China AI Startup Moonshot Targets $10 Billion Valuation

Moonshot is targeting a valuation of $10 billion in an expansion of a funding round already backed by Alibaba Group Holding Ltd. and Tencent Holdings Ltd., seeking to tap strong interest in Chinese startups creating AI models to rival Silicon Valley’s best.

The company behind the Kimi chatbot kicked off discussions in late January around additional financing to satisfy demand from investors, people familiar with the matter said, just about a month after securing $500 million in funding at a $4.3 billion valuation. Existing backers including Alibaba, Tencent and 5Y Capital have already committed more than $700 million to the first tranche of the latest round, according to the people, who asked not to be named discussing private information.