Prime Highlight
- Alibaba-backed Moonshot AI is being valued at around $4.8 billionin a new funding round, marking an increase of at least $500 million from its December valuation.
- Strong investor demand is driving the round toward a near-term close, reflecting heightened confidence in China’s fast-growing AI industry.
Key Facts
- Moonshot AI is the developer of Kimi, a widely used AI chatbot in China that gained popularity months before rival DeepSeek entered the market.
- The company’s previous funding round, announced on December 31, included investors such as Alibaba, Tencent, and IDG Capital, according to LatePost.
Background
Alibaba-backed artificial intelligence startup Moonshot AI is being valued at around $4.8 billion in a new funding round, according to two people familiar with the matter. The valuation marks an increase of at least $500 million from the company’s previous funding round in December, reflecting growing investor interest in China’s AI sector.
The sources said the round is likely to close soon due to strong demand from investors. They requested anonymity as the discussions involve private information. Moonshot AI did not respond to a request for comment at the time of publication.
Moonshot AI is the company behind Kimi, a popular AI chatbot that gained wide attention in China months before the launch of rival DeepSeek last year. The rising use of Kimi helped strengthen Moonshot’s position in China’s fast-growing AI market.
The company’s earlier funding round was announced on December 31. Investors in that round included IDG Capital, Alibaba, and Tencent, according to Chinese financial news outlet LatePost. Since then, interest in Chinese AI firms has increased, especially after competitors Zhipu and MiniMax went public in Hong Kong and saw strong market performance.
The sources added that Moonshot’s valuation could rise further in future funding rounds, driven by growing interest in Chinese AI companies as potential IPO candidates.
Chinese AI firms have seen rapid growth partly because many U.S.-based AI tools, such as OpenAI’s ChatGPT, are not officially available in mainland China. Beijing continues to restrict access to several U.S. internet services, while American companies face tighter rules from Washington when operating in China.
Among Moonshot’s peers, Zhipu, listed as Knowledge Atlas, had a market value of about $13 billion as of Monday’s close, while MiniMax was valued at around $15.2 billion, according to Wind Information data.
Moonshot AI has not shared any plans related to a public listing.