China's Moonshot AI debuted Kimi K3 last week, which "crushed a bunch of notable benchmarks" and "rivals some leading US models at a fraction of the expense," seizing Silicon Valley's attention. The model triggered panic that China is closing in on the US in the AI market and accusations that Chinese models train on work by Anthropic, OpenAI, and Google. The tension reflects a strategy divide: China embraces open-weight models, while the US remains mostly closed. OpenAI executive Dean Ball wrote on X that he is "personally surprised the Chinese state continues to allow the open sourcing of models this good, given potential risks," and predicted the Trump Administration would "create large amounts of regulatory risk around the use of open-weight Chinese models" to manufacture "FUD." He later clarified this was a prediction, not a recommendation. The response was swift, with critics calling it "regulatory capture." Anthropic and OpenAI maintain their models are too powerful to be open, warning that open-weight Chinese models threaten national security and their businesses.