Alibaba-Backed Moonshot AI Sees Valuation Jump After Hong Kong IPO Boom

Moonshot AI, a fast-growing Chinese artificial intelligence startup backed by Alibaba, is closing a fresh funding round that values the company at approximately $4.8 billion, according to people familiar with the matter. That marks a sharp rise from its $4.3 billion valuation just weeks earlier, underscoring renewed momentum in China’s AI sector.

The company is best known for Kimi, an AI chatbot that gained significant traction in China months before the launch of DeepSeek last year. Sources said the latest round has drawn strong demand from investors and is expected to close soon, reflecting growing confidence in leading domestic AI platforms. They added that Moonshot could command an even higher valuation in subsequent rounds if market enthusiasm persists.

The timing of the valuation increase is closely linked to recent public market performances of rival Chinese AI firms. Both Zhipu and MiniMax have surged after listing in Hong Kong, boosting expectations for other high-profile AI startups still in private markets. As of the latest data, Zhipu — listed under the name Knowledge Atlas — carried a market capitalization of about $13 billion, while MiniMax was valued at roughly $15.2 billion, according to Wind Information.

Moonshot’s previous funding round was announced on Dec. 31, with participation from Alibaba as well as other major backers including Tencent and IDG, according to Chinese media reports. The startup has not publicly disclosed any plans to pursue an initial public offering, and it did not respond to requests for comment on the latest fundraising.

Investor interest in Chinese AI companies has intensified as U.S.-based AI services such as OpenAI’s ChatGPT remain unavailable in mainland China. At the same time, Beijing’s restrictions on foreign internet platforms and Washington’s tightening controls on U.S. firms doing business with China have accelerated demand for domestic alternatives. That dynamic has positioned companies like Moonshot AI as key beneficiaries of both policy tailwinds and capital market momentum.