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Trump’s AI advisor says Kimi K3 shows “how you lose the AI race.” Khosla blames immigration. Marcus wants a congressional investigation.

Posted on July 17, 2026 By 164news66 No Comments on Trump’s AI advisor says Kimi K3 shows “how you lose the AI race.” Khosla blames immigration. Marcus wants a congressional investigation.

Trump’s AI Advisor Criticizes Kimi K3’s Success

Kimi K3, a model developed by Moonshot AI, has topped coding leaderboards within 24 hours of its launch, raising concerns among key figures in the AI community.

Reactions from Washington and Wall Street

  • David Sacks, Trump’s former AI advisor and current co-chair of the President’s Council of Advisors on Science and Technology, expressed worry, stating: "This is how you lose the AI race." He attributed this to US regulatory actions, such as blocking data centers and imposing federal approval for advanced models.

  • Vinod Khosla agreed, highlighting immigration policies as another factor scaring away talent.

  • Gary Marcus, a longstanding AI critic, called for a congressional investigation, questioning the need for a trillion-dollar cloud capex if Chinese labs can achieve comparable results at lower costs.

A New "Inflection Point" in AI

Gavin Baker, CIO at Atreides Management, described Kimi K3 as an "inflection point", predicting it will harm closed AI startups like OpenAI and Anthropic while benefiting others in the field.

The Rise of Open Models

Moonshot AI’s open-weight model, Kimi K3, demonstrated impressive coding performance, placing ahead of rivals like Anthropic’s Claude Fable 5 and OpenAI’s GPT-5.6 Sol. This success accelerates a trend where the model layer becomes more commoditized, while infrastructure and application layers capture higher value.

The Story Behind the Model

Ana Maria Constantin, with expertise in digital marketing, product management, and branding, offers insights into the development and potential implications of Kimi K3.

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