Moonshot AI Seeks 30% Revenue Share from Microsoft, Amazon, Google Cloud Deals for Kimi K3 Model

Chinese AI startup Moonshot AI is in early talks with Microsoft, Amazon, and Alphabet's Google for revenue-sharing agreements that would allow the three US cloud providers to host Moonshot AI's Kimi K3 model on Azure, AWS, and Google Cloud. Moonshot AI is asking for up to 30 percent of revenue from K3-related services, which would be the first time a Chinese AI company has landed its model on major US cloud platforms while taking a cut of the revenue. For broader context, explore our AI Tools by Platform. For broader context, explore our AI News.

Pioneering a New Hosting Model

If these negotiations conclude successfully, it would represent an unprecedented arrangement. For the first time, a Chinese AI developer would not only have its flagship model, Kimi K3, hosted on prominent US cloud platforms like Azure, AWS, and Google Cloud, but would also directly share in the revenue generated from its usage. This model moves beyond traditional infrastructure-as-a-service, suggesting a deeper partnership where the AI model itself becomes a direct revenue driver for its creator on third-party platforms.

Complexities and Unresolved Questions

Despite the potential, these discussions are still in their preliminary stages, and a definitive deal is far from guaranteed. Several critical aspects remain open for negotiation, including the precise revenue split, terms of data access, and methods for accurately tracking token usage. These details are crucial for establishing a fair and transparent partnership, especially given the sensitive nature of AI model deployment and data handling across international borders.

Geopolitical Tensions and Accusations

The backdrop to these commercial negotiations includes heightened geopolitical tensions. US Treasury Secretary Scott Bessent recently issued a threat of a trade ban against Moonshot AI. Furthermore, US authorities have accused Moonshot AI of intellectual property theft, specifically alleging that the company stole Anthropic's "Fable" model. Moonshot AI has publicly denied these accusations. These external pressures add a layer of complexity to any potential agreements with US tech giants.

Why This Matters Now

This development is significant for several reasons. Firstly, it highlights the increasing global integration of AI infrastructure, even amidst geopolitical friction. Should a deal materialize, it would demonstrate a pathway for advanced Chinese AI models to access broader international markets through established US cloud ecosystems. Secondly, the proposed revenue-sharing model could set a new precedent for how AI model developers monetize their innovations when hosted on third-party platforms, potentially influencing future partnerships across the industry. Finally, the ongoing discussions underscore the intricate balance between technological collaboration and national security concerns in the rapidly evolving AI landscape.

What to Watch Next

The coming months will be critical in determining whether Moonshot AI, Microsoft, Amazon, and Google can navigate the complexities of these negotiations. Key areas to observe include any official statements from the involved parties, the resolution of technical details regarding revenue and data, and the broader geopolitical climate surrounding US-China tech relations. The outcome could significantly impact the global deployment and monetization strategies for large language models.

Sources

• Chinese Moonshot AI negotiates hosting deals with Microsoft, Amazon, and Google