Moonshot announced a $2bn raise at $12bn valuation in May.
China is showcasing its AI prowess despite efforts by Washington, as Moonshot AI’s new Kimi K3 boasts a performance close to OpenAI and Anthropic’s latest models.
At 2.8trn parametres, Kimi K3 is the largest open-weight AI model available in the market today. The multimodal model is designed for frontier intelligence across long-horizon coding, knowledge work and reasoning.
Across benchmarks, K3 only trails behind OpenAI’s newest GPT-5.6 Sol and Anthropic’s Fable 5, while outperforming them in some coding and general agent tasks. The company said that K3 performed “competitively” with Fable 5 and “substantially outperformed” Opus-4.8, GPT-5.6 Sol and GPT-5.5.
K3 is also the cheapest of the three, at around $0.94 per Artificial Analysis intelligence index task and $15 per million output tokens, while GPT-5.6 Sol max costs around $1.04 and Claude Fable 5 makes a significant leap to around $2.75 per task.
Although cheaper than the American juggernauts, Moonshot’s new model marks a major leap in price compared to its Chinese contemporaries. DeepSeek’s V4 Pro costs around $0.04 per index task according to Artificial Analysis rankings, while MiniMax’s M3 costs around $0.12 for the same.
Moonshot unveiled its new model just months after announcing a $2bn raise from Chinese food delivery company Meituan’s VC arm Long-Z Investments, alongside Shuimu Capital, China Mobile and CPE Yuanfeng. The May round valued the start-up at around $20bn.
The launch marks the latest in escalating tensions between US and China over AI leadership. US curbs on semiconductor exports to China over recent years has pushed China to focus on its own chip capabilities, with Moonshot AI president Yutong Zhang telling the audience at the World Economic Forum earlier this year: “We knew we didn’t have the luxury to simply scale up compute…That forced us to focus on fundamental research and efficiency.”
The US is taking a more restrictive approach to sharing advanced home-grown AI models by only allowing approved bodies to access GPT-5.6, Fable and Mythos – much to OpenAI’s disappointment.
Lawmakers from the country, meanwhile, are also urging the Trump administration to ban US companies from buying memory chips from Chinese semiconductor developers.
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