Nasdaq Falls 1.2% as Moonshot's Kimi K3 Deepens AI Spending Fears
Updated
Updated · The New York Times · Jul 17
Nasdaq Falls 1.2% as Moonshot's Kimi K3 Deepens AI Spending Fears
3 articles · Updated · The New York Times · Jul 17
Summary
Friday's sell-off hit U.S. tech hardest, with the Nasdaq down 1.2%, the S&P 500 off more than 0.5%, and Alphabet, Meta and SpaceX falling 2% to 4%.
Moonshot's release of Kimi K3 sharpened concerns that huge AI outlays may not deliver expected returns, especially as the Chinese startup said the model matches top U.S. systems.
Vals AI benchmarks cited in the report said Kimi K3 outperformed OpenAI's GPT-5.6 Sol and ranked just below Fable, underscoring rising competitive pressure from China.
That pressure comes as Washington leans toward tighter AI regulation while Moonshot plans to open-source Kimi K3 in late July, highlighting a widening U.S.-China policy split.