Surging API Revenue Growth
DeepSeek Reports $1 Billion Annualized Revenue Following Significant API Price Hikes
Anonymous
Key Points
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The Information reported that DeepSeek earned about 475 million yuan ($70.7 million) in the first seven months of 2026—roughly ten times its total revenue for all of 2025.
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DeepSeek’s chatbot is free to use; the reported revenue chiefly comes from developers paying to access its models through the API.
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The reported second funding round followed a pause in July after leaked remarks by Liang Wenfeng went viral on Chinese social media; talks reportedly restarted in August. DeepSeek closed its first round, worth about $7 billion, in June, with Liang providing a large share of the money.
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Reuters had reported that DeepSeek selected CITIC Securities as lead underwriter for a planned listing on the Shanghai Stock Exchange’s technology-focused STAR Market.
Chinese AI startup DeepSeek has reached an annualized revenue run rate of about $1 billion, more than doubling from under $500 million just months ago, The Information reported. The surge reflects rising demand for its AI models and price increases of 2.3 to 4.5 times, with founder Liang Wenfeng telling investors that customers stayed loyal despite the higher fees. The company is pursuing roughly $7.5 billion in new funding at a valuation near $74 billion to $75 billion.
DeepSeek's chatbot remains free to users, but developers pay to access its models through an API—the main source of revenue. The figure represents a projection based on current revenue pace, not money already earned over a full year. DeepSeek has not publicly confirmed these reports.
API Revenue Doubles After Aggressive Price Hikes
Most of DeepSeek's $1 billion annualized run rate comes from developers accessing its models through its API service. The Information reported the company earned about 475 million yuan ($70.7 million) in the first seven months of 2026—roughly ten times its total revenue for all of 2025. Price increases of between 2.3 and 4.5 times across different models drove much of this growth.
Founder Liang Wenfeng told investors that customers remained willing to pay the higher prices. Despite devoting most computing resources to training new AI models rather than serving API requests, DeepSeek has managed rapid revenue acceleration.
Funding Plans Stalled, Then Restarted in August
DeepSeek closed its first funding round worth about $7 billion in June, with Liang personally providing a large share. Talks on a second round paused in July after leaked remarks by Liang went viral on Chinese social media, causing public backlash. The company resumed fundraising discussions in August and aims to finalize the $7.5 billion round by late October.
The funding effort appears tied to a planned Shanghai listing. Reuters reported that DeepSeek selected CITIC Securities as lead underwriter for a listing on the Shanghai Stock Exchange's technology-focused STAR Market.
Valuation Climbs Sharply Amid AI Race Competition
DeepSeek's reported valuation of $74 billion to $75 billion marks explosive growth for a company founded in 2023. The valuation reflects investor appetite for Chinese AI startups competing globally with OpenAI and other leaders. Liang's personal wealth stake in the company gives him significant control over its direction and strategy.
The company continues investing heavily in computing power and model development, prioritizing long-term capability over short-term profit maximization. This approach mirrors early strategies by other AI leaders but requires massive capital investment to sustain.
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