Moonshot Plans $3 Billion Hong Kong IPO Amid AI Boom
Beijing-based startup Moonshot has confidentially submitted its application for an initial public offering in Hong Kong, according to sources. This move is expected to be among the most eagerly awaited listings in the near term by a Chinese AI firm. The developer of the Kimi large language model is seeking to secure $3 billion, according to one source. Moonshot’s latest version, Kimi K3, released in July, has garnered positive reviews and strong demand. Sources indicate that the startup is in discussions with Microsoft, Amazon, and Google regarding revenue-sharing agreements that would enable the U.S. cloud companies to host the model. Any deal could signify the inaugural substantial revenue-sharing agreement between a Chinese AI firm and a prominent U.S. cloud company. Moonshot has been valued at $50 billion in an ongoing funding round, according to sources. That positions it slightly below other significant domestic competitors like DeepSeek, which sources have indicated is valued at approximately $74 billion, and Z.AI, which has a market capitalisation of $66 billion.
The timetable for the IPO is contingent upon regulatory approvals, and financial details, including the proceeds sought, may fluctuate based on prevailing market conditions, according to sources. An IPO from Moonshot contributes to the rapid tempo of capital raising by AI firms worldwide. Claude developer Anthropic is preparing to introduce an offering shortly and aims to finalise its listing by October. Among Chinese firms, Z.AI, previously referred to as Zhipu, and MiniMax have made their debut on the Hong Kong stock exchange this year. Moonshot states that Kimi K3’s 2.8-trillion parameters establish it as the largest open-weight model globally, generating significant demand; however, this has also placed considerable pressure on the startup’s computing resources. The startup was established in 2023 by Yang Zhilin, an AI researcher who completed doctoral studies at Carnegie Mellon University in Pittsburgh.
The company has also attracted attention from senior U.S. officials regarding allegations of utilising restricted Nvidia chips and extracting capabilities from Anthropic’s models. U.S. Treasury Secretary Scott Bessent has indicated the possibility of including it on a trade blacklist. Moonshot has contested assertions that K3’s performance was attained via distillation. To secure regulatory approval, Moonshot has had to dismantle its offshore incorporation structure, commonly referred to as the red-chip structure, and transition to an onshore China domicile prior to the IPO filing, according to sources familiar with the matter. Moonshot investors encompass Alibaba, Tencent, IDG Capital, and HSG, which was previously known as Sequoia Capital China.
In May, the company secured over $2 billion from investors such as Meituan, China Mobile, and the Chinese private equity firm CPE, as indicated by a fundraising document. This brings the total amount raised by the company to over $5.5 billion to date. For the IPO, the company is collaborating with banks such as Goldman Sachs, CICC, and Deutsche Bank. CICC has yet to provide a response to the inquiry for comment. Goldman and Deutsche Bank refrained from providing any commentary. As of mid-August, funds raised through Hong Kong listings reached $41.2 billion, reflecting a substantial increase of 142% year-on-year, predominantly driven by Chinese technology companies, according to LSEG data.
