THIS WEEK IN AI: Kimi K3, OpenAI's Alexa, Grok Stealing Code, Thinking Machines
July 17, 2026
AI Summary
5 min readTHIS WEEK IN AI: Kimi K3, OpenAI's Alexa, Grok Stealing Code, Thinking Machines
The biggest story this week is that the gap between Chinese open-source models and American frontier labs may have effectively closed. MoonShot Labs released Kimi K3, a 2.8 trillion parameter model that early testers are calling "Fable-level" on visual tasks and consistently better than GPT 5.6 on coding — at a fraction of the cost. Meanwhile, Thinking Machines finally revealed what they've been building with their record $2 billion seed round, OpenAI's hardware device got its first concrete leak, and Grok got caught training on user code without permission.
Kimi K3: A New Point on the Cost-Intelligence Curve
MoonShot Labs' Kimi K3 is the most significant open-source release since DeepSeek R1. The model is approximately 2.8 trillion parameters — roughly double Grok 4.5 — and early benchmarks show it matching or exceeding GPT 5.6 on coding while approaching Fable 5 on visual reasoning and simulation tasks. The promotional video from MoonShot Labs shows the model one-shotting a full video recreation of their own launch trailer from a single prompt in 25 minutes, at a cost of under $10.
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What you'll learn
- 1 (00:00) **Kimi K3: A New Open-Source King** - MoonShot Labs releases Kimi K3, a ~2.8 trillion parameter model that closes the gap with frontier labs, rivaling Fable 5 in several benchmarks and surpassing GPT-5.6 on coding.
- 2 (08:11) **Thinking Machines & Inkling: The Custom Companion** - Mira Murati's company releases Inkling, an open-weight, multimodal model focused on being a customizable, fine-tunable companion rather than a frontier LLM.
- 3 (15:13) **OpenAI's Secret Hardware Device: A Screen-Free Speaker** - Leaks from Mark Gurman reveal OpenAI's first device is a screenless, portable smart speaker with a camera and environmental sensors, targeting an early 2027 release.
- 4 (21:13) **Grok's Privacy Scandal & Open-Source Pivot** - xAI's Grok Build was caught uploading user code to private servers for training, leading to a major backlash and a subsequent open-sourcing of the entire product.
- 5 (23:36) **Elon Musk Acquires APR Energy for Power** - Elon Musk personally acquires APR Energy, a mobile gas turbine company, for ~$1 billion to solve the power bottleneck for xAI's data centers.
- 6 (26:52) **Screen-Aware Dictation: The Next Step in Voice AI** - Farza's Whisperflow introduces a new feature that listens to your intent, researches topics you're unsure about, and formulates responses, moving beyond simple voice-to-text.
- 7 (29:30) **DeepSeek Prepares for IPO** - Hot on the heels of a massive $15 billion funding round, DeepSeek is rumored to be preparing an IPO, with founder Liang Wenfeng owning ~94% of the company.
+ Full timestamped outline available in the app
Show Notes
Big week this week. Moonshot Labs’ dropped Kimi K3, Thinking Machines Labs’ Inkling, and reporting on OpenAI’s upcoming screen-free hardware device.
We also discuss Grok Build, XAI, a new dictation tool, Elon Musk’s energy company purchase, and reports that DeepSeek is preparing an IPO.
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TIMESTAMPS
0:00 Kimi K3 Changes Everything
8:11 Thinking Machines Finds Its Niche
15:06 OpenAI’s Mystery Speaker Emerges
21:15 Elon’s AI Moves and Missteps
26:52 Dictation Gets Smarter
29:44 DeepSeek Eyes an IPO
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Josh works with Anthropic as a contractor. All views expressed are his own and do not represent Anthropic, its leadership, or its affiliates. Nothing in this episode is investment advice.
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