China's Moonshot unveils new AI model

Chinese AI startup Moonshot unveiled Kimi K3, a 2.8 trillion-parameter open-weight model matching Anthropic's frontier Fable model, as Chinese AI firms rapidly narrow the capability gap with US competitors through faster release cycles and lower costs. If you're building a product on top of Anthropic or OpenAI's latest models, cheaper Chinese equivalents just entered the market—your margin advantage has compressed and your customer acquisition cost just went up. Fable and Mythos are withdrawn; Kimi K3 is downloadable, customisable, and open-weight.