- Beijing-based AI startup Moonshot is using a cluster of around 20,000 NVIDIA chips leased from backer Alibaba to train its Kimi K3 model.
- Alibaba disputed a Bloomberg report that the cluster uses high-end H200 processors, but did not deny providing the total number of chips.
- Moonshot allegedly accessed restricted Blackwell-series chips through Southeast Asian rental channels, according to U.S. officials.
Chinese AI startup Moonshot AI is powering its flagship Kimi K3 model through a computing agreement with backer Alibaba Group Holding Ltd that grants access to a cluster of around 20,000 Nvidia Corp processors, according to reports.
The open-source Kimi K3 model rivaled top-tier offerings from Western pioneers like OpenAI and Anthropic on key benchmark metrics earlier this month. The arrangement highlights how top Chinese tech contenders remain dependent on advanced Western semiconductors despite escalating trade tensions.
However, the alliance has created internal friction at Alibaba. Moonshot’s Kimi models have outperformed Alibaba’s in-house Qwen AI products on several performance benchmarks, causing disappointment among some staff members who noted both teams had access to comparable training resources.
Questions also remain regarding the precise Nvidia hardware specifications. Bloomberg reported the cluster consists of Hopper-generation H200 processors, but an Alibaba spokesperson strongly rejected that detail, stating: “The alleged supply of H200 chips to Moonshot from us is completely groundless.”
Meanwhile, U.S. regulators are scrutinizing how Chinese firms obtain advanced hardware. A person familiar with Moonshot’s procurement operations confirmed to Bloomberg that the startup maintains a pipeline to access Blackwell processors through Southeast Asia.
Both Moonshot and Nvidia declined to comment on that arrangement. BABA stock gained 5% on Friday, set to end the week at a near two-month high.
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