Chinese startup Moonshot, backed by Alibaba, launches popular generative AI chatbot Kimi, claiming superiority over OpenAI’s ChatGPT in understanding user needs without explicit instructions. Moonshot’s Kimi K2 Thinking model builds on previous K2 release, amid Nvidia CEO urging U.S. to advance in AI race against China. Some U.S. companies consider Chinese AI models as viable and cost-effective alternatives. Despite U.S. restrictions, Chinese company DeepSeek releases open-sourced AI models with significantly lower user fees than ChatGPT, claiming $5.6 million spent on V3 model compared to billions by OpenAI. Moonshot’s Kimi K2 Thinking model costs $4.6 million to train, automatically selecting tools to complete tasks with minimal human intervention. DeepSeek introduces new AI model enhancing performance by using visual clues to expand information context.

Read more at CNBC: Alibaba-backed Moonshot releases new AI model Kimi K2 Thinking