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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.”

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.

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.

The NatWest Growth Tracker Business Activity Index pegs the region as one of the best performers in the UK

A survey that tracks the health of the region’s private sector companies has remained in growth despite a fallback in activity in June.

The NatWest North East Growth Tracker Business Activity Index, which measures month-on-month changes in the region’s manufacturing and service sectors, declined to 50.8 in June, having stood at 53.8 in May. Scores above 50 denote a growing economy.

The North East outperformed the UK as a whole, however, where activity fell in June. Among the 12 monitored UK regions and nations, only London and the South East recorded better trends for activity.

Within the survey, business confidence strengthened in the North East in June, with optimism regarding output over the coming year rising to a three-month high. Cost pressures receded, according to businesses responding to the survey, while the rate of input price inflation eased to its lowest since February.

But there were concerns at job losses, which came at the steepest levels since November last year and were sharper than the UK average.

Malcolm Buchanan, chair of the NatWest North regional board, said: “The North East saw growth momentum falter as the first half of 2026 drew to a close, according to the latest NatWest Growth Tracker. New business placed with private sector firms increased for the seventh month running, but the rate of growth slowed to a fractional pace that was the weakest over this period and contributed to a much slower rise in overall business activity.

“Nonetheless, the region remained one of only three monitored UK areas to record growth in June, alongside London and the South East. This relative resilience helped support confidence among private sector firms, with optimism about the year ahead rising to a three-month high.

“Companies also reported a further easing in cost pressures at the end of the second quarter. The rate of input cost inflation fell to its lowest since February, though it remained high by historical standards. Firms continued to raise their own charges at a marked, albeit softer, pace as they sought to protect margins from elevated cost burdens.

“At the same time, businesses moved to protect cashflow by controlling expenditure elsewhere. Employment fell at the sharpest pace since November last year, underlining the pressure firms continue to face even as demand remains in positive territory.”

The release of the growth tracker has come ahead of some key economic data showing the state of the regional economy. Unemployment and labour market data will be published next Tuesday, including regional data, followed by national inflation data the next day.

Get ahead of the market by subscribing to Seeking Alpha’s Wall Street Week Ahead, a preview of key events scheduled for the coming week. The newsletter keeps you informed of the biggest stories set to make headlines, including upcoming IPOs, investor days, earnings reports, and conference presentations.

Wall Street opened in deep red on Friday as a global semiconductor selloff intensified on concerns over elevated AI spending and stretched valuations. Technology stocks remained under pressure as semiconductor shares across global markets traded lower. Meanwhile, tensions in the Middle East remained elevated as concerns over a fresh crude oil supply crunch persisted.

The economic calendar is relatively lighter next week with earnings in full swing. The only major data scheduled are initial jobless claims on Thursday and S&P Global PMI data for July on Friday.

Alphabet (GOOG) (GOOGL), Tesla (TSLA), and Intel (INTC) are among the major firms reporting their results next week. _______________________________________________________________

Earnings spotlight: Monday: Domino’s Pizza (DPZ), AMC Entertainment (AMC). See the full earnings calendar.

Earnings spotlight: Tuesday: Novartis (NVSEF), 3M (MMM), Halliburton (HAL). See the full earnings calendar.

Earnings spotlight: Wednesday: Alphabet, Tesla, Philip Morris (PM). See the full earnings calendar.

Earnings spotlight: Thursday: Intel. See the full earnings calendar.

Earnings spotlight: Friday: American Express (AXP). See the full earnings calendar.

Volatility watch: Sandisk (SNDK) and Western Digital (WDC) have seen options volatility increase over the last week. The most overbought stocks per their 14-day relative strength index include Crinetics Pharma (CRNX), AstroNova (ALOT), and CareDx (CDNA). The most oversold stocks per their 14-day Relative Strength Index include Standard Lithium (SLI) and Rithm Property Trust (RPT).

Dividend watch: Companies that have an ex-dividend date coming next week include Caterpillar (CAT), Colgate-Palmolive (CL), Dell Technologies (DELL), and Pfizer (PFE).

IPO watch: No IPOs are expected to price and

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Kevin Durant’s standing with the Houston Rockets continues to generate speculation across the NBA this offseason, with fresh reporting suggesting the two-time champion could once again find himself at the center of trade rumors just one year after Houston acquired him in a blockbuster deal with the Phoenix Suns.

