DeepSeek Hits 1 Billion Dollar Revenue Run Rate as Chinese AI Startup Targets 7.5 Billion Raise

Chinese AI startup DeepSeek has reached an annualized revenue run rate of 1 billion dollars, CEO Liang Wenfeng disclosed to investors in September 2026, according to reports from PYMNTS and Tech Startups.

The milestone represents a sharp acceleration in the company's commercial growth. In August 2026, DeepSeek reported that it had generated approximately 475 million yuan, or roughly 70.7 million dollars, in revenue during the first seven months of the year. That figure was already a tenfold increase compared to the company's total revenue for all of 2025.

The jump to a 1 billion dollar run rate followed a price increase for DeepSeek's model API fees in August 2026. The company raised prices by 2.3 to 4.5 times. Liang told investors that the price hike did not reduce the customer base, indicating sustained demand for the company's AI models.

DeepSeek is now targeting a second funding round of 50 billion yuan, or approximately 7.5 billion dollars, with a target valuation of 500 billion yuan, or about 75 billion dollars. The company aims to close the round by the end of October 2026. It has engaged CITIC Securities to facilitate a potential listing on the Shanghai Stock Exchange's STAR Market.

Despite the revenue growth, Liang noted that more than 70 percent of DeepSeek's computing capacity is currently dedicated to training new models, with less than 30 percent allocated to serving existing customers.

DeepSeek gained international attention in early 2025 for releasing high-performance AI models that required significantly less computing power than comparable models from U.S. companies. The company has positioned itself as a cost-efficient alternative in the global AI market.