Alibaba-backed Moonshot unveiled Kimi K3, the world’s largest open-weight AI model. The new system features 2.8 trillion parameters. Its performance reportedly rivals top-tier models from U.S. developers OpenAI and Anthropic.
The announcement triggered an intensified global selloff in semiconductor stocks. The Philadelphia Semiconductor Index entered bear market territory following the news. Major industry players including Nvidia, AMD, and Taiwan Semiconductor recorded significant declines.
Investors fear the availability of powerful, lower-cost Chinese AI could curb global infrastructure spending. Analysts compared the market reaction to the 2025 DeepSeek moment. The release fueled concerns that the massive spending driving chip valuations may decrease.