Alibaba Leads Record Deal to Mint 2.5 Billion China AI Firm

Alibaba Group Holding Ltd. led the largest single financing round for a Chinese artificial intelligence startup, the latest in a string of sizable investments that suggest the e-commerce firm is again deploying capital in the hunt for growth. Alibaba joins Tencent Holdings Ltd. and Silicon Valley peers like Microsoft Corp. in placing big bets on generative AI, the technology that powers ChatGPT. It led a 1 billion funding round in Moonshot AI with existing backer Monolith Management, boosting the year-old firm's valuation eight-fold to some 2.5 billion, people familiar with the deal said. They joined previous backers including food delivery giant Meituan's investment arm Long-Z and Hongshan, formerly Sequoia China, the people said, asking not to be identified discussing a private transaction. Founded in March 2023, Moonshot AI is among the better-known startups developing generative artificial intelligence in China, hoping to eventually match the likes of OpenAI and Google.