The release of Moonshot's Kimi K3 model upended assumptions that Chinese AI capabilities were meaningfully behind U.S. leaders such as OpenAI and Anthropic. A White House official accused China's Moonshot of improperly using U.S. AI models and Nvidia chips to create the Kimi K3 system that stunned the tech industry last week with its advanced capabilities. The company "acquired GB300-equipped servers and has accessed GB300s in Thailand, likely to train its AI models," White House Office of Science and Technology Policy Director Michael Kratsios said in a social media post Wednesday, making the case that Moonshot violated U.S. export control rules and companies' terms of service to build its product. The semiconductor servers Kratsios referenced are part of the Blackwell generation of Nvidia products, which the U.S. forbids from sale to Chinese companies. Though the Trump administration has allowed some sales of Nvidia's H200 chips, it continues to prevent sales of the more advanced Blackwells. In a time of both misinformation and too much information, quality journalism is more crucial than ever.

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U.S. and China to hold AI talks in September, sources say Talks between the United States and China on artificial intelligence are set to take place in September and be led on the U.S. side by Treasury Secretary Scott Bessent, sources have said. BEIJING - The United States and China will hold talks over artificial intelligence in September, five people familiar with the matter said, as the rival superpowers grapple with how to mitigate the risks posed by each other's increasingly powerful frontier models. The AI talks, a significant outcome of the summit between U.S. President Donald Trump and Chinese leader Xi Jinping in May, will likely take place before Xi's planned Sept. 24 visit to the U.S., said the sources, who asked not to be named as the information is not public. The dates, however, have not been finalized, they said. As economic, political and military rivals, China and the U.S. have grown increasingly anxious over each other's AI capabilities amid an accelerating global AI race. In a time of both misinformation and too much information, quality journalism is more crucial than ever.

Japan's AI gamble: Can technology offset the cost of an ageing society? Beneath the business towers of Tokyo's Otemachi district, a test is taking place to see whether artificial intelligence can help solve one of Japan's biggest economic challenges: a shrinking workforce. Deep underground, Marunouchi Heat Supply Company operates a 30km (18.6-mile) network of heating and cooling pipelines serving offices, commercial buildings and transport facilities in one of Japan's most important business areas. The company is now using AI to manage this complex infrastructure with the goal of moving towards more automated operations by 2027. Developed with the Tokyo-based AI company Preferred Networks, the project uses PlantPilot, an AI system trained on historical operating data and the expertise of experienced engineers.

Chinese AI sensation Moonshot's gamble on big models pays off People visit the Moonshot AI stand, featuring the Kimi K3 model, during the World Artificial Intelligence Conference in Shanghai on Saturday. Crowds rushed to an obscure corner of China's premier tech summit, moving past monumental booths from Alibaba Group Holding and Tencent Holdings to catch a glimpse of the hottest name in domestic artificial intelligence. Developers and users at the World AI Conference jostled for a closer look at Moonshot and its Kimi K3 -- the giant 2.8 trillion-parameter model whose release on Friday showed China was closing the gap on OpenAI and Anthropic PBC far quicker than anticipated. The startup became an instant global sensation, drawing comparisons to DeepSeek's 2025 breakout and plaudits from the likes of Tesla CEO Elon Musk. Such was the crush over the weekend that Moonshot blew through its entire stock of branded swag in just a few hours. Moonshot's emergence is a vindication not just for the country's AI industry, but also for founder Yang Zhilin.

Moonshot AI's Kimi upends conventional wisdom on U.S. lead over China People walk past the Moonshot booth promoting its Kimi K3 AI model, during the World Artificial Intelligence Conference in Shanghai on Friday. At an event in Beijing earlier this year, some of China's top artificial intelligence leaders warned that the country remained meaningfully behind the U.S. in developing cutting-edge AI models, with one executive arguing that "the gap may actually be widening." Leading U.S. firms also appeared confident they were significantly ahead. As recently as last week, one executive at Anthropic, who spoke on condition of anonymity, mused that the Claude maker's technology was roughly six to 12 months ahead of Chinese rivals. The Chinese AI lab released Kimi K3, a more advanced open-weight model that it said outperforms all rivals except for Anthropic's Claude Fable 5 and OpenAI's GPT-5.6 on overall capability.

