DeepSeek is asking about $75 billion for a company reported to bring in $1 billion a year
DeepSeek is reportedly doubling its second round to 100 billion yuan at a valuation near 500 billion yuan, four months after the first. Government-backed and corporate funds are setting that price, on revenue figures attributed to The Information.
The Investor · Invest desk
Key figures: a $75 billion valuation is no more than 75 times DeepSeek's annualized revenue of just past $1 billion. Annualized revenue was $500 million just months earlier. A filing linked to the June round implied a valuation of approximately 350 billion yuan.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Valuation over annualized revenue, no more than | 75 times | 23 | |
| Earlier annualized revenue | $500 million | 15 | |
| June valuation, about | 350 billion yuan | 5 |
What happened
- DeepSeek had planned to raise 50 billion yuan and doubled the target within two weeks as investor demand piled up, according to Caijing.
- Tencent and CATL are existing backers, and GigaDevice, SMIC and Geely Automobile are reported as new investors in the round.
- The Information reported that annualized revenue has climbed past $1 billion from $500 million just months earlier.
- The proceeds are earmarked for a data center under construction in Inner Mongolia, where DeepSeek plans more than 160,000 Huawei Ascend chips.
- DeepSeek hired Yan Wentao, a former Hillhouse partner, as CFO on September 21 and is expected to file for a STAR Market listing as early as year-end.
Why it matters
- contradiction Caijing says the round is about to wrap up at 100 billion yuan, while CNBC's sources say DeepSeek is only considering that size and Bloomberg earlier reported at least 80 billion.
- cost Whoever buys in at 500 billion yuan pays about 43% more than the roughly 350 billion yuan the June round implied.
- decision DeepSeek chose to turn away private funds that raise money from individuals, so the first price set by public-market investors would come at a listing.
- precedent At $75 billion DeepSeek would be priced at 1.5 times the roughly $50 billion at which Moonshot AI raised, and Bloomberg reports Moonshot is also targeting an early-2027 IPO.
The multiple takes one division: $75 billion [4] over annualized revenue that The Information put past $1 billion [15] gives 75 times, or rather no more than 75 times, since the report says only that revenue passed the mark [23]. If the round closes at 100 billion yuan, DeepSeek will have raised 150 billion yuan in four months [8], about $22 billion at the exchange rate in CNBC's conversion, or roughly 22 times annualized revenue [9].
The case that this is real monetization has three parts. Revenue is said to have climbed from $500 million within months [15]. Demand is said to have held after API prices went to two to four times previous levels in August [16]. And API gross margin was 82.9% for January to July, against 44.6% for the business as a whole [17]. Caijing's summary was that the company "built an entry barrier with a low-price strategy and is now converting its technological edge into profitability through price increases" [18]. The weak point is dating: both margin figures were measured before the price increase that Caijing credits [17]. Both reports also rest on unnamed sources, "multiple sources" for Caijing and people familiar with the matter for CNBC [11] [13].
The investor list is the better evidence of appetite, and a narrow one. It runs to a chip designer, a foundry operator, an automaker and a battery maker [2] [6]. We'd expect strategic buyers to value access or supply relationships in a way a financial buyer would not. If the 500 billion yuan is a post-money figure, 100 billion yuan buys 20% [10]; the reports do not say which basis applies.
In our view the reports establish that customers kept paying through a price increase of two to four times [16], and little beyond that. The counter-case is simple: if revenue keeps growing from a base that went from $500 million to more than $1 billion in months [15], and the API margin holds near 82.9% [17], 75 times sales looks cheap within a year. A margin at or above the January-to-July level in the STAR Market filing, where DeepSeek's own figures would first be stated [3], would be evidence against this view. A thinner one would support it.
At a private meeting with investors in July, Liang Wenfeng reportedly said technological progress towards AGI remains a priority, CNBC reported [21]. With the proceeds going into a data center build [19], we'd expect the API margin to be spent on capacity, and gross margin to say less about what the equity is worth than capital spending will.
