DeepSeek revenue jumped tenfold in 2026, report says

Chinese artificial intelligence startup DeepSeek generated approximately 475 million yuan ($70 million) in revenue during the first seven months of 2026, representing roughly a tenfold increase from its full-year 2025 revenue, according to a report by The Information published on Tuesday.theinformation+1

Losses Continue Amid Rapid Growth

Despite the revenue surge, DeepSeek recorded a net loss of around 715 million yuan in the January-to-July period, following a full-year net loss of 935 million yuan in 2025. The company's overall gross margin stood at 44.6 percent, while its API model invocation services achieved a gross margin of 82.9 percent.thestandard

The figures offer a rare look into the financials of DeepSeek, which rattled global technology markets in January 2025 when it released models that rivaled leading U.S. competitors at a fraction of the cost. The company's annualized revenue run-rate had previously been estimated at $400 million to $500 million.thestandard

Fundraising and IPO Preparations

DeepSeek is currently in talks with existing and potential investors to raise 50 billion yuan in a second funding round that would value the firm at 500 billion yuan, The Information reported. The startup hired investment banks to prepare for a listing next year immediately after completing a 50-billion-yuan first round in June.thestandard

Still Dwarfed by U.S. Rivals

The revenue growth, while rapid, leaves DeepSeek far behind its American counterparts. OpenAI generated $5.7 billion in revenue with a 39 percent gross margin in the first quarter of 2026, while Anthropic posted $11.5 billion in second-quarter revenue and expects its full-year gross margin to rise from 40 percent in 2025 to 63 percent. The gap underscores how DeepSeek's strategy of offering cheaper models has driven adoption but at a scale still a fraction of the leading U.S. AI labs.thestandard