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Chinese Startup Moonshot AI Releases Kimi K3, World’s Largest Open-Source Model, Rattling Global Markets

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Chinese Startup Moonshot AI Releases Kimi K3, World's Largest Open-Source

Beijing-based artificial intelligence startup Moonshot AI released Kimi K3 this week, unveiling what the company describes as the largest open-source AI model ever made publicly available, with benchmark performance the company says rivals some of the most advanced systems built by American labs including Anthropic and OpenAI.

The model, released Thursday, contains 2.8 trillion total parameters, making it roughly 75% larger than DeepSeek’s V4 Pro, previously one of the largest Chinese open-weight models at approximately 1.6 trillion parameters, and far outpacing Zhipu AI’s GLM 5 series at 744 billion parameters. Kimi K3 is also roughly 2.8 times the size of Moonshot’s previous flagship model, K2.6, released in April. Full model weights are scheduled to be released publicly on July 27, timed to coincide with the 2026 World Artificial Intelligence Conference currently underway in Shanghai.

According to Moonshot, K3 performed “competitively” against Anthropic’s Fable 5, currently among the most capable publicly available AI models, and “substantially outperformed” Anthropic’s Opus 4.8 as well as OpenAI’s GPT 5.6 Sol and GPT 5.5 on the company’s officially released benchmarks, where K3 consistently ranked among the top three models tested. One independent benchmark from Arena.AI reportedly ranked K3 as the best-performing model currently available, ahead of offerings from both Anthropic and OpenAI, though Moonshot’s own reporting placed K3 slightly behind Fable 5 on overall performance.

In a press release announcing the model, Moonshot described K3 as its most powerful open-source coding model to date. “K3 stands as Moonshot AI’s most powerful open-source coding model to date,” the company wrote, adding that the model can “sustain long engineering sessions, navigate massive repositories, and orchestrate terminal tools” while “operating with minimal human oversight.”

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The model introduces two architectural innovations developed internally at Moonshot: Kimi Delta Attention, a hybrid linear attention mechanism designed to reduce memory usage and improve processing speed, and Attention Residuals, which the company describes as a drop-in replacement for traditional residual connections that delivers more consistent performance gains as models scale in size. Both techniques had previously been published as open research by Moonshot’s team on GitHub. K3 also supports a 1-million-token context window, positioning it for long-horizon coding tasks and autonomous agent workloads, along with native visual understanding capabilities and an always-on reasoning mode the company calls “thinking mode.” Moonshot said the model uses 21% fewer output tokens than its predecessor on equivalent tasks, and the model’s API is compatible with the OpenAI SDK, lowering the technical barrier for developers already building on OpenAI or Anthropic’s existing toolchains.

Pricing for K3’s API access is set at $3 per million input tokens and $15 per million output tokens, the highest pricing structure of any major Chinese AI lab, though still roughly half the per-task cost of Anthropic’s Opus 4.8 and dramatically cheaper than Fable 5, which reportedly costs $50 for an equivalent volume of output tokens. Independent testers have noted that K3’s reasoning mode consumes a substantial number of tokens even on relatively simple tasks, with one test generating 13,241 reasoning tokens for a basic SVG image-generation request, costing roughly 25 cents per query.

Moonshot’s Kimi chatbot has become one of the most widely used consumer AI products in China, and the company’s annualized recurring revenue exceeded $200 million as of April, driven by a combination of paid subscriptions and API usage. The company’s investor base includes several major names in Chinese technology, including Alibaba, Tencent, Meituan, HongShan (formerly known as Sequoia China), ZhenFund and 5Y Capital, with total funding raised across four rounds standing at approximately $3.77 billion. Bloomberg reported in June that Moonshot was seeking a new funding round valuing the company at roughly $30 billion, an almost eightfold increase from its $4 billion valuation in late 2024.

Beyond its use inside China, Moonshot’s models have already gained traction among Silicon Valley developers. Cursor, the AI-assisted coding startup, has used earlier versions of Kimi to help power its Composer 2 coding agent. DoorDash chief technology officer Andy Fang said in an early July social media post that the company delegates “lower-level work to Kimi K2.6.” Thinking Machines also used Kimi K2.5 to help generate early post-training data for its Inkling model, released July 15.

