Stocks in Asia and the United States fell Friday after technological advances announced by a Chinese artificial intelligence company intensified concerns that the AI spending spree driving this year’s market rally could be at risk.
Chinese startup Moonshot AI unveiled Kimi K3, a new open-source model that the company said closes much of the gap with models such as OpenAI’s ChatGPT and Anthropic’s Claude.
The Nasdaq dropped 1.4% Friday, while the S&P 500 fell 1%. The Dow closed lower by 407 points, or 0.77%.
Taiwan’s benchmark stock index closed down more than 6%, while markets in Japan closed down 4% on the news. South Korean markets were closed Friday for a national holiday.
Moonshot said Kimi K3 is nearing the performance of cutting-edge models like Anthropic’s Claude Fable 5, resurfacing concerns about competition from companies in China.
