In a landmark move that could reshape how American cloud providers handle Chinese artificial intelligence models, Beijing-based Moonshot AI is in early-stage negotiations with Microsoft, Amazon, and Google to host its advanced Kimi K3 language model on their platforms—but with an unprecedented condition: a 30% cut of all revenue generated from the service.
What Happened
According to Reuters reporting, Moonshot AI has approached the three largest US cloud infrastructure companies with an audacious proposition. Rather than accepting standard hosting fees, the Chinese AI firm is seeking a substantial revenue-sharing arrangement that would give it one-third of all earnings derived from Kimi K3 deployments on these platforms. This represents the first known instance of such negotiations between a major Chinese AI company and America’s dominant cloud providers, marking a significant shift in how cross-border AI commercialization might operate.
The discussions remain in preliminary stages, with no confirmed agreements yet in place. However, the very fact that these conversations are occurring signals growing interest from US cloud providers in hosting cutting-edge Chinese AI models, despite ongoing geopolitical tensions and regulatory scrutiny surrounding AI technology transfer.
Key Points
The proposed arrangement would be groundbreaking for several reasons. Traditionally, cloud providers charge fixed hosting and computing fees. A 30% revenue split fundamentally alters that model, treating Moonshot AI as a true business partner rather than a standard customer. This approach reflects Kimi K3’s competitive capabilities—the model has reportedly performed well in industry benchmarks and gained traction among Chinese users.
The timing is significant. As generative AI competition intensifies globally, cloud providers face pressure to offer diverse, high-performing models. Kimi K3 could provide Microsoft, Amazon, and Google with access to advanced Chinese AI technology, potentially expanding their market reach in Asia while offering American users alternative model options.
Notably, US regulatory bodies will likely scrutinize any deal closely. The Biden administration has maintained restrictions on advanced AI technology exports to China, creating potential complications for hosting Chinese models in American infrastructure.
What This Means
If negotiations succeed, this deal could establish a precedent for how Chinese and American tech companies collaborate on AI infrastructure despite geopolitical barriers. For cloud providers, hosting Kimi K3 offers revenue diversification and competitive differentiation. For Moonshot AI, US cloud access provides crucial infrastructure scaling and market expansion.
However, regulatory approval remains uncertain. Policymakers must balance commercial interests against national security concerns. The outcome will signal whether Washington intends to facilitate or restrict international AI partnerships moving forward.
