Chinese large-model startup Moonshot AI is close to securing a new U.S. dollar funding round that could lift its valuation to around $4 billion, according to people familiar with the matter.

The prospective deal may raise several hundred million dollars, with interested investors including IDG Capital and Tencent, the people said. Details of the round could still change as talks continue.

Moonshot AI, known in Chinese as “Yue Zhi An Mian,” is one of China’s fastest-growing AI model developers and is considering launching an initial public offering as early as next year, the people added.