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The release of K3 coincided with, and appeared to intensify, a broader selloff already underway in global chip and technology stocks. Taiwan Semiconductor Manufacturing Company shares fell 7% Friday despite the company reporting a 77% jump in quarterly operating profit, while SoftBank, often viewed by investors as a proxy for OpenAI given its investment stake, fell 9%. Z.ai, a Chinese AI startup that has released a competing model to Kimi, plunged nearly 30% in Hong Kong trading. In the U.S., the Nasdaq 100 fell roughly 1% as of 2 p.m. Eastern time Friday, Nvidia shares dropped 1.2%, briefly ceding its position as the world’s most valuable company to Apple, and Meta shares fell more than 2.4%.

Technology analyst Patrick Moorhead pushed back on characterizing the market reaction as strictly performance-driven, attributing much of the response instead to broader political tensions surrounding Chinese AI development. In an email to CNBC, Moorhead said, “There’s a big debate in Washington DC about whether the U.S. should use Chinese open source models and if U.S. companies should enable the Chinese to use their models,” adding, “The latter is ironic as the Chinese seem to be doing fine with their models.”

K3’s release marks a notable comeback for Moonshot, whose market position had eroded significantly over the prior 18 months following the meteoric rise of rival Chinese lab DeepSeek, whose earlier open-source model releases similarly rattled global markets and intensified competitive pressure across the AI industry. With full model weights set to be published July 27 and Moonshot pursuing a substantially higher valuation in ongoing funding talks, the release is expected to keep pressure on both Chinese and American AI labs as the global race to develop increasingly capable, cost-efficient open-weight models continues to accelerate.

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(VIDEO) How to Watch Sunday’s 2026 Argentina vs Spain World Cup Final for Free: Livestream Options by Country

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Argentina's Lionel Messi celebrates after scoring against Bolivia in a World Cup qualifier on Thursday

Soccer fans around the world will have multiple free options to watch Sunday’s 2026 World Cup final between Argentina and Spain, with broadcasters across dozens of countries offering the match on free-to-air television or through free streaming platforms.

The final kicks off at 3 p.m. Eastern time, 8 p.m. British time, on Sunday, July 19, at MetLife Stadium in East Rutherford, New Jersey. The match marks Argentina’s bid to become the first nation in more than six decades to win consecutive World Cup titles, while Spain seeks its second championship following its lone previous title in 2010.

In the United States, the match will air in English on Fox, with a Spanish-language broadcast available on Telemundo. Viewers with a basic TV antenna, typically costing between $20 and $30, can pick up both channels for free in most metro areas, allowing access to the final, halftime show and trophy ceremony without any monthly subscription cost. For those who have cut the cord entirely, Fox is also available through live TV streaming services including YouTube TV, Fubo, Hulu + Live TV, DirecTV and Sling, most of which offer free trial periods for new subscribers. Fox’s own streaming platform, Fox One, is priced at $19.99 a month but offers a three-day free trial, enough to catch at least part of the tournament’s coverage. Telemundo’s Spanish-language broadcast can also be streamed through Peacock, which offers an ad-supported subscription for $11 a month.

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In the United Kingdom, the final will be available completely free through both the BBC and ITV. Cord-cutters can stream the match on BBC iPlayer or ITVX, with STV Player carrying the ITV feed specifically for viewers in Scotland. The BBC is additionally offering an ultra-high-definition stream through iPlayer, along with full radio commentary on BBC Radio 5 Live. Access requires only a valid UK television license and a UK-registered account.

Ireland will also carry the match free of charge, with RTE broadcasting the final with English-language commentary. Kickoff in Ireland falls at 8 p.m. local time, matching the UK broadcast window, and viewers can stream the match through the RTE Player app or website at no additional cost beyond a standard internet connection.

Australia will offer free coverage of the final through SBS On Demand, giving fans in the country access to the match without a cable or satellite subscription. In Canada, the World Cup final will be broadcast on CTV and streamed through Crave at no cost to viewers, with kickoff falling at 3 p.m. Eastern time, or 2 p.m. Central time, matching the U.S. broadcast window.

