Chinese startup Moonshot on Thursday released its latest generative artificial intelligence model which claims to beat OpenAI's ChatGPT in "agentic" capabilities — or understanding what a user wants without explicit step-by-step instructions.

The model, called "Kimi K2 Thinking," builds on the K2 model released in July by Beijing-based Moonshot, which is backed by Alibaba .

The update comes as Nvidia CEO Jensen Huang this week again urged the U.S. to press ahead in a race against Chinese-developed AI. Some major U.S. companies such as Airbnb have begun to publicly tout how some Chinese AI models are as viable — and often cheaper — alternatives to OpenAI's.

Despite U.S. restrictions on Chinese businesses' access to high-end chips, companies such as DeepSeek h

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