Moonshot AI's Kimi K3 triggers a global tech selloff, briefly costs Nvidia its crown

A Chinese lab's giant open model matched Silicon Valley's best overnight, and Wall Street's chip trade cracked in response.

Beijing-based Moonshot AI released Kimi K3 on Friday, a 2.8-trillion-parameter open-weight model it calls the largest ever released, priced at $15 per million output tokens against $50 for Anthropic's Fable 5. Moonshot says the model performed competitively with Fable 5 and substantially outperformed OpenAI's GPT-5.6 Sol, and one independent Arena.ai benchmark ranked it the best available system. The release triggered what traders called a second "DeepSeek shock": Taiwan Semiconductor fell 7% despite reporting 77% profit growth, SoftBank dropped 9%, and Nvidia slipped enough to briefly lose its title as the world's most valuable company to Apple.