Moonshot AI, a company backed by e‑commerce giant Alibaba Group, today unveiled its newest artificial intelligence model, Kimi K2.5. The launch shows that the domestic race against rival startup DeepSeek and other global AI challengers has reached a new climax.
Moonshot announced the launch of Kimi K2.5, its most advanced model yet, introducing a native multimodal architecture that processes text, images, and video in a single system. Meanwhile, it is worth noting that this update reflects a surging trend of omni models, led by key players in the tech industry, such as OpenAI and Google’s Alphabet Inc.
Moonshot launches AI as Chinese firms rally to upgrade models
The new version of Moonshot’s Kimi is one of the several upgrades launched over the last month. With this finding, sources noted that major AI firms in China are scrambling to get ahead of DeepSeek’s impending announcement. Regarding its upcoming announcement, sources acknowledged that DeepSeek has been hinting at a major launch lately.
Moreover, the Chinese artificial intelligence company’s research lab shared key publications from prominent team members, including its CEO, Liang Wenfeng, and code on GitHub, a premier cloud-based, Microsoft-owned platform. In the meantime, reports revealed that Moonshot secured around $500 million in December last year from its significant supporters.
It included Alibaba and IDG Capital, demonstrating renewed investor interest in high-growth, technology-driven ventures. Furthermore, the company reached a $4.3 billion valuation through this deal. On the other hand, sources with knowledge of the situation noted that Moonshot planned to release an enhanced version of its primary model at a time when demand for AI is surging.
Therefore, to cope with this escalating demand, the AI startup initiated new funding rounds targeting a $5 billion valuation. This was after key Chinese AI rivals Zhipu and MiniMax Group Inc. announced in early January 2026 the successful introduction of their initial public offerings (IPOs) on the Hong Kong Stock Exchange (HKEX). Collectively, they raised more than $1 billion in the Special Administrative Regions of China.
Following their strategic approach to operations, Moonshot, Zhipu, and MiniMax Group Inc. are ranked among the top Chinese large language model developers, a competition once called the “War of One Hundred Models.” Nonetheless, analysts alleged that many smaller firms have struggled to implement necessary technology enhancements and secure adequate funding after DeepSeek’s R1 model reached key milestones at the start of 2025.
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