Alibaba-supported Chinese startup Moonshot has introduced its latest generative AI model named 'Kimi K2 Thinking,' which is touted to surpass OpenAI's ChatGPT in its ability to determine user intent without detailed instructions. Moonshot, operating out of Beijing, previously launched the K2 model in July.
The development of 'Kimi K2 Thinking' comes during heightened competitive pressure from Nvidia's CEO, Jensen Huang, urging the U.S. to escalate its AI race against developments in China. Companies like Airbnb are recognizing that some Chinese AI solutions are competitive, offering viable and cost-effective alternatives to those provided by OpenAI.
Despite facing restrictions on acquiring cutting-edge chip technology, Chinese companies such as DeepSeek are progressing by developing open-source AI models that are substantially less expensive for users compared to ChatGPT. DeepSeek reported spending $5.6 million on its V3 model, a stark contrast to the considerable investment by OpenAI.
A source close to Moonshot revealed the Kimi K2 Thinking model required $4.6 million for training. This model has been designed to autonomously manage between 200 to 300 tools, reducing the dependency on human intervention, as stated by Moonshot, though CNBC has not independently confirmed the figures from DeepSeek or Moonshot.
In a related release, DeepSeek introduced an AI model enhancing performance by incorporating visual cues to extend the context processed simultaneously last month.