--- title: "UBS: Kimi K3 Performance Nears Leading Closed-Source Frontier Models; CN AI Models Envisioned to Gradually Gain Global Mkt Shrs" type: "News" locale: "en" url: "https://longbridge.com/en/news/293278495.md" description: "UBS highlights that China's open-source AI models, such as Moonshot AI's Kimi K3 and Alibaba's Qwen 3.8-Max, are approaching the performance of leading closed-source frontier models. The broker believes cost efficiency and architectural innovations will help Chinese AI firms gain global market share. UBS maintains a positive outlook on Chinese cloud vendors like Alibaba, Tencent, Baidu, and Kingsoft Cloud due to AI demand, while viewing recent stock corrections in listed model companies like Z.AI as largely priced-in." datetime: "2026-07-21T02:50:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293278495.md) - [en](https://longbridge.com/en/news/293278495.md) - [zh-HK](https://longbridge.com/zh-HK/news/293278495.md) --- # UBS: Kimi K3 Performance Nears Leading Closed-Source Frontier Models; CN AI Models Envisioned to Gradually Gain Global Mkt Shrs Following the success of Z.AI (02513.HK) +92.000 (+10.331%) Short selling $442.75M; Ratio 3.992% 's GLM-5.2, UBS was encouraged by the rapid progress of Chinese models. Moonshot AI's Kimi K3 model also attracted strong global attention. As the world's largest open-source LLM, its performance has approached that of leading closed-source frontier models. BABA-W (09988.HK) +1.100 (+0.942%) Short selling $3.13B; Ratio 21.284% announced the preview version of Qwen 3.8-Max, which is reportedly targeting performance close to Fable 5, whereas the potential launch of DeepSeek V4 GA (general availability version) could further strengthen the cost-efficiency advantages of Chinese models. The broker believed China's open-source ecosystem will accelerate technology diffusion and generate R&D synergies, helping more Chinese AI laboratories narrow the capability gap with global peers. Although Chinese AI developers have smaller funding scales than overseas peers, the capability breakthroughs and architectural innovations of Kimi K3 are expected to ease investor concerns over training computing power constraints or model distillation. UBS reiterated that cost efficiency remains the core advantage of Chinese AI models and believed they are expected to gradually gain global market share amid the industry's shift toward token optimization. The broker upheld a positive view on Chinese cloud vendors including BABA-W (09988.HK) +1.100 (+0.942%) Short selling $3.13B; Ratio 21.284% , TENCENT (00700.HK) \-0.400 (-0.084%) Short selling $2.22B; Ratio 15.127% , BIDU-SW (09888.HK) \-3.500 (-3.205%) Short selling $422.67M; Ratio 36.254% , and KINGSOFT CLOUD (03896.HK) \-0.050 (-0.951%) Short selling $25.32M; Ratio 5.297% , underpinned by industry tailwinds driven by AI training and inference demand. UBS was particularly bullish on BABA-W in light of the progress of Qwen 3.8 and its strategic exposure to Moonshot AI. Regarding listed model companies, UBS considered recent share price weakness reflects concerns over intensified competition following the release of Kimi K3. It believed the more than 40% share price correction of Z.AI since July 17 has largely priced in short-term concerns, while it remained positive on the company's track record in R&D and model launches. UBS also continued to monitor progress by MINIMAX-W (00100.HK) +0.500 (+0.259%) Short selling $67.49M; Ratio 6.111% in launching new models. 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