Moonshot AI Backed by Alibaba Sees Valuation Rise to $4.8 Billion Amid Strong Investor Demand

As per Bloomberg report, Moonshot AI, the Chinese startup supported by Alibaba, has experienced a significant increase in its valuation.  

The company has been valued at $4.8 billion in its latest funding round, up from $4.3 billion just weeks earlier. This rise comes amid rising enthusiasm for Chinese artificial intelligence companies. 

Moonshot AI Valuation Climbs to $4.8 Billion 

The fresh valuation of $4.8 billion reflects a $500 million increase from Moonshot AI's previous round in December. The company is known for its chatbot Kimi, which gained attention in China before the launch of DeepSeek.  

As per report, the financing deal cited strong investor interest as a driving force behind the higher valuation. The funding round is expected to close soon. 

Participation by Key Investors 

Moonshot AI's prior round on December 31 included backing from major entities such as IDG, Alibaba, and Tencent, reported by Chinese financial outlet LatePost.  

The company's latest progress coincides with a favourable environment for local AI firms, as access to US-based platforms like ChatGPT remains restricted in mainland China. This has encouraged local innovation and investment momentum within China's AI development sector. 

Rival Companies Fuel Sector Momentum 

Moonshot AI's upward valuation trend has gained more relevance as rivals like Zhipu and MiniMax reached notable levels after going public in Hong Kong.  

As of the recent market close, Zhipu (listed under the name Knowledge Atlas) had a value of $13 billion, while MiniMax recorded $15.2 billion, according to Wind Information. 

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High Interest in Chinese AI Firms 

The increased attention towards Chinese AI firms stems partly from the unavailability of American chatbots in China due to governmental restrictions.  

This policy landscape has created a favourable setting for domestic AI development. Moonshot AI has not officially stated any IPO plans so far. 

Conclusion 

Moonshot AI’s valuation increase from $4.3 billion to $4.8 billion illustrates continued investor confidence and strong momentum in China’s AI sector. With high-profile backers and growing demand, companies like Moonshot AI are gaining traction in the technology funding ecosystem. 

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