# Chinese AI startup undercuts US with cheap Kimi K3 model 2026-08-08T23:00:00+00:00 | Technology | Indian Opinion Desk Corroboration: 1 independent outlet China is turning the AI race on its head with far cheaper models. Businesstoday.in reports that while OpenAI, Google and Anthropic have led the field for years, Chinese startups are now launching powerful artificial intelligence at a fraction of the cost. Moonshot AI's Kimi K3 is the latest example, challenging Silicon Valley on price and performance. The video explains that AI distillation, a technique to shrink large models without losing much accuracy, and China's embrace of open-source AI are giving it a big edge. The report also discusses Huawei's chip ambitions and how the affordability battle could reshape the future of artificial intelligence. ## Coverage - businesstoday.in Tags: affordability, AI race, China, Moonshot AI, open source, United States Canonical: https://indianopinion.org/chinese-ai-startup-undercuts-us-with-cheap-kimi-k3-model/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/chinese-ai-startup-undercuts-us-with-cheap-kimi-k3-model/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.