Moonshot, the developer of the 2.8 trillion parameter Kimi K3 open model, paused new consumer subscriptions just three days after launch because demand was hitting its GPU cluster limits. This capacity shortage notice came the same week TSMC's Taiwan-listed shares fell 7.3%, with the market blaming Kimi K3 for reducing hardware demand.
The market's assumption that open models reduce hardware demand is directly contradicted by Moonshot's immediate GPU capacity limits, indicating sustained compute demand for inference.