Chinese startup Moonshot AI sparked another DeepSeek-like moment for US AI stocks and hyperscalers last week. David Sacks, the former White House AI and cryptocurrency czar, warned that this is "very concerning."Moonshot AI debuted Kimi K3, which ranks number three on the Artificial Analysis Intelligence Index, trailing only OpenAI's GPT-5.6 Sol and Anthropic's Fable 5. This only shows the continued trend of open-weight models toward the AI frontier.Kimi K3 has emerged as a top challenger across reasoning and coding workloads, highlighting the rapid pace of innovation and the increasing competitive pressure on models in terms of capabilities and downward trend in pricing. This only sparked weakness in sentiment toward AI US stocks and hyperscalers last week due to their massive capex binges to build out data centers.Related:Goldman Warns Massive Hyperscaler Bond Issuance Means "Risk Skewed To Downside"It serves as a reminder for companies amid the 'tokenmaxxing' woes that there are lower-cost alternatives for end users besides expensive frontier Anthropic and OpenAI.Now, Moonshot AI is leveraging last week's momentum and preparing for an initial public offering in Hong Kong within six months. Kimi K3 has strengthened investor confidence, positioning the startup to enter public markets.Bloomberg reports that Moonshot is in the process of concluding a funding round that values the three-year-old startup at $30 billion.Annual revenues topped $300 million in June, up from $200 million in April, supported by chatbot subscriptions and enterprise services.The startup has held talks with CICC and Goldman Sachs about the offering and is dismantling its red-chip structure to facilitate an overseas listing.Meanwhile... We’ve identified industrial-scale distillation attacks on our models by DeepSeek, Moonshot AI, and MiniMax.