Chinese artificial intelligence company Moonshot AI has released "Kimi K3" as an open-source model, but The New York Times has analyzed that most users will "ultimately end up using it as a paid service."

Chinese AI firm Moonshot AI released the weights and programming code of its ultra-large AI model "Kimi K3" on the 27th, local time.

Theoretically, anyone can download the model, use it, or modify it to fit their needs.

However, the reality is different.

This is because the model is so massive that it is difficult to run on regular computers.

The New York Times pointed out that while Kimi K3 is technically an open-source model, most users will eventually have to use it through Moonshot's paid services or via companies that have signed license agreements with Moonshot.

Moonshot has also introduced a commercial licensing policy with this in mind.

Companies that operate platform-as-a-service (PaaS) using Kimi K3 and have generated more than 20 million dollars—approximately 29.4 billion won in Korean currency—in revenue over the past 12 months must sign a separate licensing agreement with Moonshot.

The strategy is to keep the model free for general developers while charging appropriate fees to large service enterprises.

Kevin Xu, founder of AI-focused investment firm Interconnected Capital, evaluated that this is significant as it marks the first instance where Moonshot has clearly presented commercial use conditions.

Behind Moonshot's implementation of this strategy lies the chronic profitability issue faced by Chinese AI companies.

The New York Times analyzed that "Chinese AI companies still have not found the answer to how to make money with AI."

While AI models require massive computing resources, service fees in China remain low, leading to a structural issue where deficits grow as the user base increases.

Unlike U.S. Big Tech companies that generate profits based on enterprise clouds, Chinese firms are struggling with monetization as they compete mainly centered around free or low-cost consumer services.

This licensing policy is interpreted as a compromise aimed at retaining the benefits of open source while preventing free-riding by large corporations and securing revenue.

Chinese AI companies are also facing difficulties in securing computing resources due to U.S. export controls on advanced semiconductors.

In fact, just two days after releasing Kimi K3, Moonshot temporarily suspended new user registrations citing a shortage of AI chips.

Jeffrey Ding, a professor at George Washington University, explained that Chinese companies chose open source not as an end in itself, but as a strategy to secure competitiveness as latecomers, noting that their ultimate goal is still to generate profit.
 
(Photo: Yonhap News)