DeepSeek, the Hangzhou-based AI laboratory, reached a $1 billion annualized revenue run rate in September 2026, doubling its revenue from $500 million reported just months earlier. This growth was driven by API price hikes of 2.3x to 4.5x, while its consumer chatbot remains completely free. The company is currently finalizing a second funding round targeting approximately $7.5 billion at a $75 billion valuation, expected to close by the end of October 2026. Gross margins reached 82.9% through July 2026. Founded in July 2023 by Liang Wenfeng, DeepSeek is also planning an initial public offering on the Shanghai STAR Market targeted for 2027.
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