An Alibaba-backed AI startup, Moonshot AI, is set to be valued at $4.8 billion in its latest funding round, according to sources familiar with the deal, up from a $4.3 billion valuation just weeks ago, CNBC reported.

Moonshot AI, the developer of the Kimi chatbot, gained significant popularity in China months before the launch of DeepSeek last year.

Following Moonshot’s December funding round, rival Chinese AI companies Zhipu and MiniMax saw notable surges after their Hong Kong IPOs.

Sources said that the current funding round is expected to close soon due to strong investor demand, and could raise Moonshot’s valuation by at least $500 million compared with the previous round.

The sources, who requested anonymity due to the private nature of the discussions, added that Moonshot AI’s valuation could rise even further in subsequent rounds as interest in Chinese AI IPOs continues to grow.