AI Translation Firm DeepL Considers $5B IPO

DeepL SE, a German developer of AI translation software, is reportedly considering a public offering on a U.S. stock exchange. The company was valued at $2 billion after a $300 million funding round last March. According to Bloomberg, DeepL aims for a market capitalization of up to $5 billion with its initial public offering, suggesting rapid revenue growth similar to larger competitors like OpenAI.

DeepL's main product, DeepL Translate Pro, is an AI model capable of translating documents into over 30 languages. The company claims superior accuracy compared to competitors. In an internal comparison, users were 30% more likely to prefer DeepL over Google Translate, and this preference increased to 130% against Microsoft's translation software.

The company's website indicates that its translation model was developed using a 'human-guided training methodology,' possibly involving RLHF, or reinforcement learning from human feedback. This method involves encoding user preferences into a second AI model to train the primary AI.

DeepL also offers two other models. One translates speech in near real-time during Zoom and Microsoft Teams meetings, supporting over 30 languages. To address issues with technical terminology, DeepL allows organizations to create custom glossaries.

DeepL's third product, DeepL Write, identifies grammar, punctuation, and spelling errors and can rewrite paragraphs. Bloomberg reports that DeepL has held preliminary discussions with potential financial advisers about its IPO, expected as early as next year.