Moonshot AI Pursues 30% Revenue Sharing with Microsoft, Amazon, Google for Kimi K3 Model Hosting

Reviewed byNidhi Govil

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Chinese AI startup Moonshot AI is negotiating with Microsoft, Amazon, and Google to host its Kimi K3 model on their cloud platforms, seeking up to 30% of generated revenue. The early-stage talks could mark the first major revenue-sharing agreement between a Chinese AI firm and US cloud giants, despite ongoing geopolitical tensions and Treasury Secretary concerns about potential blacklisting.

Moonshot AI Enters Early-Stage Negotiations with US Cloud Giants

Moonshot AI is pursuing revenue sharing agreements with Microsoft Azure, Amazon Web Services, and Google Cloud to host its blockbuster Kimi K3 model on their platforms

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. The Chinese AI startup is seeking up to 30% of revenue generated from Kimi K3-related services, according to three sources familiar with the discussions

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. If finalized, this would represent the first major revenue-sharing pact between a Chinese AI firm and US cloud giants

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Source: The Next Web

Source: The Next Web

The early-stage negotiations remain uncertain, with no guarantee they will result in agreements

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. Microsoft, Google, and Amazon Web Services have all declined to comment on the discussions, while Moonshot AI has not responded to requests for comment

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Key Unresolved Issues in AI Model Hosting Negotiations

Several critical issues remain unresolved in the talks between the Chinese AI startup and US cloud giants. Token usage auditing stands as a central concern, as measuring tokens—units of text processed by AI models—is essential for calculating revenue under usage-based billing

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. The auditing question carries particular weight since the party counting tokens would be the same party paying the revenue share

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Data access provisions represent another delicate negotiation point. Enterprise customers will demand clarity about what a Chinese company hosting a model on cloud platforms like Azure or AWS can see regarding prompts and outputs flowing through the system

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. The final revenue split structure also remains under discussion

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Kimi K3's Performance and the Open-Weight Model Challenge

Source: Benzinga

Source: Benzinga

The 2.8 trillion parameter Kimi K3 has demonstrated strong performance in third-party evaluations

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. Arena.ai ranked it first in benchmarks assessing web interface-building capabilities, while Artificial Analysis reports it delivers performance comparable to OpenAI's GPT-5.5 and Anthropic's Claude Opus 4.8, particularly on tests measuring complex, multi-step tasks

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Though Kimi K3 is an open-weight model that can be downloaded and modified, few customers are likely to run a system with 2.8 trillion parameters on their own infrastructure due to massive computing costs

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. This reality makes cloud platforms the main route to enterprise adoption for large AI model providers like Moonshot AI

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Geopolitical Tensions Complicate Commercialization Path

The discussions unfold against a backdrop of intensifying US-China technological tensions. US Treasury Secretary Scott Bessent stated last month he might add Moonshot AI to a trade blacklist

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. US officials have accused the Beijing-based company of stealing from Anthropic's most sophisticated model, Fable, to help create Kimi K3 and illegally acquiring Nvidia chips

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Moonshot AI has rejected suggestions that Kimi K3's performance was achieved via distillation, telling China's National Business Daily that its performance gains came from original changes to underlying architecture

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. Whether these talks conclude may depend less on commercial terms than on whether Washington permits them at all

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Moonshot AI's Valuation Trajectory and Hong Kong IPO Plans

Source: Jerusalem Post

Source: Jerusalem Post

Founded in 2023 by Carnegie Mellon-trained AI researcher Yang Zhilin, Moonshot AI is backed by several Chinese tech giants including Alibaba

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. The startup raised more than $2 billion in May at a $20 billion valuation and is preparing for a potential Hong Kong IPO

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Last month, Moonshot AI reportedly closed a $3.5 billion funding round at a $35 billion valuation, with China's National Artificial Intelligence Industry Investment Fund among lead investors

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. The company may be aiming to raise additional funds at a $50 billion pre-money valuation as it works toward a rumored public listing in coming months

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. This valuation trajectory—jumping from roughly $20 billion to a $30 billion target in about six months—makes international distribution through the world's largest cloud platforms commercially urgent

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Moonshot AI has already signed similar revenue sharing agreements with some smaller cloud platforms, though details were not disclosed

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. In July, Chinese IT services provider Chinasoft International confirmed it had a revenue-sharing agreement with Moonshot AI, though it did not disclose the revenue split

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