Japan's parliament has enacted a controversial law introducing criminal penalties for desecrating the national flag. The passage of the legislation on Friday is part of an ongoing drive by staunchly conservative Prime Minister Sanae Takaichi to promote traditional patriotism and correct what her supporters call a "wrong" legal double standard. Under the newly enacted law, violators who publicly damage, remove or defile the national flag in a manner that causes others "extreme discomfort or disgust" face up to two years in prison or a fine of up to 200,000 yen ($1,250). According to Japanese broadcaster Kyodo News, the law covers physical acts of vandalism such as stomping, burning, or throwing mud in public spaces, as well as livestreaming such acts. The law drafting committee, led by former Chief Cabinet Secretary Hirokazu Matsuno, carved out highly specific legal exemptions. The ruling party clarified that the new law completely exempts physical paintings, digital media including anime, manga, video games, and generative AI, and even the miniature paper flags famously used to decorate children's restaurant meals.

The 225-issue Nikkei stock average slipped below 63,000 on Friday for the first time in about a month on an intraday basis. The 225-issue Nikkei stock average temporarily plunged over 4,100 points Friday afternoon due to selling of issues related to semiconductors and artificial intelligence following overnight falls in their U.S. counterparts. At 1:41 p.m., the index of 225 major issues listed on the Tokyo Stock Exchange's Prime section stood at 62,704.60, down 4,130.94 points, or 6.18%, from Thursday's closing. It slipped below 63,000 for the first time in about a month on an intraday basis. In the Tokyo market, memory chipmaker Kioxia Holdings and other key Nikkei component issues came under selling pressure. "We can't help thinking that the boom in generative AI-related stocks is about to end," an official of a bank-affiliated securities firm said.

Chipmaker Kioxia's market value halves from peak on AI selloff Kioxia overtook auto giant Toyota in market cap value in mid-June, but its ranking has since dropped to the fourth-largest Japanese company, as traders grow more critical over artificial intelligence. Japanese memory chipmaker Kioxia Holdings' market capitalization halved in just a month since becoming the nation's most valuable company, on growing concerns the artificial intelligence-driven rally in the sector has gone too far. Kioxia shares tumbled as much as 16% in Tokyo's morning trading on Friday, down 52% from last month's peak and losing at least ¥30 trillion ($185 billion) in value. In mid-June, Kioxia overtook auto giant Toyota in market cap value after the stock rallied more than 600% from the start of the year, driven by exuberance about demand for memory and data storage amid an AI boom. Its ranking has since dropped to the fourth-largest Japanese company. "The chip sector is vulnerable to the silicon cycle, and we've seen this pattern many times before," said Yugo Tsuboi, chief strategist at Daiwa Securities.

Google Search AI poses'unacceptable risk' to kids, report finds A new report from a California-based nonprofit says the artificial intelligence features built in to Alphabet's Google Search pose an unacceptable risk" to children. The artificial intelligence features built in to Alphabet's Google Search pose an "unacceptable risk" to children, according to a new report from the Youth AI Safety Institute at Common Sense Media, a California-based nonprofit. The study found that on test accounts configured for minors, the ubiquitous search engine's AI features failed to detect suicide risks, said an eating disorder symptom was normal, and provided instructions for creating deepfakes, or sexually explicit fake content. The report added that unlike standalone chatbots, Google's AI tools are built directly into the default search experience on school and personal devices, currently offering administrators or parents no way to disable them. The report specifically evaluated AI Overviews, which generate automated answers above traditional search results, and AI Mode, a conversational feature that lets users chat back and forth with the search engine. Rather than matching searches to a list of external links, the new features use generative AI to answer complex questions directly on the search page -- a format critics say presents the automated summaries as if they are definitive answers.