Submission + - China's Moonshot in talks with Microsoft, Amazon, Google over K3 revenue sharing (reuters.com)
schwit1 writes: China's Moonshot AI is negotiating revenue-sharing agreements with Microsoft, Amazon, and Alphabet's Google, that would allow the U.S. cloud giants to host its blockbuster Kimi K3 model, three people familiar with the talks said.
Any deal could mark the first big revenue-sharing pact between a Chinese AI firm and a major U.S. cloud company.
The discussions highlight how China's leading AI models, often far cheaper than Western offerings, are gaining traction in the U.S., despite national security concerns in Washington that have led to bans on exports of AI chips to China. They are also taking place despite critical comments about Moonshot from senior U.S. officials.
IPO-bound Moonshot is seeking up to a 30% share of revenue generated from K3-related services on Microsoft's Azure, Amazon Web Services and Google Cloud, according to the sources who declined to be identified because the discussions are private.
That would be in line with terms that sources have said the startup has outlined for major customers using the open-weight model.
Moonshot has come under fire from U.S. Treasury Secretary Scott Bessent who said last month that he might add it to a trade blacklist. U.S. officials have accused the Beijing-based company of stealing from Anthropic's most sophisticated model, Fable, to help create Kimi K3 and illegally acquiring Nvidia chips.
Founded in 2023 by Carnegie Mellon-trained AI researcher Yang Zhilin, Moonshot is backed by several Chinese tech giants including cloud computing giant Alibaba.
Any deal could mark the first big revenue-sharing pact between a Chinese AI firm and a major U.S. cloud company.
The discussions highlight how China's leading AI models, often far cheaper than Western offerings, are gaining traction in the U.S., despite national security concerns in Washington that have led to bans on exports of AI chips to China. They are also taking place despite critical comments about Moonshot from senior U.S. officials.
IPO-bound Moonshot is seeking up to a 30% share of revenue generated from K3-related services on Microsoft's Azure, Amazon Web Services and Google Cloud, according to the sources who declined to be identified because the discussions are private.
That would be in line with terms that sources have said the startup has outlined for major customers using the open-weight model.
Moonshot has come under fire from U.S. Treasury Secretary Scott Bessent who said last month that he might add it to a trade blacklist. U.S. officials have accused the Beijing-based company of stealing from Anthropic's most sophisticated model, Fable, to help create Kimi K3 and illegally acquiring Nvidia chips.
Founded in 2023 by Carnegie Mellon-trained AI researcher Yang Zhilin, Moonshot is backed by several Chinese tech giants including cloud computing giant Alibaba.