DeepSeek generated about RMB 475 million in revenue in the first seven months of this year, nearly 10 times its full-year revenue last year, according to people familiar with the matter. The company also recorded a net loss of about RMB 715 million over the same period. DeepSeek is reportedly in talks with existing and potential new investors for a second round of financing, seeking to raise RMB 5 billion at a target valuation of RMB 50 billion. Its overall gross margin in the first seven months was 44.6%, while the API business gross margin reached 82.9%.