Global Markets Tumble as Chinese AI Innovation Sparks Concerns Over Tech Sector Volatility Stocks in Asia and the United States fell on Friday after technological advances announced by a Chinese artificial intelligence company intensified concerns that the AI spending spree driving this year’s market rally could be at risk. Chinese startup Moonshot AI unveiled Kimi K3, a new open-source model that the company said closes much of the gap with models such as OpenAI’s ChatGPT and Anthropic’s Claude. The Nasdaq dropped 1.4% Friday, while the S&P 500 fell 1%. The Dow closed lower by 407 points, or 0.77%. Taiwan’s benchmark stock index closed down more than 6%, while markets in Japan closed down 4% on the news. South Korean markets were closed Friday for a national holiday. Moonshot said Kimi K3 is nearing the performance of cutting-edge models like Anthropic’s Claude Fable 5, resurfacing concerns about competition from companies in China. Kimi K3 is the world’s largest open-source model, according to Moonshot. Open-source models can pose problems for US AI companies that are trying to charge subscriptions to access their closed-source models. That can also hurt the chipmakers that are betting on a continued AI spending spree. After soaring in recent months on AI enthusiasm, chipmakers are dropping sharply. Chipmaker Micron (MU) is down about 30% since hitting a record high in late June but is still up almost 200% this year. Competition from alternative, open-source models could hurt forecasts for AI companies’ growth and complicate plans for massive infrastructure spending, which could hurt revenue projections for chipmakers and companies betting on the AI boom.#anthropic_claude #moonshot_ai #kimi_k3 #open_source_model #us_ai_companies
Kimi K3 Launches with 1 Million Context Tokens, Escalating the AI Arms Race That Moves Crypto Markets Moonshot AI has unveiled its latest AI model, Kimi K3, which boasts a context window of up to 1 million tokens. This represents a fourfold increase compared to its predecessor, the K2 series, which supported context windows of approximately 256,000 to 262,000 tokens. The new model is now available across web platforms, apps, and APIs, marking a significant step in the company’s rapid development. The core innovation of Kimi K3 lies in its expanded context window, which allows the model to process vast amounts of information simultaneously. This capability is particularly useful for tasks requiring the analysis of large codebases or entire books. The model is expected to operate on a Mixture-of-Experts (MoE) architecture, utilizing approximately 2 to 3 trillion parameters. This is a substantial jump from the K2 series, which ran on about 1 trillion parameters. The MoE approach routes queries to specialized sub-networks, enhancing efficiency by not activating all parameters for every task. Another standout feature of Kimi K3 is its Agent Swarm technology, which enables the model to coordinate up to 300 sub-agents working in parallel. This allows for complex multi-step planning and execution, positioning the model as a powerful tool for advanced applications. Early access to the model reportedly began rolling out around July 14 to 15, with Moonshot AI making it available through its web platform, desktop CLI, and API endpoints. Moonshot AI, founded in March 2023 in China, has demonstrated rapid growth. By October 2023, the company had launched its Kimi chatbot, initially supporting 128,000 tokens. The K2 series was introduced in July 2025, followed by iterative improvements. K2.#hugging_face #moonshot_ai #kimi_k3 #anthropic_claude_opus #moonshot_ai_china
