China’s Open AI Models Are Challenging Silicon Valley’s Playbook
The AI industry is not quite experiencing a DeepSeek 2.0 moment, but it feels very close. The leading Chinese AI labs have been on a roll lately, releasing a series of almost cutting-edge open-source models. Z.ai released GLM 5.2 in June, Moonshot AI released Kimi K3 last week, and Alibaba released Qwen 3.8 this Monday.
Silicon Valley and Washington started talking about the models immediately, especially K3, which is widely seen as the best of the bunch. David Sacks, a venture capitalist and AI adviser to President Donald Trump, called the performance of Moonshot’s model “concerning.” Earlier this week, Commerce Secretary Scott Bessent suggested the US might impose sanctions on Chinese AI companies.
On Wednesday, Michael Kratsios, director of the White House Office of Science and Technology Policy, allegedthat the Trump administration has “information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model,”...
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