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
