Dark Side of the Moon (Kimi) Discusses Settlement Before IPO, Claims Could Exceed $700 Million

Beating AI Newsflash: According to an exclusive report by Reuters, executives of Dark Side of the Moon are negotiating a settlement regarding disputes with their former company, Recurrent.ai, and its investors, aiming to resolve a nearly two-year-long arbitration dispute before their Hong Kong IPO. It remains unclear whether the parties will reach an agreement. The dispute involves Dark Side of the Moon's founder Yang Zhilin and CTO Zhang Yutao, who co-founded Recurrent.ai in 2016. According to a legal letter seen by Reuters, Recurrent.ai and some of its investors accuse the two of establishing Dark Side of the Moon without board authorization and providing false information to the original company's investors. The letter also alleges that servers containing critical large model data were transferred without authorization, and some data was deleted. Additionally, the shareholding arrangement of Dark Side of the Moon's president, Zhang Yutong, has been questioned. Reuters has not independently verified these allegations. Yang Zhilin previously stated that the startup had obtained the necessary approvals, and his legal representatives argued that the case lacks factual and legal basis. When Dark Side of the Moon was founded, Recurrent.ai was allocated 9.5% of its initial equity. Now, Recurrent.ai and some of its investors are demanding compensation equivalent to 10.5% of Dark Side of the Moon's initial equity. Based on Dark Side of the Moon's $30 billion valuation during its June fundraising this year, insiders estimate the potential value could exceed $700 million. Dark Side of the Moon has confidentially submitted its Hong Kong IPO application. Insiders believe the dispute is unlikely to directly block the listing for now, but if unresolved, issues related to equity ownership and information disclosure could still pose obstacles. [Original Link]