Moonshot AI closes $500 million Series C to fund Kimi-K3 development and expand computing capacity

Chinese AI startup Moonshot AI, the company behind the Kimi chatbot, has closed a $500 million Series C funding round. The deal values the company at $4.3 billion, according to an exclusive report from LatePost. IDG led the round with $150 million, while existing investors including Alibaba, Tencent, and Wang Huiwen also participated.

CEO Yang Zhilin said in an internal letter that the company now holds more than $1.4 billion in cash. The funds will go toward expanding computing capacity and developing the K3 model. An insider says this cushion means Moonshot AI isn't rushing to go public, unlike Zhipu and MiniMax, two other Chinese AI startups pushing for IPOs. In September, Moonshot AI launched its "OK Computer" agent feature and a subscription model. According to Yang, paying users are growing 170 percent month over month.

This year, Moonshot AI made waves with its Kimi-K2-Thinking model, an open-source reasoning model that held its own against proprietary competitors.