Chinese AI startup Moonshot, maker of the Kimi chatbot, is seeking a $10 billion valuation in an expanded funding round backed by Alibaba and Tencent — more than doubling its $4.3 billion valuation from just a month ago.
Alibaba, Tencent, and 5Y Capital have committed over $700 million to the first tranche of Moonshot’s latest round, according to people familiar with the matter. The Beijing-based company began discussions in late January, roughly a month after closing a $500 million raise at a $4.3 billion valuation.
Moonshot’s Kimi chatbot has emerged as one of China’s most popular AI assistants, competing directly with products from Baidu, Zhipu, and Minimax. The aggressive re-raise signals intensifying investor appetite for Chinese AI model companies, even as U.S.-China tech tensions persist and export controls tighten access to advanced chips.
China’s AI Startup Race
Even at $10 billion, Moonshot would trail domestic rivals. Both Zhipu and Minimax Group are valued above $29 billion following Hong Kong IPOs this year that collectively raised over $1 billion. The wave of Chinese AI listings reflects a market eager to back domestic alternatives to OpenAI and Anthropic, particularly as geopolitical pressures push China toward AI self-sufficiency.
The round remains in progress, and it’s uncertain whether Moonshot will reach the $10 billion target. Representatives of Moonshot, Alibaba, and 5Y Capital did not respond to requests for comment. A Tencent spokesperson declined to comment.
What’s Next
If successful, the raise would cement Moonshot among China’s top-tier AI startups and provide capital to scale Kimi against increasingly well-funded competitors. Watch for a potential Hong Kong IPO filing later this year as the company follows the Zhipu-Minimax playbook.
⚡ Why it matters: Moonshot’s valuation leap from $4.3B to a $10B target in one month underscores the frenzy around Chinese AI model companies — and the growing divergence between U.S. and Chinese AI ecosystems.
📊 By the numbers:
- $10B — Target valuation (up from $4.3B in December)
- $700M+ — First tranche committed by Alibaba, Tencent, 5Y Capital
- $500M — Previous round closed ~1 month ago
- $29B+ — Valuations of rivals Zhipu and Minimax post-IPO
- $1B+ — Combined Hong Kong IPO raises by Zhipu and Minimax
🔗 Source: MKTNews / Bloomberg
⚙️ This article was generated with AI assistance and reviewed for accuracy.
