Skip to content

Invest Widely confirmed6 publishers 3 min read Published Updated

DeepSeek's second round prices the lab at about 75 times its $1 billion revenue run rate

DeepSeek is close to raising at least 80 billion yuan at a pre-money valuation of about 500 billion yuan, roughly $75 billion, Bloomberg reported. At about 75 times its $1 billion run rate, the round sets the floor a 2027 Shanghai STAR Market listing has to clear.

The Investor · Invest desk

Send a correction

What happened

  • Tencent and battery maker Contemporary Amperex Technology committed some of the largest amounts in the current round, according to the Bloomberg report carried by Reuters.
  • Much of DeepSeek's revenue growth came from its API business, where prices rose by 2.3 to 4.5 times and the unit posted an 82.9% gross margin.
  • DeepSeek has brought on CITIC Securities as lead underwriter for the listing and appointed a new chief financial officer.

Why it matters

  • What doesn't add up contradiction The reported round sizes differ by 30 billion yuan, about $4.5 billion, and that gap decides whether new investors end up with about 9.1% of DeepSeek or about 13.8%.
  • What it limits constraint A STAR Market offering valued below roughly $82 billion to $86.5 billion would mark this round's buyers down, so the listing price starts from a floor set by this private round.
  • Who's exposed exposure Buyers paying about 75 times run-rate revenue depend on customers accepting API prices 2.3 to 4.5 times higher; if usage drops as those prices settle, revenue stalls under the valuation.

At the 6.7045 yuan to the dollar Reuters used, 500 billion yuan is about $74.6 billion [1][6]. Against the $1 billion annualized revenue run rate DeepSeek reported as of September [10], that comes to roughly 75 times revenue before any new money goes in [16]. Adding the money lifts the multiple. At the 80 billion yuan or more that Bloomberg reported [5], the post-money valuation is about 580 billion yuan, or $86.5 billion, close to 87 times the run rate [23]. The new money by itself is about 12 times a year of current revenue [18].

The reports disagree on the round's size. Bloomberg's figure of at least 80 billion yuan comes from people familiar with the matter, and Reuters, carrying the report, could not immediately verify it [5][8]. Crypto Briefing cites the same Bloomberg report for a headline of at least $12 billion [2] but describes the second round as around 50 billion yuan, roughly $7.4 billion to $7.5 billion [9]. The two figures are 30 billion yuan apart, about $4.5 billion [15]. At 50 billion yuan the new investors own roughly 9.1% of the company; at 80 billion they own roughly 13.8% [22][23].

The June mark was set by insiders, or rather by one insider. Founder Liang Wenfeng put about $3 billion of his own assets into a raise of roughly $7.4 billion that closed at a post-money valuation over $50 billion [3][4]. His share comes to about 41% of what was billed as DeepSeek's first external round, leaving roughly $4.4 billion from outsiders [14]. High-Flyer, the hedge fund Liang runs, had bankrolled the lab alone for three years before that [13]. The new pre-money is at most about 1.5 times the June post-money, a step-up of up to roughly 49% (less, since June closed "over" $50 billion) [17]. This time the largest commitments include Tencent and Contemporary Amperex Technology [11].

Much of the revenue growth came from the API business, where prices rose by 2.3 to 4.5 times and the unit posted an 82.9% gross margin [20]. The run rate more than doubled [10]. Price rises of that size could account for a doubling by themselves; the reports do not say how much usage grew.

At 80 billion yuan on a 500 billion yuan pre-money, the STAR Market offering [7] has to value DeepSeek above about $86.5 billion or mark these buyers down [23]. At 50 billion yuan, the bar is about $82 billion [22]. The price could also move before closing. Crypto Briefing lists that as an open question, along with whether the run rate keeps climbing and whether API margins hold once the price increases settle [21].

