.
Navigating an Intensifying AI Translation Market
DeepL’s potential IPO comes at a time of heightened competition in the AI translation sector. Major tech firms are investing heavily in language models. Google recently enhanced Google Translate with its Gemini AI, introducing advanced live translation and language learning tools, while Tencent open-sourced its Hunyuan-MT models after strong performance in WMT2025 benchmarks.
The translation feature arms race has also reached popular messaging apps, with WhatsApp rolling out on-device translations to maintain user privacy. Against this competitive backdrop, DeepL’s move to go public appears strategic, aiming to secure the capital required for research, development, and market expansion, particularly in the U.S.
IPO as Strategic Growth Lever
Experts say a U.S. IPO would not only provide financial resources but also elevate DeepL’s visibility among enterprise clients, helping it compete more effectively against Google, Microsoft, and Tencent.
With a strong backing from Benchmark, IVP, and Index Ventures, DeepL is positioning itself for the next phase of growth in the global AI translation industry.
As the company continues to innovate and broaden its AI offerings, the potential U.S. public listing may become a pivotal moment in establishing DeepL as a dominant player in the international AI translation landscape.
