
Justin Johnson
84 posts

Justin Johnson
@builderleader
F500 AI exec who still ships. Author of Builder-Leader. The builds, the numbers, what broke. The Blog → https://t.co/RnVFhevL0J









Kimi K3 is forcing Silicon Valley to acknowledge that Chinese open models are no longer six to nine months behind the frontier, the gap may now be just two to three months. Via Bloomberg.




a week ago @SemiAnalysis_ wrote that Chinese labs are "simply too compute poor to truly reach the frontier." today one of those "too compute poor" labs, a 300-person startup actually, shipped a model that compares to opus 4.8 the entire western consensus – export controls, the $650B hyperscaler capex race, the "compute moat" investment thesis – is built on one assumption: flops gate capability. if that were true, chip controls would keep chinese labs permanently behind the frontier. but after reading through moonshot's stack i no longer think it is. training is efficiency-compressible: MoE routing, INT4-native quantization, better data curation, infra built around scarcity (their Mooncake stack exists because they don't have gpus!). a small lab with taste can compress the compute needed to make a frontier model, even if it can't afford to serve one the frontier is no longer something money can buy


At its peak, Sun Microsystems was valued at 205B (394B if inflation adjusted). Sold software in enterprise servers. Got disrupted by Linux, x86, and commodity hardware. Ended up selling to Oracle for 7.4B, losing 96% of its value. Open source models running on local hardware can have a similar impact given what’s going on.

@shadcn The surprise is not that models got better. It’s how quickly “frontier” became “commodity.



