"Chat are we cooked?" Afternoon market update

A chatbot from Beijing just took out in-via today and pushed Apple to the most valuable company in the world. And this is now the second time we've seen a very specific pattern, playback. This week Chinese startup MoonShot AI released Kimi K3. This is a 2.8 trillion parameter model and it is the largest open-weight model ever built. And this announcement is behind the global chip sell-off today and inadvertiently pushed Apple to new heights. In blind developer testing K3 ranks first in the world for front-end code and this is a head of and open AI's best models. But here's the interesting part. It only costs three bucks per million input tokens, which is mid tier money for a foreign model. And almost unbelievably, Moonshot built this under US export controls on ships that were deliberately weakened by Washington. Basically they're using chips with governors on them. So Moonshot rolling out this model is like winning an Olympic sprint, wearing concrete shoes. Now the neers consent move in the market this morning was that the AI mode just cracked and that we should be on the of side of the chip manufacturers. But the truth is here, the market has already run this experiment before. And look no further to deep seek from last year. This is when Nvidia lost more than $600 billion in one session. And it was the largest single-day value loss in market history. All thanks to deep seek which by the way, I've never heard anyone talk about since. And if we look back at that time as a lesson, compute demand rose, cheaper intelligence means more usage, more usage means more chips. And Nvidia after the initial 16% sale off from deep seek ended up finishing up 57% six months later. But the sell-off today is already bouncing because the market is picking up on one key detail about this Moon shot model. And that's the fact that the K3 model is not small or efficient. And just serving this thing takes the most expensive equipment that Nvidia manufacturers. So while you and I can go and download this thing completely for free, actually running it would cost about $4 million in hardware. So the humor here is that the model that triggered the sell-off only runs at scale on the hardware games that sold off on the news of its release.