AI startup Moonshot secures major funding, Tencent involved
Moonshot is one of China’s ‘Six Little Dragons’ AI startups.
Tencent has participated in a $300 million financing round for the Chinese AI startup Moonshot, boosting the company’s valuation to $3.3 billion. The investment aligns with the strategy of Alibaba, another major tech company, which is also backing promising AI ventures. Gaorong Capital and existing investor Alibaba also took part in this funding round.
Moonshot, founded in Shanghai in March 2023, is one of the ‘Six Little Dragons,’ a group of rapidly growing Chinese AI startups aiming to compete with the likes of OpenAI in the US. Earlier this year, Alibaba led a $1 billion funding round for Moonshot. Both Alibaba and Tencent hold stakes in most of these six companies, which include Baichuan and MiniMax.
Recent months have seen significant capital inflows into Chinese AI firms, with major companies and venture capitalists investing heavily to establish a strong presence in the AI market. Baichuan, another member of the ‘Six Little Dragons,’ recently completed a funding round, securing approximately 5 billion yuan with contributions from Alibaba, Tencent, Xiaomi, and other notable investors.
China has launched a $40 billion state investment fund to boost its semiconductor industry, a move aimed at countering US restrictions on semiconductor exports. The fund is part of a broader effort to enhance domestic AI development and secure a leading position in the global AI market.
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