Markets may have just experienced their second DeepSeek shock, this time thanks to a Chinese AI lab named after a Pink Floyd album

On Thursday, Moonshot AI, a Beijing-based AI startup, unveiled the latest version of its Kimi large language model, which promises performance close to Anthropic’s Fable 5—perhaps the most powerful publicly available model today—at a fraction of the cost.

Kimi K3, the largest open-weight model ever released, performed “competitively” with Fable 5, and “substantially outperformed” Anthropic’s Opus 4.8, and OpenAI’s GPT 5.6 Sol, according to Moonshot. The company’s officially-released benchmarks consistently rank K3 among the top three AI models; one independent benchmark from Arena.AI even put K3 as the best model currently available, ahead of Anthropic.

Many observers, including Anthropic CEO Dario Amodei, didn’t expect a Chinese AI lab to release a model that could approach the U.S.’s best offerings for another six months. Tesla CEO Elon Musk, for example, suggested it might happen by the first quarter of next year. K3’s launch rapidly shrank that timeline and underscores just how quickly Chinese AI developers are closing the perform...