From Bloomberg, August 5:
- Moonshot is valued $3.3 billion after closing the latest round
- The startup also secured fresh funding from Alibaba, Gaorong
Tencent Holdings Ltd. has contributed to a $300-plus million round Chinese generative AI startup Moonshot just closed, emulating its arch-rival Alibaba Group Holding Ltd. in fostering several hopefuls in the highly contested sector.
The fundraising propelled Moonshot’s valuation to $3.3 billion and attracted other investors including Gaorong Capital and existing backer Alibaba, people familiar with the matter said, asking to not be identified discussing private information. The Information earlier reported that Moonshot was seeking investments at a pre-money valuation of $3 billion and had held talks with Tencent.Representatives from Moonshot and Gaorong declined to comment in separate messages. Tencent and Alibaba didn’t respond to emailed requests for comment.
The deal is the latest among a flurry of investments into Chinese AI enterprises, as local big-tech firms and venture capital powerhouses alike have sunk billions of dollars to bankroll a costly battle to fill a ChatGPT-shaped hole in the world’s biggest internet arena.
Among some of the more prominent deals this year, Alibaba in February led a record $1 billion round for Moonshot. Just recently, the Hangzhou-based e-commerce leader together with Tencent provided fresh funding for Moonshot’s Chinese peer Baichuan, which is valued at 20 billion yuan ($2.8 billion).
Founded in March 2023 in Shanghai, Moonshot is one of the six fast-growing Chinese AI startups that are competing to eventually become the equivalent of OpenAI in the world’s second-largest economy. Both Alibaba and Tencent have invested in the majority of the group, dubbed the “Six Little Dragons,” which include Baichuan and MiniMax.
The Six Little Dragons and Their Backers
China's leading AI startups are backed by some of its biggest tech firms....
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