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China's New AI Model Halts New Subscriptions As Demand Swamps Capacity

1 month 1 week ago
Moonshot AI has temporarily paused new subscriptions for its Kimi K3 model after demand surged beyond the company's current capacity within days of the launch. The open-source Chinese AI model, described as one of the largest of its kind at 2.8 trillion parameters, has rattled U.S. rivals by beating Anthropic's Fable 5 and OpenAI's GPT-5.6 Sol in front-end coding tests. The Associated Press reports: "Kimi K3 has received far more love than we expected," Moonshot AI, which is Beijing-based, wrote in a X post late on Sunday. "Over the past 48 hours, demand has pushed close to the limits of our current capacity." Moonshot said that it's prioritizing existing subscribers and would be temporarily pausing new ones. "We're adding capacity as fast as we can and will reopen new subscription spots in batches," it added. The AI startup also posted a similar message on Chinese social media. "New model releases generally trigger massive interest, which can strain existing compute infrastructure," said Lian Jye Su, a chief analyst at the technology research and advisory group Omdia. "This does show Moonshot AI does not have sufficient compute chips to serve the current surge in demand." Su said that the key reason was more likely due to Moonshot not fully anticipating the surge in K3's popularity. K3 is "very demanding" in terms of compute requirements, he said, making compute allocation challenging and expensive.

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Head of US Safety Agency Resigns

1 month 1 week ago
Chris Fall has resigned as director of the U.S. Center for AI Standards and Innovation just three months after being appointed to lead the Commerce Department's federal AI testing institute. Arvind Raman, who oversees the Commerce office responsible for the institute, will serve temporarily in the role. "The Commerce Department did not provide a reason for Fall's departure," reports Reuters. From the report: Fall's exit marks the latest change in direction for Trump's approach to AI. The president upon returning to office in 2025 said the federal government should take a hands-off approach to the tech sector. He has since taken a more active role in monitoring the technology, though his public statements and policies appear to change week by week. The institute is responsible for working with leading AI labs such as Anthropic, Google's DeepMind and OpenAI to test their unreleased models for vulnerabilities. The group is staffed by scientists and engineers, who are focused on calculating the "demonstrable risks" posed by advanced AI models, according to the institute's website. They want to limit opportunities for U.S. adversaries to use AI to develop chemical or biological weapons, or corrupt the data used to train American AI models.

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AliExpress Hit With Record $625 Million Fine After Failing To Make EU-Ordered Fixes

1 month 1 week ago
The European Commission has fined AliExpress more than $625 million, the largest penalty yet under the Digital Services Act, after finding that the marketplace failed to "diligently assess and mitigate risks relating to the sale of illegal, unsafe, or counterfeit products on its e-commerce platform." EU officials said flagged products repeatedly reappeared, sellers could evade safeguards, and AliExpress's recommendation and ad systems helped amplify dangerous goods. Ars Technica reports: For shady sellers, the risks of detection appeared low. The e-commerce site's mandatory brand authorization system was also ineffective and understaffed, the EC found, and AliExpress did not penalize traders for selling illegal products as its policy claims it would. Making things worse, AliExpress "inadequately assessed how its recommender and advertising systems exacerbate the spread of illegal products," the EC said. So rather than remove illegal products, AliExpress was recommending them to consumers and helping to maximize exposure. Talking to the press, the European Union's tech chief, Henna Virkkunen, noted that one in five Europeans shop monthly at retail sites like AliExpress, Temu, and Shein. AliExpress also relied on a single quantitative metric to gauge how effectively its systems were working to weed out illegal products. And that metric did not properly measure the extent of the harm. EC testing found that "a high volume of illegal products" -- including unsafe toys and dangerous cosmetics -- "continued to circulate despite AliExpress' moderation efforts." In June 2025, AliExpress was ordered to bring its platform into compliance with the DSA but failed to make the necessary changes, the EC said. The fine was calculated to be proportionate to the nature of the violations, which the EC considered "particularly serious infringements," and to penalize AliExpress's delayed interventions to mitigate flagged risks. [...] AliExpress told Ars it was "surprised" by the "disproportionate" fine. AliExpress said it plans to appeal the decision, claiming the EC ignored its "sound risk management framework and the significant, proactive enhancements we have made." The massive online retailer noted that its EU market is substantially smaller than its China market and said that it invests "substantial resources in risk assessment and mitigation, product safety and consumer protection" and "has been and continues to be committed to meeting our obligations to consumers."

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