Kimi K3 AI model tanks chip stocks, triggering DeepSeek-style market panic

Chinese startup Moonshot AI unveiled Kimi K3, an open-weight model with 2.8 trillion parameters, sending chip stocks sharply lower on Wall Street in scenes reminiscent of the DeepSeek panic. Investors fear that powerful open-weight Chinese models undercut demand for expensive AI hardware. The announcement made Friday a painful session for the tech sector.