Chinese artificial intelligence startup Moonshot AI is seeking a valuation of around $10 billion as part of a new or expanded funding round, sources disclosed, underscoring the rapid rise of domestic generative AI firms in China.
The talks come just weeks after Moonshot completed a financing round that raised about $500 million, valuing the company at roughly $4 billion to $4.5 billion, the sources said. The new target valuation would more than double that figure, although the terms are still under discussion and could change depending on investor demand and market conditions.
Moonshot AI is best known for Kimi, its large language model and chatbot, which has gained popularity in China for its ability to process long texts and perform advanced reasoning tasks. The company is positioning itself as a leading local alternative to U.S.-developed AI models amid geopolitical tensions and technology restrictions that are accelerating China’s push for homegrown innovation.
Existing investors are reportedly involved in the latest talks, including major Chinese technology groups such as Alibaba Group and Tencent Holdings, both of which have been active backers of AI startups aligned with China’s strategic technology priorities. One person familiar with the matter said investor interest remains strong, reflecting confidence in Moonshot’s technology and growth trajectory.
“Moonshot is seen as one of the most promising large-model developers in China,” one source said. “The company has moved quickly in terms of product development and user adoption, which is driving the valuation expectations.”
Founded in Beijing, Moonshot has expanded rapidly since launching its core models, benefiting from heavy investment across China’s AI ecosystem. The company has been using fresh capital to scale computing infrastructure, hire AI researchers, and improve model performance as competition intensifies among domestic rivals.
The push for a higher valuation also reflects broader momentum in China’s generative AI sector, where investors are continuing to deploy capital despite a more cautious global funding environment. Analysts say companies with strong technical capabilities and backing from major platforms are better positioned to attract funding at premium valuations.
A spokesperson for Moonshot AI declined to comment on the fundraising discussions or the valuation target.
If completed at the proposed level, the deal would place Moonshot among the most valuable privately held AI startups in China, highlighting the country’s determination to build globally competitive AI firms amid an increasingly fragmented international technology landscape.
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