Chinese Startup Moonshot Launches AI Model That Claims to Outperform ChatGPT at Fraction of Training Cost

Nov 06, 2025
CNBC
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Summary

Alibaba-backed Chinese startup Moonshot unveils 'Kimi K2 Thinking' AI model that reportedly outperforms ChatGPT in autonomous task completion while costing just $4.6 million to train versus OpenAI's billions, as major U.S. companies like Airbnb embrace cheaper Chinese alternatives amid escalating global AI competition.

Key Points

  • Alibaba-backed Chinese startup Moonshot releases its new AI model 'Kimi K2 Thinking' which claims to surpass OpenAI's ChatGPT in agentic capabilities and can automatically select 200-300 tools to complete tasks independently
  • The new model costs $4.6 million to train, significantly less than the billions spent by OpenAI, as Chinese AI companies continue developing cost-effective alternatives despite U.S. chip restrictions
  • Major U.S. companies like Airbnb begin publicly endorsing Chinese AI models as viable and cheaper alternatives to OpenAI's offerings, intensifying the global AI competition between the U.S. and China

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