DeepSeek Achieves $1B Revenue Milestone, Targets $75B Valuation for Upcoming IPO
Chinese AI titan, DeepSeek, has achieved a significant commercial milestone, attaining an annualized revenue run rate of approximately $1 billion. This is a significant increase from just under $500 million a few months ago, as reported by The Information, citing two individuals with direct knowledge of the situation.
The revelation of this revenue surge came from CEO Liang Wenfeng at a recent investor meeting. The primary driver of this increase was a bold strategic decision: DeepSeek raised its API pricing by 2.3x to 4.5x, depending on the model. Despite this increase, customer demand remained steady. The entirety of the $1 billion run rate is derived from developers and enterprises accessing DeepSeek’s models via its API, while the consumer chatbot remains entirely free. The company also reported an impressive gross margin of 82.9% through July 2026.
DeepSeek’s revenue news comes as the company gears up for a substantial second funding round. The company is targeting $7.5 billion (50 billion yuan) at a valuation of approximately $75 billion (500 billion yuan). This round is expected to close by the end of October 2026, ahead of a planned IPO on the Shanghai Stock Exchange. The Hangzhou-based startup first made waves in Silicon Valley in early 2025, when it launched models that rivalled U.S. competitors at a fraction of the cost.
Source: Crypto Briefing – DeepSeek reaches $1B annual revenue, plans to raise $7.5B at $75B valuation