DeepSeek raises $7.4 billion in latest funding round at $74 billion valuation

Chinese artificial-intelligence start-up DeepSeek is closing a new funding round that values the company at about $74 billion, The Wall Street Journal reported. The round is expected to raise approximately $7.4 billion, with proceeds earmarked for research and development as well as expansion of computing infrastructure.

DeepSeek’s annual recurring revenue has reached $500 million, according to sources cited by the newspaper. The figure is described as a positive signal ahead of the company’s planned initial public offering, which DeepSeek aims to list on the Shanghai Stock Exchange in 2027.

Investors in the new round include returning backers Monolith and Shixiang Capital, along with battery maker CATL. New participants include CPE, Legend Capital and Stony Creek Capital. DeepSeek’s annual recurring revenue figure, known as ARR, now stands at $500 million, sources told the Journal.

The company’s valuation has surged fivefold in two months, rising from $10 billion in April to more than $50 billion in June and now to about $74 billion. In June 2026, DeepSeek closed its first funding round, raising $7.4 billion at a valuation above $50 billion, making it China’s most valuable AI start-up at the time.

DeepSeek’s founder contributed $3 billion of personal funds to the company, and Tencent, the developer of the popular WeChat messenger, invested about $1.5 billion. CATL put in $735 million, while the National AI Investment Fund (NIIR) contributed $150 million and secured voting rights. The founder retained full control after the June round by directing investors into a holding company under his control, restricting share sales for five years except for NIIR.

Reported by RB.ru.