#policy

Explores how Chinese open-weight models like Moonshot AI's Kimi K3 have closed the gap with U.S. frontier models at a fraction of the cost, and the resulting rift in Silicon Valley — Nvidia, Meta, Microsoft, OpenAI, and Google backing an open letter defending open-weight AI, with Anthropic the lone major holdout.

An investigation by Zilan Qian (Oxford China Policy Lab) into China's "transfer station" (中转站) grey market of API proxies that let developers access Claude at roughly 10% of the official price — and how each new access control layer (geoblocking, phone verification, biometric KYC) generates a corresponding evasion infrastructure, from SMS farms to biometric harvesting operations abroad.

The most striking insight is the 'one fish, three meals' (一鱼三吃) pricing model: cheap tokens are largely customer acquisition, with the real margin coming from selling users' full prompt/response logs as training data — making users simultaneously paying customers and unpaid data producers.

Simon Willison's commentary on an Axios piece — the best behind-the-scenes account of the US government export control story that took Fable and Mythos offline.