I think the 500 billion yuan is a bet that customers keep paying the higher API prices, and the figure the listing has to beat is the post-money, $82 billion to $86.5 billion [22][23]. The counter-case is that usage grows into the multiple, on models DeepSeek runs on domestic Huawei hardware [19], and 75 times turns out to be a 2026 number that falls quickly as revenue compounds [16]. A run rate that keeps rising after the price increases have worked through, with the 82.9% API margin intact [20], would prove the counter-case right.

What to watch

  • Whether the round closes at a 500 billion yuan pre-money, and whether its final size is nearer 50 billion or 80 billion yuan.
  • DeepSeek's next run-rate disclosure once the 2.3x to 4.5x API price increases have worked through, and whether the 82.9% API gross margin holds.
  • The valuation range in the STAR Market filing, measured against a post-money of roughly $82 billion to $86.5 billion.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence65
Adoption35
Hype gap+20
Incentives60
Confidence60

Perspective Coverage

17 publishers
Builder
Builder 7%
Operator
Operator 10%
Investor
Investor 83%
Why these scores

Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    The second round reportedly values DeepSeek at about 500 billion yuan before the new money goes in, or roughly $74 to $75 billion.

    Reported Supported Source: Crypto BriefingView cited source
  2. [2]

    DeepSeek is close to raising at least $12 billion in fresh funding before it goes public in 2027, according to Bloomberg.

    Reported Supported Source: Crypto Briefing, citing BloombergView cited source
  3. [3]

    DeepSeek closed its first external funding round in June 2026, raising approximately $7.4 billion, at a post-money valuation of over $50 billion.

    Reported Supported Source: Crypto BriefingView cited source
  4. [4]

    Founder Liang Wenfeng put in approximately $3 billion of his own assets in the June round.

    Reported Supported Source: Crypto BriefingView cited source
  5. [5]

    DeepSeek is close to securing at least 80 billion yuan ($11.93 billion) in its latest round of funding, Bloomberg News reported on Tuesday (Oct 6), citing people familiar with the matter.

    Reported Supported Source: Reuters via CNA, citing Bloomberg NewsView cited source
  6. [6]

    Reuters used an exchange rate of $1 = 6.7045 Chinese yuan.

    Reported Supported Source: Reuters via CNAView cited source
  7. [7]

    DeepSeek is preparing for a potential listing on Shanghai's STAR Market.

    Reported Supported Source: Crypto BriefingView cited source
  8. [8]

    Reuters could not immediately verify the Bloomberg report.

    Reported Supported Source: Reuters via CNAView cited source
  9. [9]

    DeepSeek is finalizing talks on another round, described as around 50 billion yuan, roughly $7.4 to $7.5 billion.

    Reported Supported Source: Crypto BriefingView cited source
  10. [10]

    As of September 2026, DeepSeek reported an annualized revenue run rate of $1 billion, more than double its previous figures.

    Reported Supported Source: Crypto BriefingView cited source
  11. [11]

    Contemporary Amperex Technology and Tencent Holdings have committed among the largest amounts in the current funding round.

    Reported Supported Source: Reuters via CNA, citing Bloomberg NewsView cited source
  12. [12]

    DeepSeek has brought on CITIC Securities as lead underwriter and appointed a new chief financial officer.

    Reported Supported Source: Crypto BriefingView cited source
  13. [13]

    DeepSeek was founded in 2023 as a spin-off from High-Flyer, the hedge fund run by Liang; High-Flyer bankrolled the lab on its own for three years, with outside investors only let in during 2026.

    Reported Supported Source: Crypto BriefingView cited source
  14. [14]

    Liang's roughly $3 billion was about 41% of the June round, leaving roughly $4.4 billion from outside investors.

    Derived Supported
  15. [15]

    The two reported round sizes differ by 30 billion yuan, about $4.5 billion.

    Derived Supported
  16. [16]

    The 500 billion yuan pre-money is about $74.6 billion, roughly 75 times DeepSeek's $1 billion annualized run rate.

