A Chinese AI startup, Moonshot, has disrupted expectations in artificial intelligence development after its Kimi K2 Thinking model surpassed OpenAI’s GPT-5 and Anthropic’s Claude Sonnet 4.5 across multiple performance benchmarks, sparking renewed debate about whether America’s AI dominance is being challenged by cost-efficient Chinese innovation.
Beijing-based Moonshot AI, valued at US$3.3 billion and backed by tech giants Alibaba Group Holding and Tencent Holdings, released the open-source Kimi K2 Thinking model on November 6, achieving what industry observers are calling another “DeepSeek moment” – a reference to the Hangzhou-based startup’s earlier disruption of AI cost assumptions.
Performance metrics challenge US models
According to the company’s GitHub blog post, Kimi K2 Thinking scored 44.9% on Humanity’s Last Exam, a large language model benchmark consisting of 2,500 questions across a broad range of subjects, exceeding GPT-5’s 41.7%.
The model also achieved 60.2% on the BrowseComp benchmark, which evaluates web browsing proficiency and information-seeking persistence of large language model agents, and scored 56.3% to lead in the Seal-0 benchmark designed to challenge search-augmented models on real-world research queries.
VentureBeat reported that the fully open-weight release meeting or exceeding GPT-5’s scores marks a turning point where the gap between closed frontier systems and publicly available models has effectively collapsed for high-end reasoning and coding.
Cost efficiency raises questions
The popularity of the model grew after CNBC reported its training cost was merely US$4.6 million, though Moonshot AI did not comment on the cost. According to calculations by the South China Morning Post, the cost of Kimi K2 Thinking’s application programming interface was six to 10 times cheaper than that of OpenAI and Anthropic’s models.
The model uses a Mixture-of-Experts architecture with one trillion total parameters, of which 32 billion are activated per inference, and was trained using INT4 quantisation to achieve roughly two times generation speed improvement while maintaining state-of-the-art performance.
Thomas Wolf, co-founder of Hugging Face, commented on X that Kimi K2 Thinking was…
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