Alibaba Backed Moonshot AI Valuation Reaches $4.8 Billion in New Funding Round

TLDR

• Moonshot AI’s valuation jumped to $4.8 billion from $4.3 billion in December, a $500 million increase in just weeks
• The Chinese AI startup behind Kimi chatbot is closing a new funding round with backing from Alibaba, Tencent, and IDG Capital
• Rival Chinese AI companies Zhipu and MiniMax recently went public in Hong Kong with market caps of $13 billion and $15.2 billion respectively
• U.S. AI chatbots like ChatGPT remain officially unavailable in mainland China due to Beijing’s internet restrictions
• Sources say Moonshot could see even higher valuations in future rounds but has not announced IPO plans

Moonshot AI is closing a funding round that values the Chinese AI startup at $4.8 billion, according to two people with knowledge of the deal. The valuation represents a $500 million increase from the company’s December funding round.

The startup is backed by major Chinese tech companies including Alibaba and Tencent. Moonshot AI is the company behind Kimi, a chatbot that became popular in China before DeepSeek’s release last year.

The new funding round is expected to close soon due to high demand from investors. Both sources asked to remain anonymous while discussing private information. Moonshot AI had not responded to a request for comment.

The valuation increase comes just weeks after Moonshot’s previous funding round on December 31. That round included participation from IDG Capital, Alibaba, and Tencent, according to Chinese financial news outlet LatePost.

The sources told CNBC that Moonshot could be valued even higher in subsequent rounds. They cited a surge of interest in Chinese AI IPO candidates as the reason for continued investor demand.

Chinese AI Rivals Hit Public Markets

Two rival Chinese AI companies recently went public in Hong Kong. Zhipu, listed under the name Knowledge Atlas, had a market value of $13 billion as of Monday’s close, according to Wind Information data.

MiniMax was worth $15.2 billion, the data showed. The successful public offerings by these companies appear to have boosted investor interest in other Chinese AI startups.

Chinese AI companies have grown rapidly as U.S. AI chatbots face restrictions in mainland China. OpenAI’s ChatGPT is not officially available in the country.

Beijing restricts access to many U.S.-based internet services. American companies have also faced growing restrictions from the White House on doing business with China.

Kimi Chatbot Gains Users

Kimi gained traction in China months before DeepSeek’s release. The chatbot offers conversational AI capabilities to users in a market where major U.S. competitors cannot officially operate.

Moonshot AI has not commented on any plans for an initial public offering. The company declined to provide a statement when contacted by CNBC.

The startup’s investors include some of China’s largest technology companies. Alibaba operates major cloud computing and e-commerce platforms in China.

Tencent runs popular social media and gaming services. IDG Capital is a venture capital firm that has invested in numerous Chinese technology companies.

The sources said investor demand for the current round has been strong. They expect the funding to close in the near future based on the level of interest.

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