DeepSeek seeks $7.4 billion in funding amid tenfold revenue growth

Chinese AI laboratory DeepSeek is reportedly seeking to raise approximately 50 billion yuan (about $7.4 billion) at a valuation of 500 billion yuan (about $74.4 billion). This follows a significant surge in the company's financial performance.

According to reports citing unnamed sources, DeepSeek generated roughly 475 million yuan (about $70.7 million) in revenue during the first seven months of 2026, representing a tenfold increase compared to its total revenue for 2025. Despite this growth, the company recorded a net loss of approximately 715 million yuan (about $106 million) between January and July.

DeepSeek has maintained high gross profit margins, reaching 44.6% overall and 82.9% for its API model access services. This efficiency is attributed to optimized AI infrastructure that reduces the number of chips required for tasks. The company's infrastructure spending also saw a massive increase, rising to approximately 11 billion yuan in the first seven months of the year.

In addition to financial growth, DeepSeek has introduced a new self-extending AI system and a flexible, open-source harness that allows for highly customizable user interfaces and autonomous agent capabilities.