China's Moonshot Releases 2.8-Trillion-Parameter Kimi K3, Rattling AI and Chip Stocks

Chinese startup Moonshot AI released Kimi K3, a 2.8-trillion-parameter open-weight model billed as the largest of its kind, triggering a sharp global sell-off in artificial intelligence and semiconductor stocks and reviving memories of last year's "DeepSeek moment." The launch, which landed around July 16, sent shares tumbling on concern that Chinese developers can now approach frontier-level capabilities at a fraction of Western costs.