China’s Kimi k3 Just Blocked New Users?? ++ Why Open AI is trying to ban Kimi

[00:00:01]Moonshot AI has literally set the world a fire in the past week. Kimmy K3 was their latest release and for the first time the question wasn't whether the Chinese model was a better value or not. It was simply put if the Chinese model is simply put better or not. But today we're not going to talk about that. In fact, we're going to talk about something different that the Kimmy K3 that the executive that Moonshot AI announced over on X.

[00:00:32]And that is this.

[00:00:34]Kimmy K3 has received far more love than we expected and our GPUs are feeling it.

[00:00:40]Over the past 48 hours demand has pushed close to the limits of our current capacity and to protect the experience of existing subscribers, we're temporarily pausing new subscriptions and prioritiz- prioritizing compute for current members. Existing subscribed users are not affected. Okay? Now, I want you to think about what's that saying there.

[00:01:02]That is a public company announcing that they aren't going to take your money.

[00:01:07]Simply put, they'd like to take your money, but they can't.

[00:01:10]We're going to discuss what that means today and more. But first, I want to welcome you to Rubin Tech where we meet at the intersection of tech, I guess a little bit of politics and finance.

[00:01:20]Please be sure to like and subscribe down below, okay? It really helps the channel. Now, the first thing we want to talk about is what does that mean from Kimmy K3? Why are you bringing this up to us, Rubin?

[00:01:30]Because there's a large narrative out there that there's actually a secretly somehow an oversupply of compute.

[00:01:37]And that the entire market's going to collapse. If it's not going to collapse today, it's going to collapse tomorrow certainly because there's so much compute out there and nobody's using AI.

[00:01:46]Yet we keep hearing stories like this from Kimmy K3 and other such people. We heard it from Deep Seek a few months ago.

[00:01:53]We heard it from Claude before that.

[00:01:55]And simply put what Kimmy's saying the the tweet was a little bit longer than that. But what they were saying is not that they don't have the money for servers. They weren't saying, "We don't have enough money for servers."

[00:02:08]They're saying there is not enough compute available.

[00:02:12]They're not saying, "Hey, give us a week, guys. We got going to go get some more servers. We'll be online." They're telling us there's a big problem here.

[00:02:19]Our servers are being hit and there's not much out there on the market.

[00:02:24]And so we heard this last month from Google.

[00:02:27]When they had a deal with Facebook last year, 10 billion dollars in compute from Facebook.

[00:02:34]But last month they said, "You know, you guys are spending in excess of that, right? Of what we owe you contractually." Facebook said, "Yeah."

[00:02:41]And Google said, "We have to reclaim that."

[00:02:44]So an American company last month told someone likely paying tens of millions, could be hundreds of millions of dollars, that they have to reclaim that compute back from them. That's what they're This is Remember, it's above and beyond what they were contractually obligated to.

[00:03:00]But that they were going to have to reclaim that back from them because they didn't have enough compute.

[00:03:06]And there's a lot of people in X that actually think the reason 3.5 Pro is delayed is because the internal teams, Android, uh Google Cloud, and um DeepMind are all fighting over compute. They simply put don't have enough compute.

[00:03:24]And this is a company that is spending 190 billion dollars on compute this year.

[00:03:30]And now we have Kimmy K3, the team over there, that developed this wonderful AI at Moonshot AI, saying there isn't any compute available.

[00:03:41]Now we knew this, guys, because I told you earlier this year Huawei came out and said, okay?

[00:03:47]Huawei's been doing a terrific job.

[00:03:50]But they came out and flat-out stated that there's no way they'd be able to keep up with the demand in China.

[00:03:58]So, anyone telling you that the AI compute is in this oversupply narrative is lying to you.

[00:04:05]I don't know why they're lying to you, but they're lying to you.

[00:04:09]Huawei had their best year last year.

[00:04:11]Not their best I think it was their best year ever from some metrics.

[00:04:18]I'm going to say that overall, but they had a great year last year. They're probably on their probably on their way to having another best year this year.

[00:04:27]And they're not even able to keep up with the market over there. We're seeing the same type of thing from Nvidia.

[00:04:33]So, if if anyone out there is trying to tell you this idea that there's an oversupply in the market, yet the biggest players east China and west America.

[00:04:45]So, you might say, "Oh, I don't believe the American market." Well, then it's the China market. "Well, I don't believe the China market." Well, it's also the American market.

[00:04:52]And it's east and west the AI players do not have enough compute for demand.

