Breaking

Peter Schiff Says AI Stock Bubble Is Deflating as China's Moonshot Unveils Low-Cost Kimi K3

July 20, 2026 at 16:40 EDT

Foundation Models
Open Source
Finance

Longtime market bear Peter Schiff argued that the AI equity boom has begun to unwind, pointing to intensifying low-cost competition from Chinese startup Moonshot AI's newly released Kimi K3 model and a broad slide in AI-linked shares.

July 16, 2026 · Moonshot AI

The Largest Open Model Yet Reignites the "AI Bubble" Debate

China's Moonshot AI unveils Kimi K3 — a 2.8-trillion-parameter open-weight system — as AI-linked equities slide and skeptics warn that "more air is coming out of the AI bubble."

2.8T

total parameters — first open model in the 3-trillion class

~1M

token context window, native multimodal input

16/896

experts activated per token (Stable LatentMoE)

Pricing: ~5× more expensive than earlier Kimi releases

The jump some read as the end of the ultra-cheap Chinese model narrative.

1×

earlier
Kimi

~5×

Kimi K3

$3 / M input (cache miss) $0.30 / M cached input $15 / M output

The bullish read

Strong on coding — frontend & long-horizon agentic work
Open weights let developers download and customize
Some testers say it can rival proprietary leaders

The skeptical read

Trails the strongest closed systems overall
Claims await independent verification once weights ship
User experience still lags the very top tier

Key dates

Jul 16, 2026

Kimi K3 launches — available via API immediately

→

Jul 27, 2026

Full open weights ship — independent benchmarking begins

Whether cheap open competition truly erodes U.S. labs' pricing power will become clearer only after developers can run the system for themselves.

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