DeepSeek API Gross Margin Reaches 82.9%, Overall Company Gross Margin at 44.6%

Beating AI Flash News, according to a report by The Information, DeepSeek is seeking a second round of financing at an estimated valuation of approximately 500 billion RMB, with plans to raise an additional 50 billion RMB. Data shows that from January to July 2026, DeepSeek's revenue reached 475 million RMB (approximately $70.7 million), about 10 times its total revenue for 2025. During the same period, net losses narrowed to 715 million RMB, down from 935 million RMB for the full year of 2025. In terms of profitability, DeepSeek's overall gross margin reached 44.6%, with the API business achieving a gross margin as high as 82.9%, primarily due to AI infrastructure optimization, enabling models to run with fewer chips and maintain lower inference costs. With the widespread adoption of the V4 series, particularly V4-Flash, by global developers, the company's revenue growth has accelerated. Reportedly, its annualized revenue last month reached $400 million to $500 million. Additionally, DeepSeek recently raised API prices to strengthen commercialization, with peak-time output prices for V4-Pro increasing from $0.87 to $3.96, and off-peak prices at $1.98, still lower than Kimi K3's $15 and Claude Opus 5's $25. Meanwhile, the company's investment in AI infrastructure surged from 1.2 billion RMB in 2025 to 11 billion RMB in the first seven months of this year, primarily for server leasing and the procurement of AI chips and computing power equipment. Earlier this June, DeepSeek completed its first round of external financing, raising approximately 50 billion RMB. The company has now hired investment banks to prepare for an IPO in Shanghai next year. [Original Link]