[00:05:00]Then what I'm telling you is that they're not wrong, the people in the business. Who's wrong is these doomsday tellers, these naysayers out there pretending that no one's using AI.

[00:05:11]That's who's wrong.

[00:05:14]So, be be careful and be wary of these people.

[00:05:17]They're trying to sell you a lie. I have no idea why. Maybe they're invested.

[00:05:20]Maybe they're shorting the entire market or something.

[00:05:23]I don't know.

[00:05:25]But just be on your toes against that.

[00:05:26]Now, the next thing I want to talk about is that we have clear indication that uh oh For some reason, I cannot go back.

[00:05:36]There we go. We have clear indication from the US government and from Jim Cramer who's always wrong, but I'm just saying to People in the US government, people from uh OpenAI, from Anthropic, that is very likely, I would imagine within the next year, the Chinese AI frontier labs will be banned out of the US enterprise space, perhaps even the US consumer space.

[00:06:06]Jim Cramer wrote, "We must not let our companies use these Chinese models to save a few bucks. OpenAI and Anthropic are correct. This is vital national security. Please read Bing Wa China Hawk just released Cat 5. I respect the Chinese people greatly." Yeah, I'm sure you do when you write crap like this.

[00:06:24]"But these companies are run by the PLA, for heaven's sake. Okay." He's saying the People's Liberation Army Army is running is running Moonshot AI.

[00:06:36]That is beyond ridiculous. He doesn't have one shred of evidence to make such a claim like that. But this is Jim Cramer.

[00:06:44]Okay, this is a man who just goes up and tells fallacies every day for a living.

[00:06:49]Okay?

[00:06:51]But don't provide don't expect him to ever provide one single shred of evidence.

[00:06:56]Now, I find it funny because when you watch the Chinese military do their march last year, did you notice how in sync it was? Everything was just perfect. All the units performed perfect. Everybody walking in sync, every single step in sync, every single movement in sync, every single piece of equipment on display just perfectly clean, just just so neat and orderly.

[00:07:16]Then go online and look at the offices of Moonshot AI.

[00:07:21]They released a video of them working at their offices.

[00:07:24]And it's like a bunch of like college kids eating pizza. They're not eating pizza, but you know what I mean? Just eating pizza in the dormitory.

[00:07:31]It's so casual. It's so like you know, it's just what you expect from a bunch of genius young kids, you know?

[00:07:39]Just like like And still big kids.

[00:07:40]They're geniuses, course, but you know, it's so messy.

[00:07:46]And he's saying the People's Liberation Army is running that business. It's like, give me a break. You are a freaking fool.

[00:07:56]Okay? But, he's got a huge voice.

[00:08:01]You know, no one's listening to me, guys. Everyone's He's got millions of people that follow him. Millions of people that believe this crap.

[00:08:09]To save a few bucks? To save a few bucks? You're not saving a few bucks with Kimmy. You're saving a lot of bucks.

[00:08:16]Kimmy is good. Kimmy isn't just about value. It's not that it's actually that cheap. It's not the cheapest one out there. It's the fact that it's so close to our top models, and then you combine it with this price, and it's like, yeah, this is fantastic.

[00:08:28]Okay? But Jim Cramer isn't the only one, right? So, what we have here, I got a new tool. It's not working that great.

[00:08:37]Can't go left. I'm trying to swipe left.

[00:08:40]OpenAI Open AI and Anthropic executives sounded alarm about the rise of cheap AI, particularly powerful new models produced in China, suggesting they will lead to a dystopian AI future, and present unacceptable security risks without regulation.

[00:08:55]Some analysts who study AI industry say the two companies which are preparing for public listings in the next year just want to eliminate the competition.

[00:09:00]Yes, of course. Course they want to just eliminate the competition.

[00:09:06]They can't play the commoditization game. They absolutely cannot. They will fail.

[00:09:12]I've explained to you guys time and time again that if you're in a consumer market, you have to have wide distribution of apps. You have to have an incredible moat, because you're not going to make your money directly on AI.

[00:09:23]It's not The money isn't in subscriptions.

[00:09:26]It's going to be in what they do already with all of these consumer products, where they leverage and monetize your information.

[00:09:34]Okay?

[00:09:35]That's what they do in all of these.

[00:09:36]That's how it's always going to work.

[00:09:38]But in the enterprise space where there are constituencies, people are going to start demanding discounts. And if they do, then all of a sudden your fat margins get hit. Your 90% margins become 80% margins, your 80% margins become 70% margins, your 70% margins become 60% margins, and so on and so forth. And that is not good.

