Moonshot AI in Talks to Settle Recurrent Shareholder Dispute Before IPO

Moonshot AI executives are negotiating with shareholders to resolve a legal dispute before the company's planned IPO, according to a Reuters report cited by IT之家 on October 12, 2026. The dispute involves AI software developer Recurrent.ai and some of its investors, who allege misconduct by Moonshot AI's leadership and are seeking compensation.

A letter dated March 11 from a Recurrent.ai lawyer to Moonshot AI investors, which Reuters said it had seen, accuses Moonshot AI CEO Yang Zhilin and CTO Zhang Yutao of making false statements to Recurrent investors and of enriching themselves at Recurrent's expense. The letter also claims that servers containing key large language model data were transferred without authorization from Recurrent to a Moonshot AI subsidiary, though it does not provide evidence for that claim. In addition, the letter says that Zhang Yutong received a "substantial stake" in Moonshot AI after leaving the Recurrent board in 2022, and that this fact was deliberately concealed from Recurrent's shareholders.

Recurrent and its investors are seeking compensation equivalent to 10.5% of Moonshot AI's original shares. Reuters previously reported that Recurrent received 9.5% of Moonshot AI's original shares when the company was founded. It remains unclear what the 10.5% stake would be worth at the company's current valuation. As of the IT之家 report on October 12, 2026, the negotiations were still ongoing and the dispute had not been resolved.