Beijing-based Moonshot AI is powering its Kimi AI models, including the recently unveiled Kimi K3, through a computing agreement with Alibaba Group Holding Ltd. that grants access to a cluster of around 20,000 Nvidia Corp. processors. While sources cited by Bloomberg indicate the cluster relies on high-end Hopper-generation H200 processors, Alibaba explicitly disputed that specific chip model, with a spokesperson stating, "The alleged supply of H200 chips to Moonshot from us is completely groundless." Alibaba did not deny providing 20,000 Nvidia processors nor clarify which chip models make up the cluster. The arrangement comes as U.S. officials allege Moonshot also accessed restricted Blackwell-series chips through Southeast Asian rental channels to narrow the gap with American AI firms. The open-source Kimi K3 model rivaled top-tier offerings from Western pioneers like OpenAI and Anthropic on key benchmark metrics. Using Alibaba’s cloud framework, Moonshot’s Kimi models have outperformed Alibaba’s in-house Qwen AI products on several performance benchmarks, causing disappointment among some Alibaba staff. BABA stock gained 5% on Friday and was set to end the week at a near two-month high.