China’s Kimi K3 AI Matches Top US Models — and Washington Is Demanding Answers

NewsFri, 24 Jul 2026 08:05:15 UTC1 hour ago

TLDR

  • Chinese startup Moonshot AI launched Kimi K3, a free open-weight AI model matching top US systems like OpenAI’s GPT and Anthropic’s Claude
  • Demand was so high Moonshot suspended new subscriptions within two days of launch
  • White House official Michael Kratsios accused Moonshot of stealing Anthropic’s Fable model through distillation
  • Moonshot and China’s embassy denied the allegations, calling them “entirely unfounded”
  • US Treasury Secretary Scott Bessent warned sanctions and trade blacklisting are on the table

Chinese AI startup Moonshot AI launched Kimi K3 on Friday, describing it as a 2.8 trillion-parameter open-weight model. The company says it delivers performance close to Anthropic’s Fable, one of the most advanced US AI systems available.

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