Alibaba-backed startup Moonshot AI climbs $500 million in value, sources say

In a remarkable development, Moonshot AI, an artificial intelligence startup backed by Alibaba, has seen its valuation soar to $4.8 billion following a recent funding round. This marks a significant increase from its previous valuation of $4.3 billion just weeks earlier, according to sources familiar with the situation. The company, well-known for its popular Kimi chatbot, gained traction in China prior to the launch of DeepSeek last year. Following the December funding round, rival AI firms in China, such as Zhipu and MiniMax, also experienced significant growth after going public in Hong Kong. Insiders indicated that Moonshot AI is closing in on a funding round expected to elevate its valuation by at least $500 million compared to the last round. The demand for investment is reportedly high, prompting a swift conclusion of this funding phase. The sources, preferring to remain anonymous due to the confidential nature of the discussions, noted that Moonshot AI had not provided any official comment at the time this news was reported. Interestingly, as interest in Chinese AI IPO candidates intensifies, Moonshot AI could see its valuation rise even further in future funding rounds. The surge in the success of Chinese AI companies comes at a time when U.S.-developed AI chatbots, including OpenAI's ChatGPT, remain inaccessible in mainland China due to government restrictions on foreign internet services. Moonshot AI's previous funding round, announced on December 31, saw participation from notable investors including IDG, Alibaba, and Tencent, as reported by the Chinese financial outlet LatePost. As of the latest data, Zhipu, which trades under the name Knowledge Atlas, boasts a market value of $13 billion, while MiniMax stands at $15.2 billion.