Analysts compare the breakthrough - a new AI model named Kimi K3 - to the Deepseek breakthrough in 2025, when the market suddenly saw that China's AI efforts were advancing rapidly despite technology restrictions from the US.
According to Moonshot, Kimi K3 is capable of delivering the same type of AI services that OpenAI and Anthropic can offer.
The entire sector is weighed down by Kimi K3, which was presented to Chinese leader Xi Jinping at a Chinese AI fair.
Both actual AI producers and their subcontractors are being hit by the development. On the Hong Kong stock exchange, Chinese ZAI plunged 28 percent, while OpenAI investor SoftBank Group plunged 9 percent on the Tokyo stock exchange.
