TECH

Moonshot AI Rules Out Quick IPO After Raising $500 Million

Published: Jan. 1, 2026 1:21 a.m. GMT+8

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Yang Zhilin. Photo: VCG

Chinese artificial intelligence firm Moonshot AI is in no rush to go public, its founder said, after closing a major new round of fundraising that strengthens its balance sheet even as rivals prepare to list in Hong Kong.

In an internal letter dated Dec. 31, founder Yang Zhilin said the company had completed a significantly oversubscribed Series C round, raising $500 million. Moonshot AI now holds more than 10 billion yuan ($1.4 billion) in cash, he wrote.

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Moonshot AI raised $500 million in an oversubscribed Series C round, now holding over $1.4 billion in cash, and is not planning a public listing soon.
The company will use new funds to buy AI chips, accelerate K3 model development, and focus on commercialization and revenue growth.
Rival firms Zhipu AI and MiniMax are seeking Hong Kong IPOs, while other major AI startups are pursuing specialized niches.

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Who’s Who

Moonshot AI: Moonshot AI, a Chinese AI firm, recently secured $500 million in a Series C funding round, bringing its cash reserves to over $1.4 billion. Unlike rivals preparing for IPOs, Moonshot AI prioritizes raising capital from the primary market. The company plans to use the new funds to acquire AI chips and accelerate the development of its next-generation foundational model, K3, aiming for global leadership in pretraining performance by 2026.

Zhipu AI: Zhipu AI is a leading artificial intelligence firm in China. It is one of Moonshot AI's major competitors and a player in China's AI scene. Unlike Moonshot AI, Zhipu AI filed for an initial public offering in Hong Kong in mid-December. This highlights a contrasting strategy for securing capital among China's top AI developers. Zhipu AI was also once grouped among China's "Six AI Tigers."

MiniMax: MiniMax is a leading AI firm in China that is pursuing a different strategy from Moonshot AI regarding fundraising. Alongside Zhipu AI, MiniMax filed for an initial public offering in Hong Kong in mid-December. This move highlights a contrasting approach among China's top AI developers in securing capital for building advanced foundational models.

Baichuan Intelligent Technology: Baichuan Intelligent Technology, founded by Wang Xiaochuan, is one of China's "Six AI Tigers." It has shifted its focus to artificial intelligence applications within the healthcare sector.

01.AI: 01.AI, founded by investor Kai-Fu Lee, has specialized in legal and gaming-sector AI solutions since pivoting in mid-2024. This change in focus distinguishes it from other Chinese AI firms concentrating on foundational models or broad applications.

DeepSeek: DeepSeek is a rival AI model that was released in early 2025. Its emergence highlighted the importance of core technology in AI development. The "buzz around DeepSeek" demonstrated that a strong foundational model can generate significant brand awareness, influencing Moonshot AI to refocus its efforts on foundational model development.

Perplexity: Perplexity, an AI search app, has integrated Moonshot AI's K2 series models. These models, launched in 2025, have gained international traction and are being used by various AI platforms and startups.

Genspark: Genspark is an AI agent startup that has integrated Moonshot AI's K2 series models. Moonshot AI's K2 series, launched in 2025, has gained international traction and been adopted by various platforms and startups, including Genspark.

Vercel: Vercel is a cloud platform that has integrated Moonshot AI's K2 series models. These models, developed by the Chinese AI firm Moonshot AI, gained international traction in 2025 and are utilized by various platforms and applications.

YouWare: YouWare is a coding assistant that has integrated Moonshot AI's K2 series of models. The K2 series models were launched in 2025 and have gained international traction, being utilized by various AI applications and platforms.

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What Happened When

Mid-2024：: 01.AI, founded by Kai-Fu Lee, pivoted to specialize in legal and gaming-sector AI solutions.

Early 2025：: DeepSeek, a rival model, was released, highlighting the importance of core technology.

2025：: Moonshot AI launched its K2 series of models, which gained international traction.

Mid-December 2025：: Zhipu AI and MiniMax filed for initial public offerings in Hong Kong.

December 31, 2025：: Moonshot AI's founder Yang Zhilin announced the completion of a significantly oversubscribed Series C round, raising $500 million.

AI generated, for reference only