Kimi K3 Reactions, The Odyssey Hits $264M in Debut, Netflix Embraces AI | Diet TBPN

**John Coogan** (0:01)
It's Monday, and there's a lot of news, the big stuff. Kimi K3 dropped, but first, we should recap the weekend. How was your weekend?

**Jordi Hays** (0:09)
The elephant in the room, that I'm wearing a suit.

**John Coogan** (0:11)
Yes, the elephant in the room. Did somebody say that? The elephant in the room. Jordi's suited up, he's feeling good, he's refreshed.

**Jordi Hays** (0:17)
Yeah, refreshed. I, yeah, was in the house for the weekend. You got dragged to the old country. Yes, yes, exactly.
Really fun time, glad to be back. Very, very refreshed.

**John Coogan** (0:31)
Very fun. I was at a Caruso property this weekend and I got to say, being there, being at the Miramar, Rosewood, I can never vote for him for public office ever again.

**Jordi Hays** (0:43)
Why? Because you want him to develop more properties like that?

**John Coogan** (0:45)
I want him laser focused on resorts and malls.

**Jordi Hays** (0:48)
It doesn't really hold up because the whole point was that there was some possibility that he could make greater Los Angeles something like his incredible properties.

**John Coogan** (0:58)
He had a Rosewood in every city in America and maybe all over the world.

**Jordi Hays** (1:02)
Or take private of the city of Los Angeles, turn it all into a Caruso product.

**John Coogan** (1:07)
Potentially. But it was a good weekend, glad to be back. The timeline was burning up over the weekend, over the AI Cold War that's breaking out between the US Frontier Labs and Chinese open source. There's been a whole bunch of new Chinese open source models that have dropped with some promising benchmarks. The latest one that everyone is up in arms about is Moonshots Kimi K3.
It was unveiled last Thursday. Now, they aren't actually...

**Jordi Hays** (1:37)
I kept opening X and thinking, looking, scrolling a few times, thinking, oh, I'm happy for you or sorry that happened. I put my phone away. I feel like I missed a lot.

**John Coogan** (1:50)
Yeah. I mean, it's gated behind an app right now.
The weights are not actually open just yet. That should happen Monday if things go to plan. But of course, there's a lot going back and forth with the administration. People are weighing every possible consequence of this.
It's the classic, it's over, we're back. Is this good for semiconductors? Is this bad for semiconductors? Is this Jevons Paradox? Is it the counter example of Jevons Paradox? It's all very interesting debates and everyone's coming out with their own opinion. Dean Ball was going back and forth with two people, David Sachs and also Amil Michael, who were duking it out on the timeline, fighting it out back and forth.
But, you know, decent takes on both sides, lots to chew through. The headlines for Kimi are impressive, but not wildly surprising based on the current trend lines and model progress. But it does seem to invalidate the thesis that open source would start falling behind, which was something that was start... There was that chart from the government, I believe, that showed closed model progress was, you know, accelerating on this particular exponential and open models were falling behind. This seems like a proper catch up, something that was predicted from, you know, many lab leaders that, you know, the six month gap, three month gap, nine month gap, it will remain just that gap for the foreseeable future. But there are, of course, a bunch of other nuances here. In the most above board scenario, sort of here's what happened. Like the Moonshot team is just a bunch of highly talented AI researchers who marshaled enough compute to release a great model. Open sourcing Kimi is a great way to grab attention, attract talent, drive demand for hosted API services that are more turnkey eventually. There's a very reasonable business model behind open sourcing. Red Hat Linux, of course, is an open source company owned by IBM now. I think the acquisition price was in the $30 billion range, and at any point, you could just say, I'm just doing Red Hat on my own, but a lot of companies pay for consulting, hosted and all sorts of different services around the open source piece of software. That's like the bull case, everything's going well. The more skeptical folks on the timeline are pointing to ideas such as, maybe the compute was smuggled in to China against chip controls, maybe the data was exfiltrated from Frontier Lab APIs routed through wrapper companies, maybe this is a distillation attack. The open source strategy is a deliberate attempt to destroy American companies, it's geopolitical warfare, it's the AI Cold War. And there might even be spies inside companies stealing IP directly, and so that's sort of like the bad version. The reality is probably a mix of both, but we'll know more over time, and we'll hear more statements from the labs and from all sorts of different participants to understand how people are going back and forth on, you know, if you ask Kimi its name, will it just say it's Claude or GPT? And there were some examples of people doing that, seemed like it was Photoshopped, seemed like that also seems like the easiest thing to fix possibly. It's just put it in the prompt, put it in the fine tuning, never find and replace, seems pretty easy.