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

Moonshot AI has told investors it’s preparing to list in as early as 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 AI pioneer has officially distributed the shareholder resolution to its investors, seeking the blessing of its backers on a Hong Kong listing, people familiar with the matter said. The initiation of the notification process indicates an IPO could happen as soon as within the next half a year.

Moonshot is now in the process of wrapping a fundraising round that may value the three-year-old startup at more than $30 billion, the people said. 

The startup judged the time was right after annual recurring revenue — a gauge of future sales — hit $300 million in June, they said, asking to remain unidentified discussing a private deal. Moonshot achieved $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 for 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 customize.

An IPO would mark a milestone for the fast-growing startup co-founded in early 2023 by Yang Zhilin, a former Tsinghua University professor who previously worked at Meta Platforms Inc. and Alphabet Inc.’s Google. The startup is called the Dark Side of the Moon in Chinese, after Yang’s favorite Pink Floyd album.

The Beijing-based startup started considering a listing in Hong Kong earlier this year, and has held talks with China International Capital Corp. and Goldman Sachs Group Inc. about working on an offering, Bloomberg News has reported. China’s PEdaily reported on the potential timing for Moonshot’s listing on Saturday. 

Since inception, the company 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’s remained at the forefront of Chinese industry development alongside aggressive labs such as Alibaba Group Holding Ltd.’s Qwen, MiniMax Group Inc. and Z.AI.

Moonshot has begun the process of dismantling what’s known as a “red chip” structure, a requirement for a smoother overseas listing process. Representatives for Moonshot didn’t respond to requests for comment outside of regular business hours.

The startup’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 Anthropic Sonnet levels, signaling Moonshot believes it can charge a premium to 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 $1 billion of annual sales.

Moonshot is racing toward 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 even while seeking a second round of capital from investors, giving it a bigger war chest to develop AI services and offer them globally at prices far below US rivals.

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