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Chinese AI Firm DeepSeek Sees Revenue Surge 10x in First Seven Months of 2024
Technology Services · Internet Software/Services · yonhap_finance · 2026-08-27
DeepSeek reported 97.6 billion won in revenue through July, marking a tenfold increase over last year as the company prepares for a major funding round.
What Happened
Revenue Growth: Chinese AI startup DeepSeek reported revenue of approximately 97.6 billion won for the first seven months of 2024, representing a tenfold increase compared to its total revenue for the previous year. While the company recorded a net loss of 147 billion won during this period, its gross margin stood at 44.6%, signaling improved operational efficiency.
High Profit Margins: Although DeepSeek's total revenue remains smaller than US-based giants like OpenAI and Anthropic, it maintains high profit margins by keeping model operational costs low. The company's core API business boasts a gross margin of 82.9%, highlighting its strong competitive edge in cost management.
Pricing Adjustments: To bolster profitability, DeepSeek recently increased its API usage fees. The price for its flagship V4-Pro model was raised significantly, reflecting a strategic shift toward monetization as the company scales its operations and optimizes its infrastructure.
Funding Prospects: Reports indicate that DeepSeek is preparing for a second round of funding with a valuation target of 103 trillion won. The company aims to raise approximately 10 trillion won to accelerate its AI model development and expand its market presence.