Moonshot reveals new AI model, and it's a big surprise — here's why Kimi K3 is a threat to the likes of OpenAI

• Moonshot has launched a new AI model, Kimi K3
• It's surprisingly powerful, with the Chinese AI firm claiming it outguns most US rivals, save for a couple of exceptions
• Kimi K3 is open weight by nature, which poses a further threat to the likes of OpenAI and Anthropic

Moonshot, one of the emerging Chinese AI giants, has just revealed a new AI model which is seemingly up there with the likes of ChatGPT and Claude.

Bloomberg reports that Moonshot's new Kimi K3 model can equal the best that the US has to offer, at least based on the company's own benchmarking. Seemingly it outguns all rival AIs save for Claude Fable 5 (from Anthropic) and GPT-5.6 (from OpenAI).

Kimi K3 is a model with 2.8 trillion parameters, Bloomberg tells us, and Artificial Analysis ranked it ahead of Anthropic's Opus 4.8 on some benchmarks.

Moonshot also claims it beats Chinese rival Z.AI for coding tasks, and overall, the performance of the new model has caught the market by surprise.

Moonshot notes in a blog post that Kimi K3 is the "world's first open 3T-class model, designed for frontier intelligence across long-horizon coding, knowledge work, and reasoning."

Kimi K3 is available to use now. Bloomberg quotes Leonid Mironov, a portfolio manager at Gavekal Capital, as saying: "In my use, it's clearly the best Chinese model ever," noting that it's "brilliant" no less.

Analysis: a weighty threat

This is a threat to the big US players in the AI market for several reasons.

The key difference with Kimi K3 is that it's what's known as an "open weight" model, meaning anyone can grab the model to run it for themselves – from July 27, when the weights are released – without paying anything. It's not the same as open source, though, as while you can get the model, what you don't get to do is peek behind the scenes at how the model was trained (and on what data).

The other caveat is that running Kimi K3 takes some extremely powerful hardware; but nonetheless, for firms with the substantial wherewithal to do that, the pre-trained model is there for the taking at no cost. So, you can imagine how this open weight approach is threatening to the AI behemoths in the US (and this is presumably the point of going this way for the Chinese rival).

What will also be a concern to the likes of OpenAI and Anthropic is that Moonshot is attacking one of the most lucrative aspects of AI, with Kimi K3 being pushed for its coding skills. However, Moonshot is charging a lot more than Chinese rivals for those who want to use it, and in fact, it's priced around Claude Sonnet levels, so on a par with the current cutting-edge (frontier) AI models.

That in itself is a signal of the quality on offer here, and why Kimi K3 has raised quite a few eyebrows. As the competition around AI heats up, there are also concerns about whether that means safeguards will be increasingly overlooked in favor of faster development and progress (which has been a consistent source of worry for many as it is).

Adding to all the controversy are accusations of AI theft leveled by the US State Department at Chinese firms earlier this year, Moonshot included.