DeepSeek's annualized revenue doubled to $1 billion in just a few months, and the company is expected to close its second round of financing worth 50 billion yuan by the end of October.

Beating AI Express News: The Information cited two people with direct knowledge that DeepSeek’s annual revenue has reached approximately $1 billion. Just a few months ago, this figure was less than $500 million, meaning it nearly doubled in a short period. Revenue mainly comes from model APIs; its free chat app still has no ad or subscription income. Part of this growth stems from price hikes. DeepSeek previously significantly raised prices for some APIs, with increases ranging from 2.3 to 4.5 times across different models and time periods. Liang Wenfeng recently told investors that the number of clients did not drop after the price hikes, and demand remains strong. Previously disclosed financial data shows that DeepSeek’s API business achieved a gross profit margin of 82.9% in the first seven months of this year. DeepSeek is also advancing its second round of financing, planning to raise approximately 50 billion yuan, with a valuation of around 500 billion yuan. This plan was previously reported, and the latest update is that the company hopes to complete the financing by the end of October. DeepSeek is also preparing for an IPO on the Shanghai Stock Exchange’s STAR Market. However, the company currently still allocates most of its computing power to model training. Liang Wenfeng said that over 70% of computing power is used for training new models, with less than 30% reserved for inference. DeepSeek is also trying to run more small models directly on gaming graphics cards, while keeping high-end chips for training.