Money Burned, Users Gone: Kimi Falls to Second-Tier After a Year

The AI sector in 2025 shows a stark divide: on one side, startups like Zhipu and MiniMax race to become the “first AI large model IPO”; on the other, Kimi of Moonshadow, once a rising AI star, faces declining users and ranking drops.

According to Quest Mobile, Kimi’s weekly active users have dropped to 4.5 million, falling from second to seventh place, surpassed by Doubao, DeepSeek, Yuanbao, Antafu, and Alibaba Qianwen. Data from Qimai shows downloads have also declined significantly since April 2025. Investors point out: “What Kimi has, others also have—and it’s not the best.”

Declining Downloads and Active Users
In early 2024, Kimi gained fame with its long-text processing capabilities and secured over $1 billion in investment from Alibaba. However, excessive marketing and internal conflicts eroded its tech halo, causing massive user churn. Quest Mobile reports its weekly active users now only number 4.5 million, relegating it to a second-tier AI model.

“Burn Money for Growth” Fails
Kimi’s early growth relied on heavy spending, with a per-user acquisition cost of 12–13 RMB. With fierce competition, this model proved unsustainable. As one investor said: “The most awkward thing about Moonshadow is that what it has, others also have—but it’s not the best.”

Caught Between a Rock and a Hard Place
In both consumer and enterprise markets, Kimi overlaps heavily with major competitors and lacks differentiation. Scaling the model is hard; focusing on applications risks valuation. Experts suggest Moonshadow should avoid the main channels dominated by giants, target vertical scenarios, or go global to build distinctive features and regain traction.