Chinese AI startup Moonshot AI has raised over $1bn in a new funding round led by e-commerce giant Alibaba Group and venture capital firm HongShan. 

Beijing-based Moonshot AI, which uses AI to provide solutions for e-commerce businesses, was valued at $2.5bn in its latest funding round.

The company released its chatbot Kimi Chat in October 2023, built from its Moonshot large language model. Moonshot said the chatbot can process up to 200,000 Chinese characters during a conversation with a user. 

Moonshot AI’s latest funding marks the largest single financing round by a Chinese AI startup since generative AI became widely adopted after OpenAI’s ChatGPT launch in 2022.

The US continues to steam ahead in the value of its AI deals, according to GlobalData’s deal database.

In 2023, the value of US AI deals totalled $50bn, growing considerably from 2022 which saw deals total $33bn.

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The value of AI deals in China totalled just $7.9bn in 2023, remaining practically unchanged from 2022 which saw deals total $7.4bn.

GlobalData forecasts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual growth rate (CAGR) of 35% between 2022 and 2030. 

In the generative AI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.