Moonshot AI is close to securing a new round of dollar-denominated financing that could value the company at approximately $4 billion, according to people familiar with the matter.

The AI startup is in discussions with multiple global investors, including IDG Capital, for this funding round, which may raise hundreds of millions of dollars. Some sources indicated that other potential investors include existing shareholder Tencent.

People familiar with the negotiations revealed that Moonshot AI aims to complete this funding round by year-end. The company has reportedly informed some prospective investors of its plans to pursue an initial public offering (IPO) in the second half of next year.

Neither Moonshot AI nor IDG Capital immediately responded to requests for comment. Tencent declined to comment.

Recognized for its long-text analysis capabilities, Moonshot AI has attracted prominent backers including Alibaba and Sequoia Capital China. In August last year, the company raised over $300 million in its Series B round from investors including Tencent and Gaorong Capital.