Moonshot AI’s founders Yang Zhilin and Zhang Yutao are in arbitration proceedings initiated by investors from their former company, Circulus Intelligence.

The filing occurred at the Hong Kong International Arbitration Centre.

Moonshot AI released a statement from David Morrison, a senior partner at Mingde Law Firm, claiming the arbitration lacks legal and factual basis. He stated plans to object.

The applicants include Recurrent AI and its investors: GSR Ventures, Eminence Ventures, Boyu Capital, WestSummit Capital, and Zoo Capital.

The reported conflict arises from allegations that Yang Zhilin and Zhang Yutao initiated Moonshot AI and obtained financing without consent from several of Recurrent AI’s investors.