Reports on October 6, 2026, described two major bets on China’s AI labs: Moonshot AI had completed a private round at a valuation of about $50 billion, while DeepSeek was nearing a funding round worth at least 80 billion yuan. Together, the deals point to substantial investor appetite—but they do not prove how public-market investors will value either company. The IPOs were still prospective, and regulatory scrutiny added uncertainty.
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What the fundraising reports say
Moonshot AI, the Beijing-based company behind Kimi, reportedly closed its latest private round at about $50 billion, up from a reported $31.5 billion valuation in a summer round. It was considering a Hong Kong IPO in the first quarter of 2027 that could raise as much as $5 billion. Earlier reports had put the possible offering at around $3 billion, underscoring that the size and timing were not settled.
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DeepSeek’s reported raise was also growing beyond its initial ambitions. The Hangzhou-based lab was said to be seeking at least 80 billion yuan, with the round potentially reaching 100 billion yuan, compared with an initial target of roughly 50 billion yuan. Reuters reported that the fundraising was aimed at building capital ahead of a possible domestic IPO; the cited report did not establish an offering date or size.
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What the numbers signal—and what they don’t
The reported scale of both deals suggests investors are willing to commit significant private capital to leading Chinese AI developers. For Moonshot, reports also pointed to commercial momentum: its annual recurring revenue was said to have risen from $300 million in June to about $1 billion, with $2 billion projected by December. That final figure was a forecast, not reported revenue already earned.
But a private-round valuation and a prospective fundraising target are not the same as a public-market price. Moonshot’s reported $50 billion valuation came from private financing, while the proposed IPO size and timing remained under discussion. DeepSeek’s larger-than-planned round likewise indicates reported fundraising demand, not the outcome of a public listing.
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Hong Kong had already seen January listings by Chinese AI companies Zhipu and MiniMax, offering recent precedents for AI firms seeking public-market capital. Those debuts do not guarantee the same reception for Moonshot or DeepSeek.
Data-security scrutiny is a key caveat
The investment picture also carried regulatory risk. China’s internet regulator was reportedly investigating Moonshot and DeepSeek after Anthropic alleged that the companies routed sensitive user data to its Claude models. Anthropic also accused Chinese AI labs of using Claude’s outputs to train their own systems.
Those were allegations and a reported investigation—not findings that either company had broken the law. Reports said the investigation’s effect on valuations and listing schedules was unclear, leaving the IPO plans subject to change.
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The takeaway
The reported rounds show investors placing large private bets on Moonshot AI and DeepSeek. The clearest evidence of appetite is the scale of Moonshot’s completed round and the reported expansion of DeepSeek’s target. Whether that enthusiasm carries into public listings remains an open question, especially while offering details are unsettled and the data-security investigation continues.