The Dark Side of the Moon financing valuation rises to $4.8 billion, with continued high enthusiasm for AI company funding

The Dark Side of the Moon (Kimi) raises funding at a new high valuation. According to the latest news, this AI company is finalizing a new round of financing with a pre-money valuation of $4.8 billion, up from $4.3 billion a few weeks ago. The funding is expected to be completed shortly. This marks the second financing move by The Dark Side of the Moon within just three weeks and also reflects the ongoing high enthusiasm for funding in the current AI sector.

Accelerated Funding Progress and Steady Valuation Growth

Strategic Intent Behind Intensive Financing

The pace of funding for The Dark Side of the Moon warrants attention. On December 31, 2025, the company disclosed the completion of a $500 million Series C funding round, with a post-money valuation of $4.3 billion, led by IDG with $150 million, and oversubscriptions from existing shareholders such as Alibaba, Tencent, and Wang Huiwen. Just three weeks later, a new round of financing is about to commence, with the pre-money valuation rising to $4.8 billion.

This rapid financing progress indicates two key signals: first, investors’ continued confidence in the business prospects of The Dark Side of the Moon; second, the company has gained considerable bargaining power in the capital market. The valuation jump from $4.3 billion to $4.8 billion, while not large in percentage terms, is uncommon to achieve in such a short period.

Sufficient Cash Reserves and Flexible Strategic Choices

Yang Zhilin, founder and CEO of The Dark Side of the Moon, revealed in an internal letter after the completion of the Series C funding that the company has over RMB 10 billion in cash reserves. This scale is quite substantial.

Ample cash reserves mean The Dark Side of the Moon has full strategic flexibility. Such financial strength allows the company to “not rush to IPO,” enabling a greater focus on product iteration and market expansion without being driven by funding schedules or capital pressures.

Continued Surge in AI Industry Funding Enthusiasm

Significant Increase in Overall Valuation Thresholds

The funding progress of The Dark Side of the Moon is a microcosm of the current AI industry’s overall prosperity. According to the Hurun Research Institute’s release of the “2025 Hurun China Top 50 Artificial Intelligence Companies” list, the threshold valuation for inclusion is RMB 9.5 billion, an increase of RMB 3.5 billion from the previous year; the top ten companies have thresholds reaching RMB 73 billion, more than tripling.

What does this data indicate? The overall valuation of AI companies is rapidly rising, and high-quality firms within the industry are gaining greater capital recognition. Five companies have surpassed RMB 100 billion in valuation, and the average valuation of listed companies is RMB 54 billion. This concentration of value in leading enterprises not only reflects intensified competition in the AI field but also shows that capital is highly eager to invest in top AI companies.

Increasing Competition in Funding Landscape

Against this backdrop, The Dark Side of the Moon, as a key player in large model development, faces competitors also rapidly raising funds and increasing valuations. According to publicly available information, AI companies like iFlytek and Horizon Robotics have also achieved high valuations during this funding boom.

The ability of The Dark Side of the Moon to complete large-scale financings consecutively in a short period and steadily increase its valuation demonstrates investors’ strong confidence in its technological capabilities and commercialization potential. Behind this are its competitive products in large models, intelligent assistants, and related fields.

Strategic Intent Analysis

Why raise funds so quickly?

Looking at the frequency of financing, The Dark Side of the Moon has completed two rounds in a short period. This is not only to replenish cash flow but also to lock in better valuations during a hot funding market. It exemplifies a typical window-of-opportunity funding strategy.

Uses of Ample Cash Reserves

With over RMB 10 billion in cash reserves, potential uses for The Dark Side of the Moon include:

• Increasing R&D investment to upgrade large model capabilities
• Expanding marketing and market outreach to grow user base
• Reserving strategic flexible funds to respond to industry changes
• Setting aside capital for potential mergers, acquisitions, or collaborations

Summary

The new round of funding for The Dark Side of the Moon may seem like just a news report, but it reflects several important trends: the rapid growth of the overall value of the AI industry, the strong capital recognition of leading companies, and increasingly fierce funding competition. The fact that The Dark Side of the Moon can maintain its funding pace in such an environment indicates its solid position in the market. Its ample cash reserves provide the company with significant strategic flexibility, which is crucial for maintaining long-term competitiveness amid fierce competition. The current enthusiasm for AI funding continues, implying that the competitive landscape within the industry is still evolving.