The contest between China and the United States for supremacy in artificial intelligence escalated on Friday when the Chinese start-up Moonshot AI released a new A.I. model that appeared to narrow the lead held by well-funded American competitors.
Moonshot said that the model, Kimi K3, was the world’s largest open-source A.I. system, allowing anyone to use, modify and build on it freely. The company said that Kimi K3 performed as well as leading models from OpenAI and Anthropic at some key tasks.
The release coincided with an address by Xi Jinping, China’s leader, in which he outlined an ambitious vision for global A.I. development that cast China as the champion of an open approach to the technology.
“A.I. development should not be a solo performance by a single country but a symphony of international cooperation,” Mr. Xi said. China was “ready to work with all parties to seize the opportunities of A.I. development,” he said.
The market reaction was immediate. Stocks fell on Friday, with the Nasdaq dropping about 1 percent as investors sold shares of U.S. companies that make the computer chips needed to power A.I., including Nvidia and Intel.
The developments underscored the geopolitical stakes of the U.S.-China contest for leadership in what many see as the defining technological race of our time. President Trump has repeatedly framed maintaining America’s lead in artificial intelligence as a strategic imperative for preserving the country’s economic and national security.
