US stocks fall after Chinese startup Moonshot unveils Kimi K3
Business
The US stock market dropped sharply on Friday after Chinese startup Moonshot announced its massive new AI model, Kimi K3.
Investors are worried it could challenge American tech hardware, and big names like NVIDIA and Micron saw their stocks tumble.
In fact, a key semiconductor index is down 10% this week.
Kimi K3 has 2.8 trillion parameters
Kimi K3 packs 2.8 trillion parameters, making it the largest open-source AI model ever, set to be fully available for anyone to use by late July.
Even though it ranks third globally in intelligence, its efficiency stands out, especially since China faces limits on advanced chips from the US.
This could give China an edge in the ongoing AI race, with companies like DoorDash already tapping into Moonshot's tech for affordable solutions.