Chinese AI startup Moonshot AI, the developer of the Kimi chatbot, announced the completion of a $500 million Series C funding round on January 1, 2026. Led by IDG Capital with a $150 million investment, the round also saw participation from existing backers including Alibaba, Tencent, and Wang Huiwen. The company is now valued at $4.3 billion and has over $1.4 billion in cash reserves. CEO Yang Zhilin stated that the funds will be used to expand computing capacity and develop the next - generation Kimi - K3 model. Moonshot AI’s paid user base is growing at a rate of 170% month - over - month, and it has no immediate plans for an IPO.