[00:09:59]Okay?

[00:10:01]But this is disappointing. I have to bring this up.

[00:10:04]But it's also something I predicted.

[00:10:07]Remember when I said China is not going to subsidize the whole world? I told you that China did what I consider to be if a if AI becomes lives up to its potential, I think it will go down in his historical event. President Xi will get the respect that he deserves.

[00:10:22]Okay?

[00:10:24]For promoting open-source solutions and bringing the global south into that world order and into that standard.

[00:10:32]But simply put, they can't offer everything for free.

[00:10:36]They can't subsidize the world.

[00:10:39]And China's going to look at this and they're going to say, "Hey, why would we allow our our best models?

[00:10:44]I I always think remember because they're in the commoditization play, they can't they're going to be pushing out open-source for a long time.

[00:10:53]That's the good thing.

[00:10:55]But I do believe that their best models and now from what I understand, this is just rumored out of Beijing, they're even worried about their best chip architectures.

[00:11:04]When you look at what Huawei did with the recent logic folding gate, it's like, "Hey, we need to protect this stuff."

[00:11:14]And so now they're like, "If the US is going to do this stuff, maybe we will have a tit-for-tat export controls against the US on AI technology." And I find this very unfortunate because what it means is now then you're going to see people in the global south that are going to resort to smuggling this stuff in America because there's going to be, you know, opportunities for it and it's going to hurt our prices here in America.

[00:11:38]Cuz again, Kimmy K3 Deep Seek did some great things, but Deep Seek was not close enough to the top AIs. Kimmy is.

[00:11:45]Kimmy is a true alternative.

[00:11:49]And if it was allowed to stay that absolutely Kimmy Kimmy be would be used by American companies. They're not going to run it over in China. They're not going to go to Kimmy's Kimmy servers, but they're going to run it on our servers here.

[00:12:04]But that's going to hurt. That's going to crush open open AI and Anthropic.

[00:12:12]So just like I said, Kimmy, you know, or sorry, open AI and Anthropic, they don't want that, which is why they're saying what they're saying, right? That's That's where we go back to this.

[00:12:24]But I find it unfortunate that we have to get to that cuz as you know, I am actually a big proponent of open source and I believe that open source systems lead to the most innovation. And in my head, I'm just like, why can't we just work together? Why does it have to be like this?

[00:12:38]We can still compete. I'm not saying you don't have proprietary blobs. I'm not saying you don't have proprietary aspects to your system. China can have their proprietary aspects.

[00:12:46]We can have ours.

[00:12:48]But if we open source, you know, control switch switch through standards, switch through source, switch through features and stuff like that, improving them back and forth, just imagine where we could be already.

[00:13:01]But it's not going to be that. And I'm not blaming China. I just find it unfortunate that the US has pushed China that far.

[00:13:07]Okay?

[00:13:09]But I told you guys it was going to happen.

[00:13:12]Okay, they're not here to support the entire world with this stuff. They got to make a profit also.

[00:13:18]And they're not going to say, "Okay, you guys are going to literally block us off from your market," which I told you was going to happen. And China knows it's going to happen ultimately.

[00:13:25]But now we're going to have to see about our own markets. We're going to have to protect our markets from you so that you're not exploiting our stuff.

[00:13:32]Remember I said right now Kimmy K3, if American companies use it, they're not going to None of that money is going back to China. It's all going to go to Google, Amazon, Microsoft cuz they're going to run it on their servers here.

[00:13:46]So it's a very interesting landscape.

[00:13:49]Let me know what you think about all this in the comments down below and all of you have a great day. Also, let me know what you think about this new app I built with the help of Kimmy K3 for the hardware and Gemini 3.6 for the grunt work.

[00:14:01]A switch from how I usually do stuff.

[00:14:04]Lately I've been using Fable for the hardware and Deep Seek for the grunt work and now I switched it.

[00:14:10]Okay, so this was built with the Chinese AI uh doing all of the tough problems I ran into, Kimmy.

[00:14:17]And then I used uh Gemini 3.6 Flash this morning to finish off all the easy tasks that we laid out for. Okay. Anyways, all of you out there, uh have Oops, wait.

[00:14:27]I got to stop it on my remote down here.

[00:14:28]I got a remote on my watch.

[00:14:30]So I'm one-handed.

[00:14:33]Have a great day.