Chinese artificial intelligence startup Moonshot AI is negotiating revenue-sharing agreements with Microsoft, Amazon, and Google to host its Kimi K3 model on their respective cloud platforms, according to reports from Reuters. If finalized, the deal would mark the first time a major Chinese AI model is hosted directly by the primary American cloud providers.
Revenue-Sharing Terms and Cloud Hosting Discussions
Moonshot AI has requested up to 30 percent of the revenue generated by Kimi K3 services across Microsoft Azure, Amazon Web Services (AWS), and Google Cloud, according to three individuals familiar with the discussions. The talks remain in their early stages, and neither the exact financial splits nor the final contract terms have been locked in by the companies involved. Unlike a standard software listing, the ongoing negotiations require all parties to establish operational infrastructure for hosting, handle token-based usage tracking, and configure complex revenue distribution models for enterprise and consumer users.
Data Access Rights and Regulatory Obstacles
Beyond revenue splits, the negotiations hinge on strict technical and legal boundaries concerning data access rights and usage monitoring. Cloud operators and developers must agree on how input and output tokens are measured to calculate costs, while also determining what data limits apply to the cloud providers. Regulatory scrutiny adds substantial friction to the discussions. U.S. Treasury Secretary Scott Bessent recently warned Moonshot AI regarding potential trade restrictions, while American authorities have separately alleged that the startup improperly accessed intellectual property from Anthropic’s Fable model. Moonshot AI has denied those allegations. Representatives for Microsoft, Google, and AWS declined requests for comment from Reuters regarding the ongoing negotiations.
Frequently Asked Questions
- Which cloud providers are involved in the talks with Moonshot AI? Moonshot AI is currently discussing Kimi K3 hosting and revenue terms with Microsoft Azure, Amazon Web Services (AWS), and Google Cloud.
- Has a Chinese AI model ever been hosted on major U.S. cloud platforms before? No. If the current negotiations successfully conclude, it will represent the first time a major U.S. cloud provider hosts a Chinese artificial intelligence model under a formal revenue-sharing agreement.
- What are the primary hurdles in the current negotiations? The main sticking points include Moonshot AI’s request for up to 30 percent of revenue, technical tracking of token usage, data access boundaries, and mounting regulatory pressure from U.S. trade officials.
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