DeepSeek, an AI laboratory based in Hangzhou, reached an annualized revenue run rate of $1 billion as of September 2026. This figure represents a twofold increase from the $500 million reported only months prior. The growth is primarily attributed to a significant rise in API pricing, which increased by 2.3 to 4.5 times, while the company's consumer chatbot remains free.
The company is currently finalizing a second external funding round aiming for $7.5 billion at a valuation of $75 billion. This deal is expected to close by the end of October 2026. If successful, the valuation will increase by 44% compared to the first funding round in June 2026, which raised $7.4 billion at a valuation of $52 billion.
DeepSeek was founded in July 2023 by Liang Wenfeng, the former head of the quantitative hedge fund High-Flyer. Currently, more than 70% of the firm's computing capacity is allocated to training new models. Additionally, the company has appointed CITIC Securities as the lead underwriter for an initial public offering on the Shanghai STAR Market, which is planned for 2027.
