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News of the day
1. Moonshot AI launches Kimi K3, a 2.8T parameter model, with impressive benchmarks and a high price point, but the pelican test reveals its limitations. → Read more
2. Google Cloud's Axion processors and GKE Agent Sandbox offer a cost-effective, secure solution for agentic AI workloads, optimizing performance and efficiency. → Read more
3. Google Vids introduces personalized AI avatars and Gemini Omni for enhanced video creation, transforming it into an all-in-one platform. → Read more
4. AI inference startup General Compute secures $400M loan from Upper90, using inference chips as collateral, signaling a shift towards cost-effective AI infrastructure. → Read more
Our take
Hi Dotikers!
A few days ago, we were watching OpenAI try to talk its way into our living rooms with a Jony Ive-designed device, locking down the territory from above. This week, the real tremor comes from the East. Moonshot AI, the Beijing lab backed by Alibaba, has released Kimi K3, an open model with 2.8 trillion parameters that it presents, without blushing, as the top of the 3-trillion class. One has to appreciate the commercial rounding.
The numbers themselves are serious: a one-million-token context window, native vision, and in-house benchmarks that put it ahead of Claude Opus 4.8 and GPT-5.5, just behind Fable 5 and GPT-5.6 Sol. On the front-end coding arena, it even edges past everyone, Fable 5 included. Full weights land on July 27.
But the information that matters is not the size, it's the price. Kimi K3 bills at 3 dollars per million input tokens and 15 per million output. In other words, Sonnet pricing. Chinese labs, long synonymous with power at a discount, have just aligned their prices with the Americans'. So much for the friendly neighbourhood discounter: Moonshot no longer wants to be the cheapest, it wants to be paid like the big players.
This shift deserves a pause. In a few months, Chinese labs have single-handedly pushed back the size ceiling of open source, and the open frontier is now being contested between Moonshot, DeepSeek and soon MiniMax. Europe, which dreamed of carrying the open-weight banner with a certain French champion we're all very fond of, is simply not in the 3-trillion conversation. Sovereignty is not just about regulation. It's also about knowing who builds the models the rest of the world will download on July 27.
Alex.
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