Durant, who turns 38 in September, joined the Rockets last summer with expectations that he would help push Houston into championship contention. Instead, the team’s first season with Durant ended in disappointment, with the Rockets eliminated by the Los Angeles Lakers in six games during the first round of the 2026 playoffs. Durant appeared in just one game of that series, while Houston’s Luka Doncic missed the entire matchup and Austin Reaves was sidelined for most of it because of injury. Even shorthanded, LeBron James helped Los Angeles build a 3-0 series lead before Houston managed to extend the matchup to six games.

According to ClutchPoints NBA insider Brett Siegel, the Rockets never viewed the Durant acquisition as a guaranteed long-term commitment, despite the scale of the trade that brought him to Houston. Siegel reported that many around the league remain skeptical the Rockets will keep Durant through the remainder of his current contract, which runs through the 2027-28 season. Houston, according to Siegel’s reporting, viewed the move primarily as a way to upgrade from Jalen Green and bridge gaps in the roster as the team pushed to contend in a crowded Western Conference, rather than as a foundational piece for a multi-year rebuild.

Adding to the uncertainty surrounding Houston’s roster this offseason, veteran forward Josh Okogie is departing the Rockets in free agency to sign with the Utah Jazz, according to ESPN’s Shams Charania. While Okogie’s departure is unrelated directly to Durant’s situation, it adds to a broader sense of roster turnover surrounding the team as it enters the 2026-27 season.

Much of the speculation around Durant’s future has centered on the Detroit Pistons, driven in part by reporting that Durant has expressed a desire to play alongside Pistons guard Cade Cunningham. Siegel has reported that Durant has spoken highly of Cunningham dating back to the guard’s early years in the league, having publicly called him a “special talent” on multiple occasions. Separate reporting has indicated Durant may be willing to leave Houston specifically to team up with Cunningham, who recently signed a max rookie extension reportedly worth $269 million and has emerged as Detroit’s franchise cornerstone. A photo Durant posted on social media earlier this month showing himself wearing a Detroit-branded hat further fueled speculation about his interest in the Pistons, even as such gestures remain open to interpretation.

Beyond Detroit, several other franchises have been mentioned in connection with Durant’s name throughout the summer. The Minnesota Timberwolves have been consistently linked to Durant, with the team already having made one major offseason move by acquiring guard LaMelo Ball from the Charlotte Hornets. A hypothetical trio of Anthony Edwards, Ball and Durant has been floated by analysts as a potentially unguardable combination, though any deal sending Durant to Minnesota would likely need to include center Rudy Gobert, the four-time NBA Defensive Player of the Year, given the assets Houston would presumably seek in return.

The Boston Celtics have also emerged in trade speculation following the team’s own significant roster shakeup this offseason, which saw Boston trade Jaylen Brown to the Philadelphia 76ers in exchange for Paul George and multiple draft picks. Sports Illustrated’s Chris Mannix suggested Celtics president Brad Stevens could look to use those newly acquired picks as trade capital to pursue a star player such as Durant, writing that Boston’s picks carry real value even amid uncertainty about how they will ultimately be used. “The Celtics can spin that the pair of first rounders they picked up have value. And they do,” Mannix wrote. “The 2028 one will likely end up as the Clippers’, who are beginning a rebuild with an Aspiration-sized anvil over their head.”

The Washington Wizards have also been mentioned as a potential landing spot, with reporting indicating the franchise held interest in trading for Durant as far back as April, though no formal talks have been confirmed. Meanwhile, the Miami Heat’s chances of landing Durant have been characterized by some reporting as unlikely, with one recent Sporting News piece describing the Heat’s odds as “as bad as you’d imagine.”

Not everyone in league circles believes a trade is imminent. Some analysts have noted that Rockets general manager Rafael Stone has given no public indication the team is actively shopping Durant, and Durant himself has previously said he hoped to finish his career in Houston following last summer’s trade from Phoenix. That stated preference adds a layer of uncertainty to how seriously any of the reported interest from other teams might translate into an actual move before the start of the 2026-27 season.

Durant’s history with trade requests also looms over the current speculation. Over the course of his career, Durant has requested trades on multiple occasions, most notably during his final seasons with both the Brooklyn Nets and the Phoenix Suns, each of which ultimately resulted in him being moved to a new team. That pattern has left some around the league watching closely for any sign that his relationship with the Rockets could follow a similar trajectory, particularly given the disappointment of Houston’s first-round playoff exit and the reported skepticism among rival executives about whether the partnership will last through the length of his current contract.

For now, no formal trade request has been reported, and the Rockets have not confirmed any active effort to move Durant on the open market. But with reporting linking him to Detroit, Minnesota, Boston and Washington, and with questions persisting about how committed Houston is to building around him long-term, Durant’s situation appears likely to remain one of the NBA’s most closely watched storylines as training camps approach later this year.