Kimi K3 beats most AI models, except OpenAI's GPT-5.6 and Anthropic's Claude Fable 5. Moonshot is now seeking a valuation of over $30 billion ahead of an IPO.

Chinese startup Moonshot AI has unveiled Kimi K3, a 2.8-trillion parameter open-source model designed to challenge US rivals in complex reasoning and coding.

Moonshot AI's Kimi K3 launches with 2.8 trillion parameters, beating GPT-5.6 on key tasks and triggering semiconductor stock sell-offs amid US AI spending

People walk past the Moonshot booth promoting its Kimi K3 AI model, during the World Artificial Intelligence Conference (WAIC) in Shanghai, China, July 17, 2026. [Photo/Agencies]

The Chinese startup unveiled Kimi K3 on Friday, a model that it says delivers performance that rivals top-tier offerings from OpenAI and Anthropic PBC at a fraction of the cost.…