U.S. tech stocks and Asian markets plunge on the public release of a Chinese AI model

After Chinese AI startup Moonshot AI unveiled its opensource model ‘Kimi K3,’ tech stocks swung sharply in U.S. and Asian markets. On the 17th in New York, the Nasdaq, S&P 500, and Dow Jones all fell, and semiconductorrelated stocks such as Nvidia and Intel also showed weakness. In Asian markets as well, stocks in Taiwan, Japan, and China all plunged together. In particular, Taiwan's TSMC stock fell sharply as plans to expand capital investment weighed on it, while South Korea avoided the direct impact because the market was closed for a public holiday. The market interpreted Kimi K3 as narrowing the performance gap with closed U.S. AI models, potentially affecting AI companies' revenue models and future infrastructure investment prospects. However, experts also pointed to the fact that the recent rise in semiconductor stocks had been excessive as a background factor for the decline, and said that it remains to be seen whether this shock will continue.