Chinese AI startup Moonshot AI launched its Kimi K3 model recently, causing AI and semiconductor stocks to decline in the U.S. on Friday, Bloomberg reported the same day.

Moonshot reportedly claims the model is at par with OpenAI and Anthropic PBC's most powerful offerings.

The announcement of the launch coincided with President Xi Jinping's attendance of China's top AI summit, underscoring the country's focus on leading the AI sector, Bloomberg said.

Kimi K3, a 2.8T-parameter model with a 1-million-token context window, is the world's first open 3T-class model designed for frontier intelligence across long-horizon coding, knowledge work, and reasoning, according to the company.

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