DeepSeek Achieves $1B Revenue Run Rate, Targets $7.5B in Upcoming Fundraising Round

Chinese AI startup DeepSeek has achieved an annualized revenue run rate of $1 billion, more than double the figure reported just a few months ago. This signals its rapid rise as a formidable commercial player in the global AI industry, according to a report by The Information.

CEO Liang Wenfeng shared this milestone with investors at a recent meeting. He noted that this surge followed significant API price increases of between 2.3 and 4.5 times. Despite these increases, demand for DeepSeek’s models remained strong. The company’s API business recorded an impressive 82.9% gross margin through July 2026, rivaling those of U.S. frontier AI labs. DeepSeek’s revenue is primarily derived from developers paying to access its models via API, while its popular consumer chatbot remains free.

The revenue announcement comes as DeepSeek finalizes its second funding round. The company aims to raise approximately $7.5 billion (50 billion yuan) at a valuation of around $68.8 billion, with a closing target of end of October 2026. DeepSeek is also preparing for an eventual IPO on the Shanghai Stock Exchange. The company first garnered global attention in late 2025, when its cost-efficient AI models challenged assumptions about the dominance of American AI companies and ignited fresh debate over the AI race between the U.S. and China.

Source: PYMNTS – DeepSeek Doubles Annual Revenue Run Rate to $1 Billion Ahead of IPO