China's Open AI Models Are Challenging Silicon Valley's Playbook

Z.ai, Moonshot AI, and Alibaba released open-weight models (GLM 5.2, Kimi K3, Qwen 3.8) that benchmark near Western frontier models and target agentic coding. In response, OSTP director Michael Kratsios accused Moonshot of distilling Anthropic's Fable for K3, and Commerce Secretary Scott Bessent floated sanctions on Chinese AI companies.