Kimi developer Moonshot AI valued at US$20b as it navigates China’s new IPO rules

Moonshot AI, the Beijing-based developer of the Kimi chatbot, has secured $2 billion in new funding, elevating its valuation to over $20 billion as it prepares for China’s revised IPO regulations. The round was led by Long-Z Investments and included participation from Meituan’s venture arm and China Mobile, bringing Moonshot’s total funding to $3.9 billion in the last six months, according to HF Capital. The company reported annual recurring revenue (ARR) exceeding $200 million in April, a figure that underscores its rapid growth in the AI sector. Comparatively, U.S.-based Anthropic recently surpassed $30 billion in ARR, highlighting Moonshot’s potential but also the competitive gap in valuation, as its $20 billion figure remains below Hong Kong-listed peers like Zhipu AI (Knowledge Atlas Technology) and MiniMax, which have market caps of $55.5 billion and $257 billion, respectively. Moonshot’s offshore holding structure, registered in the Cayman Islands, complicates its plans for a Hong Kong IPO under Beijing’s new rules. The China Securities Regulatory Commission now requires companies with offshore entities to either restructure or justify their structure, pushing firms like Moonshot and StepFun to reconsider their listing strategies. A source close to Moonshot confirmed the company is evaluating restructuring but has not yet finalized a decision. The funding round signals confidence in Moonshot’s ability to scale despite regulatory hurdles, particularly as China tightens oversight on overseas-listed firms. The company’s focus on Kimi, a chatbot competing in a crowded AI space, will be critical in sustaining growth and meeting investor expectations amid evolving market conditions.