Alibaba became the leading investor in Chinese AI startups

Moonshot AI, a pioneering generative artificial intelligence startup, has secured a staggering $1 billion in funding. This landmark investment round, spearheaded by Chinese juggernaut Alibaba, also saw contributions from industry titans Microsoft and Tencent, alongside existing investors Monolith Management, Long-Z, and Hongshan.

This substantial influx of capital has propelled Moonshot AI’s valuation to an impressive $2.5 billion, marking an exponential eightfold surge in just one year. Renowned as one of China’s premier AI ventures, Moonshot AI is acclaimed for its cutting-edge Kimi chatbot and its innovative AI application platform.

For Alibaba, this investment signifies a strategic shift aimed at revitalizing the company amidst a two-year economic downturn. According to Alibaba executive Joseph Tsai, half of China’s leading generative AI enterprises leverage Alibaba’s cloud infrastructure, highlighting the synergy between Moonshot AI and Alibaba’s technology ecosystem.