DeepSeek Passes $1 Billion in Annualized Revenue Ahead of STAR Market IPO

DeepSeek's annualized revenue has reached about $1 billion, and the Chinese artificial intelligence startup aims to raise roughly $7.45 billion through an initial public offering by the end of next month, according to a September 24 report by The Information citing multiple sources.

The revenue figure has nearly doubled over the past few months. The Information attributed the surge in part to DeepSeek's decision to raise fees for its AI models by two to four times.

Annualized revenue measures projected yearly sales if the current pace of revenue generation holds for 12 months.

Chief Executive Officer Liang Wenfeng recently shared the revenue figure during meetings with investors, The Information reported.

The company is pursuing the IPO to expand its business. It is targeting a valuation of about $75 billion.

DeepSeek has already lined up its banking bench. Reuters reported earlier this month that the startup selected CITIC Securities as lead underwriter for a listing on Shanghai's STAR Market, the Shanghai Stock Exchange's technology-focused board.

The revenue milestone strengthens the company's hand as it courts public-market investors. A near-doubling of annualized sales in a matter of months, driven substantially by price increases rather than volume alone, gives Liang a concrete growth story to present in the investor meetings where he disclosed the figures.

The fee increases also mark a shift for a company that built its reputation on low-cost AI models. Charging two to four times more suggests DeepSeek believes demand for its models is durable enough to absorb significantly higher prices without losing customers.

A $75 billion valuation would place DeepSeek among the most valuable Chinese technology companies to go public in recent years. The $7.45 billion targeted raise, if completed by the end of next month as planned, would rank among the largest IPOs on the STAR Market.

The listing would also test investor appetite for Chinese AI assets onshore. The choice of CITIC Securities and the STAR Market signals that DeepSeek intends to tap domestic liquidity rather than pursue a listing in Hong Kong or the United States.

With the fundraising now in its final stage, the deal's completion would provide a public benchmark for valuing Chinese AI startups at a moment when the sector's revenue trajectories are being scrutinized worldwide.