China’s Moonshot, Z.AI, and DeepSeek are challenging U.S. AI labs—and beating them on cost

China's Moonshot AI launched Kimi K3, an open-source model rivaling U.S. models like Anthropic's Fable 5 at lower costs, challenging U.S. AI dominance. DeepSeek also released competitive models (V3, R1) with efficient training methods, despite U.S. export controls on advanced chips. The developments caused market volatility, with Nvidia losing significant value.