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

Financing Weekly Report | Amazon Invests $50 Billion in OpenAI; Axis Robotics Completes $12 Million Seed Round Financing

Pump.fun Reports Employee Layoffs Before Millions of Dollars Worth of PUMP Token Vesting

Is HYPE's Continuous Decline Due to Rumors of TradeXYZ Going Solo?

The Trap of Sterilized Pesos: The Hidden Risk in the Treasury's Balance Sheet

Is lowering inflation enough for Javier Milei to be reelected?

Argentine Stocks: The Three That Rose the Most in July and Why They Still Have Potential

When will I receive ANSES payments: retirees, AUH, unemployment, and other benefits for Monday, August 3

Important News from Last Night and This Morning (August 2 - August 3)

Bitget to End Services for Japan, Gradual Restrictions Ahead

Will ERC-8056 Be the Final Answer to the 40-Year-Old Securities Reconciliation Dilemma?

Australia Sues Telegram Over Terrorist Content

Warning Against Overestimating the Clarity Act - Former CFTC Chairman

August 3 Cryptocurrency Update: Bitcoin and Ethereum in a Wait-and-See Mode After FOMC Meeting

Sky Protocol Achieves Remarkable Milestone with Annual Revenue Approaching $419 Million! Demand for USDS Boosts DeFi Earnings!

Breaking: Arbitrum Foundation Proposes $43 Million Budget for 2027, What Do You Think? Governance Debate Heats Up!

Important: MakerDAO Adjusts Governance During Transition to Sky! Fine-Tuning Continues Towards Endgame

Ethereum Foundation Launches Guide for Governments! Is It Trying to Say, "We're More Than Just a Cryptocurrency"?

Is it true? The company famous for Dogecoin has secured an 80 billion yen contract with AI!? Is this a game changer?

Great News! Kansai Electric's Points Can Finally Be Exchanged for Jpyc (Yen-Pegged) on Polygon!

Breaking: ENS Labs Abandons Fund Transfer to Foundation! DAO Wallet Preserved Amid Delegate Outrage

Exciting News: NEAR Introduces Staking for AI Usage! Tokens Won't Be Consumed!

Curious Invention for the Home: The Interactive Mug to Personalize Your Mornings

After 3 reverse stock splits and a $13.5M loss, this real estate firm bet $8M on crypto it may not be allowed to withdraw

Infidelity, Escape, and a Million-Dollar Divorce: The $730 Million Settlement That Shook the Dubai Royal Family

Cryptocurrency Market in Russia to Receive General Rules and a Register of Digital Depositories

SEC keeps Nasdaq bitcoin options on hold after granting CME review

The Self-Proclaimed Satoshi Nakamoto Attacks Bitcoin Governance Model

XRP extends the longest active ETF inflow streak in crypto as rival funds struggle for fresh cash

Hank Green and the AI Addiction: The Warning Creators Ignore