What to watch
- Any API usage or pricing update after August, since it decides whether the 82.9% margin survives the higher prices.
- Whether a STAR Market filing, if made by year-end, shows revenue near the $1 billion annualized pace.
- A company statement or closing announcement confirming the round size, the valuation basis and the investor list.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence40
- Adoption50
- Hype gap+25
- Incentives
- Insufficient
- Confidence45
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
The second round targets a valuation of 500 billion yuan.
- [2]
Existing backers include Tencent and CATL; new investors include chip designer GigaDevice, foundry operator SMIC and Geely Automobile.
- [3]
DeepSeek hired Yan Wentao, a former Hillhouse Ventures partner, as chief financial officer on September 21, filling a post vacant for three years, and is expected to file a STAR Market listing application as early as the end of this year and go public next year.
- [4]
DeepSeek is seeking a valuation of around 500 billion yuan, equivalent to approximately $75 billion.
- [5]
An investor filing linked to the June round implied a valuation of approximately 350 billion yuan.
- [6]
CATL, Geely Auto and investment managers Monolith Management and Loyal Valley Capital have committed capital to the latest round.
- [7]
The 500 billion yuan target is about 43% above the roughly 350 billion yuan valuation implied by the June round.
- [8]
If the second round closes at 100 billion yuan, DeepSeek will have raised 150 billion yuan across two rounds.
- [9]
150 billion yuan is about $22 billion at CNBC's conversion rate, roughly 22 times annualized revenue of $1 billion.
- [10]
If the 500 billion yuan valuation is post-money, a 100 billion yuan raise buys 20% of the company.
- [11]
Caijing, citing multiple sources, reported that DeepSeek will soon wrap up a second funding round of 100 billion yuan, four months after raising 50 billion yuan in its first round in June.
- [12]
DeepSeek had originally planned to raise 50 billion yuan but doubled the target within two weeks as investor demand piled up.
- [13]
According to a CNBC report citing people familiar with the matter, DeepSeek is considering doubling the round to as much as 100 billion yuan ($14.9 billion), and the final amount could change as discussions continue.
- [14]
Bloomberg reported earlier that DeepSeek was close to securing at least 80 billion yuan in funding, with Tencent and CATL among its major potential backers.
- [15]
DeepSeek's annualized revenue has climbed past $1 billion from $500 million just months earlier.
- [16]
User demand held firm after DeepSeek raised API call prices in August to two to four times previous levels.
- [17]
Even before the August price increase, gross margin on DeepSeek's API business reached 82.9% in the January-July period, with an overall gross margin of 44.6%.
- [18]
Caijing said the company "built an entry barrier with a low-price strategy and is now converting its technological edge into profitability through price increases."
- [19]
DeepSeek will channel the new funds into a large data center under construction in Inner Mongolia, where it plans to deploy more than 160,000 of Huawei's Ascend AI chips.
- [20]
DeepSeek has reportedly turned away private investment funds that raise capital from individual investors and is largely limiting participation to government-backed and corporate funds.
- [21]
At a private meeting with investors in July, founder Liang Wenfeng reportedly said technological progress towards AGI remains a priority for the company, which is focused on AGI rather than maximising short-term profits.
- [22]
Moonshot AI is reportedly targeting an early-2027 IPO after raising funds at a valuation of around $50 billion.
- [23]
A $75 billion valuation over annualized revenue of just past $1 billion is no more than 75 times revenue.
- [24]
A $75 billion valuation for DeepSeek is 1.5 times the roughly $50 billion at which Moonshot AI raised.
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Sources
2 independent publishers whose own reporting we read for this story.
- en.sedaily.comDeepSeek Nears $14 Billion Funding Round, Double Its Original Target
1 article · October 14, 2026
- livemint.comChina AI race heats up: Why DeepSeek is doubling its mega-funding round to target $15 billion | Mint
1 article · October 7, 2026
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