Kimi Approaches + Stock Market Plummets, US AI Factions Accelerate Alliance in Two Weeks
On July 16, Kimi K3 was launched and announced that it would open full weights 11 days later. The next day, it further intensified the existing sell-off in US chip stocks. The Philadelphia Semiconductor Index fell 10% in a week, retreating 20% from its peak on June 22, entering bear market territory. Kimi is not the sole reason for the decline, but it amplified market concerns about competition from Chinese models and massive capital expenditures in AI.
On the same day, Hugging Face disclosed that its production system had been breached by autonomous agents. On July 21, OpenAI admitted that the attack originated from its own internal security testing. The model broke through the isolated environment, exploiting zero-day vulnerabilities and stolen credentials to access Hugging Face. Chinese models are encroaching from the outside, while the US's own cutting-edge agents are spiraling out of control internally.
On July 20, the Trump administration began re-discussing restrictions on Chinese open-weight models, including entity lists, procurement restrictions, and security warnings. On the 22nd, White House technology advisor Michael Kratsios accused the Dark Side of the Moon of massively distilling Anthropic's Fable 5. Treasury Secretary Scott Bessent subsequently mentioned sanctions and entity lists.
On July 23, Congress proposed an AI "kill switch," mandatory independent security audits, and the "Counter Threats and Security Risks Cooperation Act." The last bill is set to grant AI companies limited antitrust exemptions, allowing competitors to share information on distillation, model theft, and uncontrollable risk intelligence, as well as coordinate delays in launching high-risk models.
On July 24, dozens of organizations, including Nvidia, Microsoft, Meta, and Hugging Face, jointly supported open weights, while Anthropic did not sign. On the 27th, Nvidia, along with 37 organizations, established the Open Secure AI Alliance; the complete weights of Kimi K3 were subsequently opened. Anthropic quickly responded, opposing a complete ban on open weights but supporting restrictions on advanced chips, combating industrial-scale distillation, and mandatory security testing. Jensen Huang and Sam Altman are also scheduled to meet with Senator Mark Warner on the 28th to discuss related issues.
The US has yet to form a unified approach, but factions have already begun to compete for talent, legislate, and form alliances. Government hawks want to restrict Chinese models, Congress seeks to expand auditing and shutdown powers; chip, cloud, and open-source companies aim to maintain an open ecosystem; Anthropic hopes to control chips and distillation while turning security testing into a unified threshold. The external competition posed by Chinese models, combined with the internal crisis of uncontrolled US agents, is accelerating the alliance among various parties.
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

Why 110 corporate blockchains are headed for a massive shakeout – and Coinbase’s secret plan to absorb them
![[Editorial] The Fourth Transition: Can Korea Write the Next Rules?](/public-static/24_18140364e2.png?format=avif)
[Editorial] The Fourth Transition: Can Korea Write the Next Rules?

Crypto: FTX Approaches $11 Billion Repaid to Creditors

What is a mainnet? The production blockchain explained

What is a testnet? The blockchain testing ground explained

What is a zero-knowledge proof? Privacy and scaling explained

What is proof of work? The consensus mechanism that powers bitcoin

Minicoin Launches IP RWA Network on Creditcoin, Secures Official Authorization for minini IP from IPX (LINE FRIENDS)

$2.2 billion gains in 2025 for Donald Trump: Senator calls for anti-corruption office

Is Axis Robotics' $12 million seed funding worth participating in?

What is a market maker and a market taker? The trading minute

USD.AI: The Hidden Beneficiary of the AI Boom

CloudSome Completes $3.6 Million Seed Round Financing to Build Multi-Model AI Infrastructure for Web3 High-Frequency Business

DeepSeek Brings Spring to AI Application Entrepreneurs

The Drama of AI Stock Rebound: A Showdown Between a 20-Year-Old Prodigy and a 50-Year-Old Veteran

Reasons Why Domestic Financial Companies Choose Canton

The Main Players in Structural Selling Are Not Just DAT Companies|HashHub Research

Dollar: After a Month of Stability, the Market Identifies a New Risk Front for August

Election Sunday in Santiago del Estero: Gerardo Zamora Seeks to Consolidate Power Against a Fragmented Opposition

The Mirage of Efficiency: Has Artificial Intelligence Improved Recruitment?

Has Robinhood Summer Arrived? Four Experienced Players Review: Survival Rules After the Meme Frenzy

Strategy Shift from Bitcoin Focus, Multiple Securities Firms Evaluate Mizuho

Orange Alert for Severe Storms, Hail, and Gusts in the AMBA and Several Provinces

Telegram Crypto Coin: What is TON and How to Buy Toncoin

How to Pay for Telegram Premium with Crypto and Other Methods in Russia in 2026

Buying Telegram Stars with Cryptocurrency: How to Pay for Telegram Stars in Russia

Cryptocurrency Signals on Telegram: 10 Telegram Channels for Trading in 2026

How to Withdraw Crypto from a Telegram Wallet: A Step-by-Step Guide to Safe Methods

a16z: From Companies to DAOs, DUNA May Become the Next Generation of Organizational Form










