Moonshot Unveils 'Kimi K3'… Global Markets Rocked as It Races Past OpenAI

The ultra-large AI 'Kimi K3', unveiled by Chinese startup Moonshot, has surpassed the flagship model of US-based OpenAI. Designed as an 'open' model that anyone can download and modify for free, it has rattled global financial markets. According to measurements by independent evaluator Lmsys, cited by The New York Times, the new model slightly fell short of Anthropic's latest model but succeeded in overtaking OpenAI's mainstay model.

Immediately following the announcement, the Nasdaq, S&P 500, and stock markets in Japan and Taiwan all fell. This sell-off was driven by fears that the US's 'high-cost closed AI' could be encroached upon by China's 'low-cost open AI.'

In terms of funding, Moonshot raised $2 billion last May compared to Anthropic's $6.5 billion, but the technical achievement of catching up to its rivals with roughly one-thirtieth of the capital is garnering significant attention.

The United States classifies 'distillation' technology as model theft and is urging allies through USTR Chief Jamieson Greer to implement US-level export controls and investment screenings. While Japan and South Korea hesitate citing sovereignty issues, the calculus for South Korea is becoming increasingly complex amidst China's technological leap and US control pressure.