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A number of other countries have also secured free-to-air rights for the final. Brazilian fans can watch the match for free through CazéTV’s YouTube channel. In Belgium, the game will be shown on RTBF and VRT. The Netherlands will carry the match on NOS, while Switzerland has multiple free options available through SRF Play, RTS Play and RSI Play, reflecting the country’s multiple language regions. Turkish viewers can access the final through TRT’s free coverage.

For fans traveling outside their home country during the final, or those hoping to access a specific national broadcast unavailable in their current location, a virtual private network, or VPN, offers one potential workaround. VPN services allow users to route their internet connection through servers located in a different country, which can make it appear as though a device is browsing from that location, potentially unlocking access to a broadcaster’s streaming platform available only within that country’s borders. Providers such as NordVPN and ExpressVPN have marketed World Cup-specific promotions around the final, often including 30-day money-back guarantees. Using a VPN is legal in most countries, though accessing a streaming service from outside its intended broadcast region may violate that platform’s terms of service, and users should be aware of the specific policies of whichever streaming service they intend to access.

One option that will not provide a live stream of the final is FIFA’s own streaming platform, FIFA+, which offers highlights and archival content but does not carry live match coverage. Live broadcasts of the final are instead handled exclusively through each country’s officially licensed broadcaster, such as Fox and Telemundo in the United States or the BBC and ITV in the United Kingdom.

Beyond the match broadcast itself, Sunday’s final will feature an extensive pregame and halftime entertainment lineup. According to reporting from Billboard, singer Jennifer Hudson is scheduled to perform the U.S. national anthem ahead of kickoff, while Nicole Scherzinger, Laura Pausini and Robbie Williams are set to perform during the pre-match ceremony, with additional appearances expected from internet personality IShowSpeed and actor Tom Cruise. The tournament’s halftime show is expected to feature performances from Madonna, Shakira, Justin Bieber and BTS, marking one of the most star-studded entertainment lineups in World Cup history.

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Sunday’s championship match will be preceded by the tournament’s third-place playoff between France and England, scheduled to kick off at 5 p.m. Eastern time at Hard Rock Stadium in Miami, also airing on Fox and Telemundo in the United States.

For fans without access to any of the free broadcast options listed above, most major cable and satellite providers will carry Fox and Telemundo as part of standard programming packages in the United States, while international viewers are encouraged to check their own country’s officially licensed broadcaster for local availability, since rights holders and free-to-air arrangements vary significantly from country to country. With kickoff approaching Sunday afternoon, soccer fans across dozens of countries are expected to have some form of free or low-cost access to what promises to be one of the most closely watched World Cup finals in recent memory, pitting Lionel Messi’s push for a second consecutive title against Spain’s bid to add a second star above its crest.

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NYC Mayor Mamdani Says He May Still Order Netanyahu’s Arrest If He Visits New York Later This September

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New York City mayoral candidate Zohran Mamdani, seen here on the day of the Democratic primary June 24, 2025, has little experience but has energized followers with a leftist campaign

New York City Mayor Zohran Mamdani said this week that his administration is still weighing whether to order the arrest of Israeli Prime Minister Benjamin Netanyahu should he travel to the city for the United Nations General Assembly in September, reviving a controversial pledge Mamdani made during his mayoral campaign.

Speaking with Lulu Garcia-Navarro on The New York Times show “The Interview,” Mamdani said he continues to believe Netanyahu should face prosecution over Israel’s conduct in Gaza. “I believe that Prime Minister Netanyahu belongs in the Hague,” Mamdani said, referring to the seat of the International Criminal Court. “He’s a war criminal who has been charged by the International Criminal Court,” Mamdani added. “And what you will find is that is an opinion that is held by many, purely because of what his actions have wrought over these last many years.”

Mamdani acknowledged uncertainty over whether he possesses the legal authority to direct the New York Police Department, which falls under his oversight as mayor, to detain a sitting foreign head of state. He said his administration remains in “an active conversation” with the city’s Law Department to determine the scope of his authority on the matter. “Whatever the law allows me to do in New York City, that’s what we will do, but we won’t be writing our own laws to that end,” Mamdani said.

