China’s Moonshot plans IPO in 6 months after AI breakthrough

BEIJING – Moonshot AI has told investors it is preparing to list in as early as within six months, seizing the opportunity to tap capital markets after its latest model upended industry perceptions of China’s burgeoning capabilities and sent global tech stocks reeling.

The Chinese artificial intelligence pioneer has officially distributed the shareholder resolution to its investors, seeking the blessing of its backers for a Hong Kong listing, sources familiar with the matter said. The initiation of the notification process indicates the IPO could happen as soon as within the next half a year.

Moonshot is now in the process of wrapping up a fund-raising round that may value the three-year-old start-up at more than US$30 billion (S$38.74 billion), the sources said. 

The start-up judged the time was right after annual recurring revenue – a gauge of future sales – hit US$300 million in June, they said, asking to remain unidentified because they were discussing a private deal.

Moonshot achieved US$200 million in annual recurring revenue in April, Bloomberg News has reported. 

Moonshot had been preparing to pull the trigger on its debut before the release of the Kimi K3 last week, a more advanced open-weight model that it said outperforms all rivals except Anthropic’s Claude Fable 5 and OpenAI’s GPT-5.6 on overall capability.

Many observers were impressed by the capability and size – at 2.8 trillion parameters – for an open-weight model, meaning its parameters are available for users to download and customise.

An initial public offering would mark a milestone for the fast-growing start-up co-founded in early 2023 by Yang Zhilin, a former Tsinghua University professor who previously worked at Meta Platforms and Alphabet’s Google.

The company is called the Dark Side Of The Moon in Chinese, after Yang’s favourite Pink Floyd album.

Moonshot started considering a listing in Hong Kong earlier in 2026, and has held talks with China International Capital Corp and Goldman Sachs Group about working on an offering, Bloomberg News has reported.

China’s PEdaily reported on the potential timing for Moonshot’s listing on July 18. 

Since inception, the the Beijing-based start-up had operated in the shadow of better-known names such as DeepSeek – which itself roiled Silicon Valley with a powerful model in 2025.

But it has remained at the forefront of Chinese industry development alongside aggressive labs such as Alibaba Group Holding’s Qwen, MiniMax Group and Z.AI.

Moonshot has begun the process of dismantling what is known as a “red chip” structure, a requirement for a smoother overseas listing process.

Representatives for Moonshot did not respond to requests for comment outside of regular business hours.

The start-up’s breakthrough underscored how rapidly China’s AI race is evolving beyond competing on price alone.

Artificial Analysis ranked Kimi K3 ahead of Anthropic’s Opus 4.8 on some frontier benchmarks, making it the first Chinese open-weight model to achieve that milestone. 

Kimi K3 was priced at roughly the same level as Anthropic’s Sonnet, signalling that Moonshot believes it can charge a premium over other Chinese models given the product’s capabilities.

The company is selling tiered subscription plans for its chatbot and offers its underlying technology to enterprise clients.

It recently launched a general-purpose AI agent, called Kimi Work.

Overall, its business remains smaller than the likes of Z.AI, which is on track for US$1 billion in annual sales.

Moonshot is racing towards markets as Beijing steps up support for domestic AI development, with President Xi Jinping hailing China’s advances in low-cost AI while calling for a more open global technological order. 

DeepSeek is planning an IPO in 2027 while also seeking a second round of capital from investors, giving it a bigger war chest with which to develop AI services and offer them globally at prices far below its US rivals. BLOOMBERG