Tencent Joins $300 Million Financing for China’s AI Unicorn

Tencent Holdings Ltd. has contributed to a $300-plus million round Chinese generative AI startup Moonshot just closed, emulating its arch-rival Alibaba Group Holding Ltd. in fostering several hopefuls in the highly contested sector.

The fundraising propelled Moonshot’s valuation to $3.3 billion and attracted other investors including Gaorong Capital and existing backer Alibaba, people familiar with the matter said, asking to not be identified discussing private information. The Information earlier reported that Moonshot was seeking investments at a pre-money valuation of $3 billion and had held talks with Tencent.

Representatives from Moonshot and Gaorong declined to comment in separate messages. Tencent ...