The comments echo a pledge Mamdani made during his mayoral campaign last year, when he told The Times he would direct the police department to arrest Netanyahu if given the opportunity, framing the move as an effort to honor an arrest warrant issued by the International Criminal Court over Netanyahu’s role in the war in Gaza. Mamdani and a United Nations commission have both characterized the conflict as a genocide, a designation Israel has strongly disputed.

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Netanyahu responded to Mamdani’s renewed comments during a recent appearance on a radio program hosted by Sid Rosenberg, a frequent critic of the mayor. Netanyahu said he was not concerned about the prospect of arrest and accused Mamdani of aligning himself with Hamas, the Palestinian militant group that controls significant portions of Gaza and carried out the October 7, 2023, attack in Israel that preceded the current war. “I think he should look at who he’s condemning, who he’s praising,” Netanyahu said. “He’s condemning Israel, the one democracy that stands shoulder to shoulder with American values.” Netanyahu went on to say, “Who does he champion? Hamas, that calls openly to massacre every Jew on earth, that conducted that horrible massacre, the worst massacre on Jews since the Holocaust.” He further claimed that Mamdani “doesn’t care” that “those who hate the Jews and Israel ultimately hate America,” adding, “And in fact I think secretly, he hates America.”

Mamdani has consistently condemned the October 7 attacks and does not speak favorably of Hamas when discussing his criticisms of Netanyahu, though he has made his concerns about Israel’s conduct in Gaza a central and recurring theme of his political identity. Associates who know him well have said he views Palestinian liberation as one of the defining moral issues of his generation.

Mamdani’s positions on Israel, once considered outside the Democratic Party’s mainstream, have gained broader traction within the party in recent months. Nearly half of House Democrats voted this week in favor of ending U.S. aid to Israel, a measure that ultimately failed to pass but signaled a notable shift in the party’s posture toward one of its longstanding allies in the Middle East. Asked about the political significance of the Gaza war, Mamdani said the issue has motivated voters nationally, including in recent House races in New York where candidates he endorsed won their elections. “It is hard to find a more bankrupt policy approach than what our country has done to Gaza and to Palestine,” he said.

The wide-ranging interview also touched on national politics, with Mamdani speaking positively about the possibility that Representative Alexandria Ocasio-Cortez of New York, a fellow member of the Democratic Socialists of America, could run for president in 2028. “I think she’d make a good anything,” Mamdani said.

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On immigration, Mamdani criticized the Trump administration’s enforcement approach while stressing that border security remains important to him. He said his administration is “willing to work with the federal government” in cases involving immigrants convicted of serious crimes, but drew a firm line against broader cooperation. “What we are unwilling to do is to participate in civil immigration enforcement with a federal government that has said openly it wants to deport a vast majority of people for crimes that we will never even know,” he said.

Mamdani also defended his police commissioner, Jessica Tisch, against criticism from some fellow democratic socialists, crediting her with helping to reduce crime in the city, even as some of his own supporters have raised concerns about the frequency of low-level arrests conducted under her leadership.

The mayor addressed the media attention surrounding his wife, artist Rama Duwaji, who has largely stayed out of the public eye during his time in office but has faced criticism over past social media activity, including liking a post that celebrated Hamas’s October 7 attack. “She is her own person,” Mamdani said. “She’s an incredible artist, and yet so much of how she engages with the world today is framed through her being my wife.”

Mamdani also reflected on how he defines economic struggle in a city with a high cost of living, an issue central to his political rise. Asked whether someone earning $250,000 annually could be considered working class, he said he had not set a specific income threshold, instead focusing on people’s ability to afford basic necessities. “What I would say is those who are working to try and afford the basic dignities of life and aren’t able to do so, I think that that is also working class,” he said. When pressed on whether that framing could group a janitor with a lawyer, Mamdani said he was less concerned with rigid definitions than with a broader question facing residents: “Is there any way for them to actually be able to work this hard and afford a good life in the city?”

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Reflecting on his rapid rise to national political prominence, Mamdani offered a candid assessment of the mindset required for the role. “I think there is some level of absurdity that you have to have as a part of yourself to believe that it should be you,” he said.

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HDFC Bank Limited (HDB) Q1 2027 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript