Moonshot AI is reorganizing its corporate structure and bringing in several state-backed investors as it seeks regulatory approval for a Hong Kong initial public offering, according to the Financial Times.
The report said the Chinese AI startup's Kimi K3 model has recently narrowed the performance gap with Anthropic's leading model and has gained traction among developers. Moonshot AI plans to use IPO proceeds to fund the next phase of large-model research and business expansion.
Red-chip structure may need to be unwound
Before a listing can move ahead, Moonshot AI may need to dismantle its existing red-chip structure. Its core business had previously been controlled by offshore entities, and the company raised U.S. dollar funding from overseas investors. Chinese regulators have placed restrictions on offshore listings by some technology companies with overseas structures, which has pushed a number of AI firms, including Moonshot AI and StepFun, to pause IPO preparations.
The Financial Times report said Moonshot AI changed its mainland China entity from a limited liability company into a joint-stock company last week, a step viewed as important in advancing the listing process.
Transfer of offshore investor holdings still unresolved
Moonshot AI is now working with investment banks and legal advisers to address the transfer of offshore investor stakes. One investor said the company recently told shareholders that adjustments to the offshore entity structure are still under way and that it has not yet decided how overseas shareholder interests will be shifted into the onshore entity.
Possible options include having overseas investors establish onshore investment vehicles to hold shares, or selling offshore shares first and then subscribing to shares in the domestic entity. The report said both paths involve lengthy approval procedures.
Two recent funding rounds
On financing, Moonshot AI recently completed two funding rounds. One valued the company at about $30 billion, while another is expected to bring its valuation to $50 billion after completion.
The company had previously attracted investment from state-backed institutions including the National AI Industry Investment Fund. Its latest shareholder roster also includes the National Social Security Fund, local government guidance funds from Shanghai and Guizhou, and an investment vehicle under People's Daily.
Company denied earlier filing rumor
BlockBeats previously reported on Aug. 3 that market chatter had claimed Moonshot AI could submit its Hong Kong IPO application as early as this month and might seek to raise about $3 billion. Moonshot AI responded at the time that the claim was inaccurate.