Moonshot’s executives are in settlement talks with Recurrent.ai, according to people familiar with the matter.

Moonshot, a Beijing-based AI startup known for its Kimi models, has filed confidentially for a Hong Kong initial public offering.

A March 11 letter from Recurrent’s lawyers accused Moonshot CEO Yang Zhilin and CTO Zhang Yutao of misleading investors and transferring or deleting AI data.

The alleged transfer happened in 2023, and the alleged deletion happened in 2024. The claims could not be independently verified.

The dispute has been in Hong Kong arbitration since 2024. Recurrent.ai and some investors are seeking compensation equal to 10.5% of Moonshot’s original shares.

One person said that stake could be worth more than US$700 million, based on Moonshot’s June valuation of US$30 billion. Yang denied wrongdoing, while Moonshot declined to comment.

Moonshot’s valuation was reported to have reached about US$50 billion. One source said the dispute is not expected to derail the listing, but it could complicate the process.

Hong Kong-listed companies may need to disclose material arbitration even when proceedings are confidential.

🔗 Source: Reuters

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