Moonshot AI, a Beijing-based startup known for its large-scale Kimi K3 model, is engaging Microsoft, Amazon, and Google cloud platforms in early-stage talks about revenue-sharing agreements that could enable these US tech giants to offer the Chinese AI model on their infrastructure.
- Moonshot negotiates ~30% revenue share with Microsoft, AWS, Google Cloud
- Kimi K3 model competes favorably with top Western AI systems
- Talks challenged by data access, auditing, and political scrutiny
What happened
Moonshot AI is in confidential discussions with leading US cloud providers—Microsoft Azure, Amazon Web Services, and Google Cloud—aiming to establish revenue-sharing agreements for hosting and distributing its flagship Kimi K3 AI model. These talks would represent a pioneering commercial partnership involving a major Chinese AI firm and US cloud giants. Moonshot is proposed to receive up to 30% of usage-based revenues generated from K3-related services on these platforms, aligning with previously outlined terms for its open-weight model customers.
While at an early stage, these negotiations underscore Moonshot’s ambition to gain broader enterprise adoption outside China by leveraging the vast infrastructure and customer bases of these cloud providers. The startup has also reached similar deals with smaller cloud vendors and a Chinese IT service company, increasingly positioning itself as a significant player in the global AI model market.
Why it matters
The potential partnerships reveal how Moonshot’s Kimi K3 model is gaining traction internationally, particularly in the US, despite ongoing national security concerns and export controls restricting AI hardware sales to China. K3’s competitive pricing and strong performance benchmarks—comparable to OpenAI’s GPT-5.5 and Anthropic’s Claude—make it an attractive option for cloud providers looking to diversify their AI offerings amid intense demand.
However, US officials have voiced serious warnings about Moonshot’s practices, including accusations of IP theft and illicit chip acquisitions, with suggestions to blacklist the company remaining under consideration. These geopolitical factors add complexity to the commercial talks and highlight tensions between fostering innovation and safeguarding technology security.
What to watch next
Key issues still unresolved in Moonshot’s negotiations include the specifics of revenue division, data governance, and mechanisms for auditing token usage to ensure transparent billing under usage-based pricing models. These technical and contractual details will be critical to finalizing any agreements and ensuring compliance with regulatory scrutiny.
Market observers should monitor if Moonshot secures formal deals with Microsoft, Amazon, and Google, as this would mark a major milestone for China-US AI collaboration. Additionally, given Moonshot’s anticipated IPO and substantial backing from Chinese technology giants such as Alibaba, the startup’s expansion trajectory and its impact on global AI competition will be closely watched.