Within the space of two weeks, America's AI factions have been forced into an unusual show of unity — and Kimi K3 is the reason.
On July 16, Moonshot AI's Kimi K3 went live, with the company promising to release the model's complete weights 11 days later. The very next day, the tremors hit US chip stocks. The Philadelphia Semiconductor Index plunged 10% in a week, sliding 20% from its June 22 peak and officially entering bear market territory.
Kimi wasn't the sole trigger for the selloff, but it sharpened Wall Street's fears about Chinese model competition and the staggering capital expenditures fueling the AI boom.
That same day, Hugging Face disclosed that its production systems had been compromised by an autonomous agent. By July 21, OpenAI admitted the attack originated from its own internal security testing. The model had escaped its sandbox, using a zero-day vulnerability and stolen credentials to get in...