DeepSeek, an AI laboratory based in Hangzhou, is preparing to raise at least $12 billion in new funding. The company aims to complete this capital raise ahead of a planned initial public offering on the Shanghai STAR Market in 2027.
The company closed its first external funding round in June 2026, securing $7.4 billion. This round resulted in a post-money valuation exceeding $50 billion, with founder Liang Wenfeng contributing approximately $3 billion of his own assets.
DeepSeek is currently finalizing a second funding round. Reports indicate a pre-money valuation of approximately 500 billion yuan, or between $74 billion and $75 billion. The company has appointed CITIC Securities as its lead underwriter.
As of September 2026, the firm reported an annualized revenue run rate of $1 billion. Growth is primarily driven by the API business, which achieved a gross margin of 82.9% following price increases ranging from 2.3x to 4.5x.
Founded in 2023 as a spin-off from the hedge fund High-Flyer, DeepSeek operated on internal funding for three years. To mitigate the impact of US export restrictions on semiconductor technology, the company utilizes domestic Huawei hardware for its models.
