U.S. Alarmed by "Stolen" AI Technology: South Korea Singled Out for Hesitation Over "Sovereignty"

A massive AI model designed for anyone to download, modify, and use for free.

This is "Kimi K3," a new model unveiled by Beijing-based startup Moonshot AI.

The New York Times reported that according to measurements by the independent evaluation firm Vals AI, the model fell just short of Anthropic's latest offering but surpassed OpenAI's flagship model.

Immediately following the announcement, the Nasdaq fell 1.4%, the S&P 500 dropped 1%, Taiwan's stock market plunged over 6%, and the Japanese market tumbled 4%.

The market identified Kimi K3 as one of the triggers for the sell-off that day.

The fear that America's expensive, closed-source AI—which required astronomical investment—could be encroached upon by China's free, open-source AI fueled the selling spree.

Coinciding with the announcement, Chinese President Xi Jinping stated at an AI conference in Shanghai that "AI development should not be a solo performance by one country, but a symphony of international cooperation."

The U.S. political media outlet Axios also featured investor projections suggesting that 95% of corporate tasks can be handled by inexpensive open-source models, with only 5% requiring top-tier models.

In May, Moonshot AI raised $2 billion in investment, while Anthropic secured $65 billion in the same month.

In effect, they have caught up to the leaders with only one-thirtieth of the funding.

Caught in a rush, the U.S. is tightening the reins of control by framing the issue as "theft."

[Anja Manuel / Executive Director, Aspen Strategy Group: In the previous session, we discussed how serious "distillation" is, which is a euphemism for stealing our AI models. How are you responding to these unfair practices?]

[Jamieson Greer / U.S. Trade Representative: We are taking enforcement actions. We are talking about imposing tariffs and fighting in high-tech sectors.]

Representative Greer asserted that to maintain trade agreements with the U.S., countries must commit to U.S.-level export controls and investment screening.

The intention is to fundamentally block advanced technology from flowing into China via third countries.

However, Greer specifically singled out South Korea as one of the countries that hesitate by citing sovereignty.

[Jamieson Greer / U.S. Trade Representative: It is more difficult with Japan, South Korea, and the EU. To be clear, surprisingly, they have been hesitant. These countries say, "What about our sovereignty?" I don't particularly like that excuse, but some enjoy using it.]

Caught between America's "alignment" demands and China's "free" offensive, South Korea is in a difficult position.

Analysts suggest that South Korea's calculations have become significantly more complex as it faces the dual pressure of the allure of cheap, open-source AI and the control demands of its ally.

Reported by Kim, Soo Hyung | Video by Na Hong-hee | Graphics by Lee Jung-joo | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.