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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.
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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.
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Elon Musk, Sam Altman, and Dario Amodei, three titans of the technology sector, are advancing toward initial public offerings for their respective ventures. With SpaceX, OpenAI, and Anthropic—three industry behemoths nearing trillion-dollar valuation
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