Moonshot AI, an Alibaba-backed artificial intelligence startup, is now valued at $4.8 billion, according to two sources familiar with the company.
This marks a $500 million increase from its previous valuation of $4.3 billion just weeks earlier.
The latest funding round for Moonshot AI is expected to close soon due to strong demand from investors.
The last funding round was announced on December 31, 2022, and included participation from major players like IDG, Alibaba, and Tencent.
The increase in Moonshot AI's valuation follows the successful initial public offerings (IPOs) of rival companies Zhipu and MiniMax in Hong Kong earlier this year.
As of Monday's market close, Zhipu, which is also known as Knowledge Atlas, had a market value of $13 billion. Meanwhile, MiniMax was valued at $15.2 billion.
The heightened interest in Moonshot AI is largely attributed to the growing demand for Chinese AI companies. U.S. AI chatbots, like OpenAI's ChatGPT, are not available in mainland China due to government restrictions.
This situation has created a unique opportunity for local AI firms to thrive, as they cater to a market that lacks access to popular U.S. solutions.
While Moonshot AI has not commented on any plans for an IPO, the sources mentioned that the company could see an even higher valuation in future funding rounds.
This optimism reflects the overall surge of interest in Chinese AI IPO candidates, especially as the landscape continues to evolve.
