DeepSeek Seeks 50 Billion Yuan Raise at $74 Billion Valuation After Tenfold Revenue Jump

Annualized revenue has risen to as much as $500 million as global developers adopt the V4-Flash model. DeepSeek generated $70.7 million in revenue from January to July 2026, roughly 10 times its full-year 2025 total. The AI developer is now pursuing a second funding round of 50 billion yuan at a 500 billion yuan valuation, or approximately $74 billion, and has engaged investment banks to prepare for an initial public offering in Shanghai next year.

Net losses for the first seven months of the year narrowed to 715 million yuan, compared with 935 million yuan for all of 2025. The company’s API business recorded an 82.9% gross margin, which DeepSeek attributes to infrastructure optimizations that reduced chip requirements and inference costs. To strengthen monetization, the firm raised V4-Pro output pricing from $0.87 to $3.96 during peak hours, while AI infrastructure spending surged to 11 billion yuan in the January–July period from 1.2 billion yuan in 2025.