Investors are pouring money into Moonshot AI, an Alibaba-backed startup, pushing its valuation to $4.8 billion. This sharp increase comes just weeks after the company reached $4.3 billion in late December.
Two people familiar with the deal told CNBC that Moonshot is currently closing a new funding round. High investor demand added at least $500 million to the company’s value in a very short time. The sources expect the deal to finish soon. They asked to remain anonymous because the discussions are private. So far, Moonshot AI has not commented on the funding.
The startup gained fame for its chatbot, Kimi. Kimi became a massive hit in China last year, gaining traction months before DeepSeek made global headlines. This early success helped Moonshot stand out as a leader in a crowded field of Chinese tech players.
Several factors are driving this sudden wave of investor excitement. Recently, rival AI firms Zhipu and MiniMax went public in Hong Kong. Since their debut, their market values have soared. Data from Wind Information shows Zhipu is now worth $13 billion, while MiniMax has reached $15.2 billion. Investors see these gains and want to get into Moonshot before it follows a similar path to the stock market.
The unique situation in China also helps these local companies thrive. Beijing blocks U.S. services like OpenAI’s ChatGPT, and the White House has placed growing restrictions on American tech firms doing business in China. These barriers allow Chinese startups to grow without facing direct competition from Silicon Valley.
Big names are already betting heavily on Moonshot’s future. In its previous funding round on December 31, Alibaba, Tencent, and IDG all participated. While Moonshot has not officially announced any plans for an IPO, the sources suggested its valuation could climb even higher in the coming months as interest in Chinese AI continues to build.
