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China landed a one-two punch on America’s AI lead, and neither blow will cost users a dime. On Friday, The Verge reports that Moonshot AI unveiled Kimi K3, a 2.8 trillion-parameter model that the company claims ranks above nearly every U.S. system except OpenAI‘s GPT-5.6 Sol and Anthropic‘s Claude Fable 5. Days later, Alibaba followed with a preview of Qwen3.8, a 2.4 trillion-parameter model it calls “second only to Fable 5.”
The bigger story is the price tag. Both companies are releasing their models publicly, free for developers to download, modify and build on. Most US labs keep their best models locked up. China is giving theirs away.
It’s the biggest jolt to the industry since DeepSeek’s low-cost model rattled Silicon Valley last year, and it raises a real question for American AI companies: does pouring billions into chips and data centers still guarantee they’ll win the AI race?
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