The AI industry is not quite experiencing a DeepSeek 2.0 moment, but it feels very close. The leading Chinese AI labs have been on a roll lately, releasing a series of almost cutting-edge open-source models. Z.ai released GLM 5.2 in June, Moonshot AI released Kimi K3 last week, and Alibaba released Qwen 3.8 this Monday.

Silicon Valley and Washington started talking about the models immediately, especially K3, which is widely seen as the best of the bunch. David Sacks, a venture capitalist and AI adviser to President Donald Trump, called the performance of Moonshot’s model “concerning.” Earlier this week, Commerce Secretary Scott Bessent suggested the US might impose sanctions on Chinese AI companies.

On Wednesday, Michael Kratsios, director of the White House Office of Science and Technology Policy, alleged that the Trump administration has “information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model,” which he said amounted to “stealing proprietary US technology and undermining American research” and was “unacceptable.” (Moonshot AI did not immediately respond to a request for comment.)

The new Chinese models have a few things in common: third-party benchmarks show that they perform nearly as well as the best Western models; they are optimized for agentic coding tasks (the hottest thing in AI this year); and they are or will soon be released with open weights, making them accessible and transparent.

But perhaps the biggest parallel between the current moment and January 2025—when the world was shocked by DeepSeek’s R1 model—is that it reaffirms how American and Chinese AI labs are taking diverging paths when it comes to being open or closed. When it first burst onto the scene, DeepSeek challenged the premise that only closed-source models built with billions of dollars of investment in compute infrastructure and training could achieve frontier performance.