AMD-Backed Korean AI Startup Upstage Weighs Pre-IPO Funding Round

Upstage, the South Korean artificial intelligence startup backed by U.S. chipmaker AMD, is considering a pre-IPO funding round, Bloomberg reports.

The company has not disclosed the size of the prospective round, its valuation target, or a timeline for either the fundraising or a subsequent public listing. Bloomberg's report establishes only that the Seoul-based firm is weighing the move — a step that typically signals a company is positioning itself for an initial public offering within a defined horizon.

A pre-IPO round allows private companies to raise capital at valuations closer to what public investors might eventually pay, while giving late-stage backers a discounted entry point before a listing. For AI startups in particular, such rounds have become a common mechanism to fund the heavy compute costs associated with training and deploying large models.

AMD's involvement anchors Upstage's investor roster. The chipmaker has actively backed AI software companies as it works to expand the ecosystem around its Instinct accelerators and challenge Nvidia's dominance in AI compute. An investment in Upstage fits that pattern: the Korean startup builds large language models and AI document-processing tools, product categories that drive demand for high-end accelerators.

Bloomberg's report did not specify whether AMD would participate in the potential new round, nor did it name any other prospective investors.

South Korea's AI sector has drawn increasing attention from global investors and strategic backers over the past two years. Upstage ranks among the country's most prominent AI startups, alongside peers such as Naver's cloud unit and Rebellion in AI chips. A successful pre-IPO raise would strengthen Upstage's balance sheet ahead of any listing attempt and could set a valuation benchmark for other Korean AI firms watching the public-market window.

The report also leaves open the question of listing venue. Korean AI companies face a choice between the domestic Kospi and Kosdaq markets, which have moved to loosen profitability requirements for tech listings, and U.S. exchanges, where investors have shown a stronger appetite for AI pure-plays. Upstage has not commented publicly on its preference, and Bloomberg's report contains no indication of a decision.

Company representatives did not provide additional details beyond the report, and no banker mandates, target dates, or deal structures have been confirmed.

If the round proceeds, Upstage would join a cohort of Asian AI companies raising capital ahead of anticipated listings, testing whether public-market enthusiasm for the sector — running hot in the United States — extends to Korea's exchanges.