DeepSeek · Claude · Cursor · GPT · Semiconductor · China · Decrypt
Kimi K3 Just Triggered DeepSeek Flashbacks for the Stock Market
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Moonshot AI launched Kimi K3 in the dead of night and markets woke up today doing what they always do when a Chinese lab closes the gap: They panicked.
Key facts
- Moonshot is backed by Alibaba, which put $1 billion into the company in 2024 at a $2.5 billion valuation
- As Decrypt covered in May, Moonshot already has deeper roots in U.S. developer circles than most realize—Cursor's Composer 2 was found to be running on Kimi K2.5 without disclosure before the Cursor
- The VanEck Semiconductor ETF (SMH) fell below its EMA support band—the moving average tracking the price trend over the prior months—for the first time since April, extending a rout that has put it
- The Nasdaq slid 1.5%, its worst session of the week
Summary
Moonshot AI launched Kimi K3 on Thursday—a 2.8-trillion-parameter open-weight model that ranked alongside Claude Fable 5 and GPT 5.6 Sol. Semiconductor stocks cratered Friday, with the VanEck Semiconductor ETF (SMH) falling below key support for the first time since April. Full model weights go public by July 27. Semiconductor and AI stocks dropped across the board Friday.