Home
DeepSeek Posts 475 Million Yuan Revenue in Seven Months, Scaling 5x as 50 Billion Yuan Valuation Fueling Second Funding Round

Two sources close to the financial records confirm that this Chinese artificial intelligence startup is accelerating its second funding round. From January to July 2026, DeepSeek generated approximately 475 million yuan (roughly $707 million USD) in revenue, marking a tenfold increase compared to its full-year 2025 figures. Meanwhile, the company’s net loss decreased from 935 million yuan in 2025 to 715 million yuan.
Open-source models fuel high gross margins
This robust growth signals a significant acceleration in business momentum, setting the stage for a potential initial public offering (IPO). Following a $700 million Series A round in June, the company has immediately initiated a second round targeting $700 million in new capital, with an estimated valuation of $7 billion. Investment banks have already been engaged to prepare for a listing next year.
Revenue growth is driven by the expanding deployment of open-source models. The flagship V4 series, particularly the lightweight V4-Flash variant, has gained traction among global developers for its cost-efficiency and performance. During the first seven months, the overall gross margin reached 44.6%, while API call margins soared to 82.9%—substantially outperforming OpenAI’s 39% and Anthropic’s estimated 63%.
DeepSeek has also recently adjusted its pricing structure. Earlier this month, it raised API fees, with the V4-Pro model now priced at $3.96 per million tokens during peak hours and $1.98 during off-peak times, a notable increase from the previous $0.87 rate. By advancing its second funding round amid rising revenue and gross profits, this open-source-founded lab is transforming its “low-cost, high-performance” narrative into a scalable commercial success story.
Related article
BYD Unveils Xuanji A3, Its First Automotive-Grade 4nm AI Chip
The global race for the foundational computing power of intelligent vehicles has reached a pivotal moment. On May 29, BYD unveiled the "Xuanji A3," China’s first fully self-developed, designed, and supply-chain-tested 4nm vehicle-grade intelligent dr
OpenAI Launches Astra for Law, Indexing 230M URLs and Outperforming General Models in Legal Q&A
On September 17, OpenAI released a blog post detailing Astra for Law, an AI foundation platform tailored for legal applications. Its robustness stems from its extensive data scale: the legal search index encompasses over 230 million URLs and integrat
TechCrunch Disrupt 2026: Early Bird Ticket Savings End in 3 Days
Just 3 days remain to save up to $410 on your ticket to TechCrunch Disrupt 2026. Early Bird pricing ends May 29 at 11:59 p.m. PT, and once the deadline passes, ticket prices increase.If you plan to attend one of the most influential gatherings in tec
Related Special Topic Recommendations
Comments (0)
0/500

Two sources close to the financial records confirm that this Chinese artificial intelligence startup is accelerating its second funding round. From January to July 2026, DeepSeek generated approximately 475 million yuan (roughly $707 million USD) in revenue, marking a tenfold increase compared to its full-year 2025 figures. Meanwhile, the company’s net loss decreased from 935 million yuan in 2025 to 715 million yuan.
Open-source models fuel high gross margins
This robust growth signals a significant acceleration in business momentum, setting the stage for a potential initial public offering (IPO). Following a $700 million Series A round in June, the company has immediately initiated a second round targeting $700 million in new capital, with an estimated valuation of $7 billion. Investment banks have already been engaged to prepare for a listing next year.
Revenue growth is driven by the expanding deployment of open-source models. The flagship V4 series, particularly the lightweight V4-Flash variant, has gained traction among global developers for its cost-efficiency and performance. During the first seven months, the overall gross margin reached 44.6%, while API call margins soared to 82.9%—substantially outperforming OpenAI’s 39% and Anthropic’s estimated 63%.
DeepSeek has also recently adjusted its pricing structure. Earlier this month, it raised API fees, with the V4-Pro model now priced at $3.96 per million tokens during peak hours and $1.98 during off-peak times, a notable increase from the previous $0.87 rate. By advancing its second funding round amid rising revenue and gross profits, this open-source-founded lab is transforming its “low-cost, high-performance” narrative into a scalable commercial success story.
BYD Unveils Xuanji A3, Its First Automotive-Grade 4nm AI Chip
The global race for the foundational computing power of intelligent vehicles has reached a pivotal moment. On May 29, BYD unveiled the "Xuanji A3," China’s first fully self-developed, designed, and supply-chain-tested 4nm vehicle-grade intelligent dr
OpenAI Launches Astra for Law, Indexing 230M URLs and Outperforming General Models in Legal Q&A
On September 17, OpenAI released a blog post detailing Astra for Law, an AI foundation platform tailored for legal applications. Its robustness stems from its extensive data scale: the legal search index encompasses over 230 million URLs and integrat
TechCrunch Disrupt 2026: Early Bird Ticket Savings End in 3 Days
Just 3 days remain to save up to $410 on your ticket to TechCrunch Disrupt 2026. Early Bird pricing ends May 29 at 11:59 p.m. PT, and once the deadline passes, ticket prices increase.If you plan to attend one of the most influential gatherings in tec











