A Chinese AI startup triggered a broad market selloff after releasing a new model that raised fresh concerns about US semiconductor valuations.
Moonshot AI unveiled Kimi K3, sending chip stocks lower and weighing on risk assets. Bitcoin fell below $64,000, while Ethereum traded near $1,800, Solana hovered around $75 and XRP slipped toward $1.07.
Moonshot AI pressures tech and crypto markets
The market reaction followed a familiar pattern. The emergence of another competitive Chinese AI model prompted investors to reassess the valuations of US chipmakers, pulling semiconductor stocks and the broader Nasdaq lower.
DeepSeek caused a similar reaction last year. Weakness in technology stocks quickly spread across risk assets, including crypto.
