Alibaba-backed NYSE:BABA Moonshot has unveiled Kimi K3, a 2.8 trillion-parameter AI model it says is the world's largest open-weight system and one of the strongest signs yet that Chinese developers are closing the gap with their U.S. rivals.

The headline number is the model's size, but the more important detail is what Moonshot says it can do. Kimi K3 comes with a 1 million-token context window and is built for advanced reasoning, long coding tasks and complex knowledge work. Moonshot also claims the model performed competitively with Anthropic's Fable 5 in some tests while beating several OpenAI models in GPU optimization.

Moonshot develops large language models for consumers and businesses and counts Alibaba among its backers. Its latest release adds to a growing wave of capable, lower-cost Chinese models from companies such as Z.ai and MiniMax.