Diplomatic Channels Open Even as the Bombing Continues: Words Speak Louder Than Actions

China threatens AI profitability as semiconductors roll over

Key Takeaways

• China Disrupts the AI Trade Again: The complexion of the AI trade is in the process of changing yet again. In a repeat of the DeepSeek selloff in the winter of 2025, the launch of Chinese start-up Moonshot AI’s Kimi K3 model has opened up some price competition in open-source models for the likes of Anthropic and OpenAI. The revenge of cheaper, customized models now threatens the U.S. frontier model-makers.