Moonshot released Kimi K3, a 2.8 trillion-parameter open-weight AI model, triggering a sharp selloff in AI and semiconductor stocks. The move drew immediate comparisons to the 2025 DeepSeek event, which caused a similar market rout.
A 2.8 Trillion-Parameter Model
Kimi K3 is an open-weight model, meaning its trained parameters are publicly available for developers and researchers to use and modify. At 2.8 trillion parameters, it's one of the largest models ever released. The company behind it, Moonshot, has positioned the model as a major step forward in AI capability, though specific performance benchmarks were not disclosed in the announcement.
Stocks Tumble as Investors React
The selloff hit AI and semiconductor stocks hard. Shares of major chipmakers and AI software companies fell sharply in the hours after the release. Investors appeared to worry that a powerful open-weight model could disrupt the competitive landscape, potentially reducing demand for proprietary models and the hardware that powers them. The selloff was broad, with no single company spared.
Echoes of the DeepSeek Event
The market reaction was quickly compared to the 2025 DeepSeek event, when a Chinese AI lab released a model that sparked a similar selloff. That panic reversed within days, but the memory of it still looms over the sector. The comparison suggests that investors are again pricing in the risk that open-weight models could upend the economics of AI development.
Moonshot has not commented on the market reaction. The company's focus remains on the technical release. For now, the question is whether this selloff will follow the DeepSeek pattern — a brief shock that fades as the market reassesses. Investors are watching for the next move from both Moonshot and the broader industry.
