Microsoft is negotiating a revenue-sharing agreement with Chinese startup Moonshot AI for its Kimi K3 model. Amazon and Google are also participating in these financial discussions. The talks focus on terms for utilizing Moonshot’s powerful large language model.
Moonshot launched the open-weight Kimi K3 model in July 2026. Evaluations suggest the system competes directly with leading U.S. artificial intelligence models.
Western firms are considering Chinese AI systems to reduce development costs and enhance service offerings. A potential deal would impact Microsoft’s Azure cloud services and its global AI product strategy.