Microsoft is reportedly considering replacing OpenAI and Anthropic models with Chinese firm Moonshot AI's Kimi K3 model inside its Copilot chatbot and Azure platform, a move that could save the company up to $600 million, or 60% per token, according to The Information. Kimi K3, released on July 16 as an “open weight” model, scored 1679 points in Arena’s Frontend Code leaderboard, besting OpenAI’s GPT-5.6 Sol and Anthropic’s Fable 5. Former White House AI czar David Sacks called the release “concerning,” arguing U.S. state-level data center bans will hamstring AI dominance. OpenAI and Anthropic executives have raised alarms about cheaper Chinese models as a national security threat, per the Wall Street Journal. Kimi K3 charges $15 for every one million tokens of output, compared to Anthropic’s Claude Fable 5 at $50. Treasury Secretary Scott Bessent said the U.S. could issue sanctions against Beijing to discourage “IP theft,” citing detected “watermarks” of U.S. large models. A Microsoft spokesperson declined comment.