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AI Start-ups: MoonShot AI Model Kimi K3 to Compete with Anthropic and OpenAI

Australian Financial Review

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Date Published
20 July 2026
Priority Score
4
Australian
Yes
Created
20 July 2026, 08:00 pm

Authors (2)

Description

Fund managers warn that MoonShot’s new AI model could trigger an even bigger sharemarket collapse than the one caused by DeepSeek last year.

Summary

The release of MoonShot AI's Kimi K3 model represents a significant advancement in frontier AI capabilities, achieving parity with leading US models from OpenAI and Anthropic. This development highlights the accelerating global race in compute-efficient, high-capability AI, which complicates efforts to establish unified international safety guardrails. The rapid proliferation of these powerful models by Chinese firms suggests that barriers to entry for frontier-level AI are lowering, increasing the urgency for global governance frameworks to manage potential catastrophic risks associated with such powerful dual-use technologies. The resulting market volatility underscores the profound economic and systemic impacts of rapid shifts in the AI competitive landscape.

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MarketsEquity MarketsInvestingPrint articleAlex Gluyas and Paul SmithUpdated Jul 20, 2026 – 6.36pm, first published at 4.00pmIn January last year, Chinese start-up DeepSeek unleashed carnage in equity markets after releasing its R1 artificial intelligence model, which boasted similar capabilities to major US rivals but at a fraction of the cost.Just 18 months later, markets are facing an even bigger threat after another Chinese start-up called MoonShot on Friday unveiled its new Kimi K3 model that competes with the capabilities of the top-tier offerings from US AI giants Anthropic and OpenAI.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreInvestingOpenAIAnthropicWall StreetAISharemarketFetching latest articles