Kimi K3 Launch Triggers Global Tech Selloff, Echoing DeepSeek Shock

Moonshot AI's Kimi K3 scored 57 on the Artificial Analysis Intelligence Index—beating GPT-5.5 and matching Claude Fable 5 at a fraction of the price, with a full weight drop under Modified MIT license on July 27. Global markets reacted sharply: Taiwan's benchmark fell over 6%, Japan closed down 4%, and the Nasdaq slid 1.5%, while the VanEck Semiconductor ETF (SMH) dropped below its EMA support for the first time since April, down more than 20% from its late-June high.

Why it matters: Wall Street analysts framed the release as confirmatory of China's steady AI catch-up, with Moonshot AI now valued at roughly $31.5 billion after Alibaba's $1 billion investment, and Kimi K2.5 already powering Cursor's Composer 2.