China Has Caught Up in Frontier AI | American Enterprise Institute

China's Moonshot AI released Kimi K3, a 2.8 trillion-parameter model now competitive with US frontier models like Claude Opus, closing the capability gap from months to weeks. The article argues the real competition has shifted from model training to industrial-scale compute infrastructure—chips, memory, energy, and data centre capacity—where US export controls and manufacturing advantages remain decisive. If you sell compute infrastructure, memory, or data centre equipment to US-aligned markets, you now have explicit US strategy behind you—the administration is actively building friendly AI grids to lock out China. The open-source model commodifies capability; your competitive edge is owning the hardware that runs it at scale.