Moonshot Seeks 30% Cut in Revenue-Sharing Talks with Microsoft, Amazon, Google

Chinese AI startup Moonshot AI is reportedly in talks with Microsoft (MSFT), Amazon (AMZN) and Alphabet's Google (GOOGL) over revenue-sharing agreements for its Kimi K3 model. The proposed deals would allow the three US cloud giants to host the model on their platforms, with Moonshot seeking as much as a 30% share of revenue generated from K3-related services.

The talks are still in the early stages, with unresolved issues including how revenue would be split, data access, and token-usage auditing. The discussions come amid scrutiny from US officials over allegations involving AI model distillation and access to Nvidia chips, which Moonshot has denied.

Kimi K3 is an open-weight model that requires significant computing capacity to operate at scale, creating an opportunity for Microsoft, Amazon, and Google to provide the necessary infrastructure. The proposed deals also point to a broader shift in how open AI models could be monetized, with Moonsoft already reaching smaller revenue-sharing agreements with other companies.

The talks have sparked interest among investors, with shares of the hyperscalers trading flat in pre-market trade. However, US officials remain cautious, with Treasury Secretary Scott Bessent mentioning the possibility of adding Moonshot to a trade blacklist.