Moonshot Halts Kimi K3 Subscriptions Amid AI Race

Moonshot AI suspended new subscriptions for its Kimi K3 model after a surge in demand overwhelmed its GPU capacity within days of launch, highlighting the infrastructure challenges facing Chinese AI firms.

The suspension came as Alibaba rolled out its Qwen 3.8 Max model and the Trump administration reportedly revived a push to ban Chinese AI models over cybersecurity concerns.

The incident underscores the intense competition in China's AI sector, where companies are racing to deploy large language models despite hardware constraints and regulatory uncertainty.

The AI race is also heating up globally, with Big Tech earnings looming and open-weight models from China challenging the dominance of US firms like OpenAI.