Moonshot AI Targets $2 Billion Annualized Revenue by End of 2026

Moonshot AI, the Chinese AI startup behind the Kimi K3 model, plans to increase its annualized revenue several-fold to $2 billion by the end of 2026, according to Bloomberg.

The company told investors that its annual recurring revenue surpassed $1 billion in August 2026, up from $300 million in June, driven by the launch of Kimi K3 in July. The model has ranked top on several performance benchmarks while costing significantly less than leading U.S. rivals. Moonshot expects sales to double again as demand for its Kimi subscription and hosted models grows. The company is raising funds at a $50 billion valuation and could list in Hong Kong as early as 2026. Cloud service providers may add a new revenue stream: under the Kimi K3 licensing terms, businesses hosting the model that earn over $20 million in 12 months must sign a separate agreement with Moonshot. Meanwhile, Reuters reported in August that Moonshot is in talks with Microsoft, Amazon and Google over a 30% revenue share.