Moonshot AI has stopped taking new subscriptions for its Kimi K3 service after a sixfold spike in demand overwhelmed the system. The Beijing-based startup, valued at $20 billion, is now preparing for a Hong Kong initial public offering that could push its valuation above $30 billion.
Why the pause
The company said the surge in orders for Kimi K3, its flagship AI product, made it impossible to maintain service quality for new users. Existing subscribers won't be affected, but anyone trying to sign up now will be put on a waitlist. Moonshot AI didn't say how long the pause will last or when it expects to reopen subscriptions.
What is Kimi K3
Kimi K3 is a large language model designed for long-context reasoning, capable of processing up to 10 million characters in a single session. That makes it popular among researchers, developers, and enterprises working with massive documents or codebases. The product is sold through a subscription model, with tiers ranging from individual plans to enterprise licenses.
IPO plans
Moonshot AI is reportedly working with banks to list in Hong Kong, aiming for a valuation north of $30 billion. That would be a 50% premium over its current $20 billion valuation, which was set in its last funding round. The company hasn't confirmed a timeline, but sources familiar with the matter say the IPO could come as early as the second half of 2025.
The demand surge for Kimi K3 appears to be a key driver of the higher valuation target. Investors see the product as a strong competitor to similar offerings from Baidu and Alibaba, especially in the enterprise segment. But the subscription pause raises questions about whether Moonshot AI can scale fast enough to meet that demand.
What happens next
For now, new customers are stuck on a waitlist with no clear reopening date. Moonshot AI has said it will prioritize infrastructure expansion before resuming sales. The company's IPO filing, expected later this year, will likely include details on how it plans to handle capacity constraints.
