DeepSeek, the Chinese AI lab that sent shockwaves through global tech markets when it built a frontier model for a fraction of the typical cost, has reportedly reached an annualized revenue run rate between $400 million and $500 million. That’s roughly double the $200 million to $220 million estimates that circulated in 2025.
From research lab to revenue machine
DeepSeek is backed by High-Flyer, a quantitative hedge fund, and has built its reputation on open-source AI models. The R1 model, which reportedly cost around $6 million to develop in January 2025, triggered what some crypto analysts called an “iPhone moment” for AI agents.
Previous estimates pegged DeepSeek’s daily revenue at roughly $562,000 against daily costs of approximately $87,000, suggesting gross margins north of 500%.
In June 2026, DeepSeek raised over $7.4 billion at a valuation exceeding $50 billion.