    Derived Supported
  17. [17]

    The new pre-money is at most about 1.5 times the June post-money, a step-up of up to roughly 49%.

    Derived Supported
  18. [18]

    The new money alone is about 12 times DeepSeek's current annual run rate.

    Derived Supported
  19. [19]

    DeepSeek runs its models on domestic Huawei hardware in response to US export restrictions on semiconductor technology.

    Reported Contested Source: Crypto BriefingView cited source
  20. [20]

    Much of the revenue growth came from DeepSeek's API business; price increases ranged from 2.3x to 4.5x, and the API unit posted an 82.9% gross margin.

    Reported Contested Source: Crypto BriefingView cited source
  21. [21]

    Things to watch before 2027: whether the second round closes at the reported valuation, whether the $1 billion run rate keeps climbing, and whether the API business holds its margins once the price increases fully settle in.

    Reported Insufficient Source: Crypto BriefingView cited source
  22. [22]

    At a 50 billion yuan raise, post-money is about 550 billion yuan (about $82 billion) and new investors own about 9.1%.

    Derived Insufficient
  23. [23]

    At an 80 billion yuan raise, post-money is about 580 billion yuan (about $86.5 billion), close to 87 times the run rate, and new investors own about 13.8%.

    Derived Insufficient

Sources

6 independent publishers whose own reporting we read for this story.

  1. bloomberg.com

    1 article · October 5, 2026

    Sources: DeepSeek is close to raising $12B+ in a round that could reach ~$14.9B, with Tencent and CATL as the biggest contributors, ahead of an early-2027 IPO
  2. calcalistech.com

    1 article · October 5, 2026

    DeepSeek’s funding round could approach $15 billion as investor demand surges | Ctech
  3. channelnewsasia.com

    1 article · October 5, 2026

    DeepSeek to raise at least $12 billion in Tencent-backed funding, Bloomberg News reports
  4. chinamoneynetwork.com

    1 article · October 6, 2026

    DeepSeek Nears $12 Billion Funding Round Supported by Tencent and CATL – China Money Network
  5. cnbc.com

    1 article · October 6, 2026

    DeepSeek considers doubling latest funding round to up to $15 billion, sources say
  6. cryptobriefing.com

    1 article · October 5, 2026

    DeepSeek nears $12 billion in funding ahead of 2027 IPO
  7. DeepSeek set to net over $12b in new fundraising
  8. economictimes.indiatimes.com

    1 article · October 5, 2026

    DeepSeek funding: DeepSeek to raise at least $12 billion in Tencent-backed funding - The Economic Times
  9. en.sedaily.com

    1 article · October 5, 2026

    China's Two AI Leaders Near IPOs at $50B and 500B Yuan Valuations
  10. finance.yahoo.com

    1 article · October 6, 2026

    DeepSeek raising $12 billion ahead of 2027 IPO
  11. proactiveinvestors.com

    1 article · October 6, 2026

    DeepSeek set to raise at least $12 billion in funding backed by Tencent and CATL | HKG:0700, OTC:TCEHY
  12. pymnts.com

    2 articles · October 6, 2026

    DeepSeek Looks to Raise $12 Billion Ahead of IPO
  13. qz.com

    1 article · October 6, 2026

    DeepSeek is raising at least $12 billion in a Tencent-backed funding round
  14. runtimewire.com

    1 article · October 5, 2026

    DeepSeek seeks $12B after demand outstrips its funding target
  15. straitstimes.com

    1 article · October 5, 2026

    DeepSeek set to raise $15 billion in Tencent-backed funding | The Straits Times
  16. the-decoder.com

    2 articles · October 6, 2026

    CATL and Tencent back Deepseek's ballooning funding round as the AI startup eyes a 2027 IPO
  17. thenextweb.com

    1 article · October 6, 2026

    DeepSeek reportedly nears $12bn funding round backed by Tencent and CATL

Topics and entities