China’s new AI just blew up Silicon Valley’s $1 trillion delusion

The second Chinese AI shock rattles US as China narrows the race

Kimi K3 from Moonshot AI reached frontier-level AI performance at lower cost with open-weight release, signaling China's accelerating capability catch-up. The model directly threatens American firms' pricing power and premium positioning, forcing competition on technical merit rather than scarcity—reshaping enterprise procurement.