Key HighlightsThe Chinese startup is pursuing development of Kimi K4, an enhanced successor to its current K3 systemTraining for K3 utilized Nvidia Blackwell processors, including GB300 variants prohibited from Chinese exportTrump administration officials state K3 training occurred in a Thai data facility; sources indicate partial Chinese trainingThe firm faces allegations of using distillation techniques from Anthropic’s Fable system during K3 developmentMoonshot AI is exploring capital raises targeting a $50 billion market value before pursuing an IPOA recent report from The Information reveals that Moonshot AI, a Chinese artificial intelligence company, is advancing plans for Kimi K4, a more powerful iteration of its AI system. This development would require additional Nvidia processors—hardware that current US regulations prohibit Chinese entities from obtaining.MOONSHOT SEEKS MORE $NVDA BLACKWELL CHIPS FOR LARGER KIMI K4The Information reports Moonshot AI is discussing Kimi K4, which would be significantly larger than its 2.8 trillion-parameter Kimi K3, for which they are seeking access to more Nvidia Blackwell GPUs despite U.S.… pic.twitter.com/XA6mQYcy4M— Wall St Engine (@wallstengine) July 28, 2026The Beijing-based startup unveiled Kimi K3 not long ago, an open-source AI system featuring 2.8 trillion parameters. This specification positions it as the world’s most extensive open-weight model currently available.The training process for K3 involved Nvidia Blackwell GPUs, specifically including the sophisticated GB300 variant. US Department of Commerce regulations explicitly prohibit the export of these processors to Chinese territories.Michael Kratsios, serving as science advisor under President Donald Trump, indicated that the K3 model underwent training at a Thai-based data facility. Current US export control frameworks may permit Chinese organizations to utilize Nvidia hardware through server infrastructure positioned in foreign nations.Nevertheless, an insider informed The Information that portions of K3’s training took place within Chinese borders. China’s data transfer restrictions create substantial obstacles for relocating the massive datasets essential for pre-training to international server locations.Model Distillation ClaimsKratsios has further alleged that Moonshot employed distillation techniques using Anthropic’s Fable model during K3’s creation. This process involves training a less capable system using outputs generated by a more sophisticated model.Scott Bessent, serving as US Treasury Secretary, indicated that the current administration might impose sanctions on open-weight Chinese AI systems if evidence confirms distillation from American-developed models.Neither Moonshot AI nor Nvidia have provided responses to requests for comment on these matters.Additional Chinese AI developers have allegedly utilized Blackwell processors as well. Alibaba’s Qwen3.8-Max model has been identified in various reports as employing this hardware.Market Interest and Capital RaisingFollowing Kimi K3’s launch, Moonshot was forced to temporarily halt new subscription registrations due to overwhelming demand that surpassed its operational capacity.The organization is currently exploring additional fundraising opportunities in preparation for a public market debut. Industry reports suggest the company could pursue a valuation approaching $50 billion.To support K4 model development, Moonshot is reportedly pursuing acquisition of additional Blackwell GPUs. Two independent sources confirmed to The Information that the company is actively pursuing this objective.Jensen Huang, Nvidia’s CEO, recently co-signed correspondence to the US Congress advocating for open AI model development, arguing that open systems “strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.”Despite ongoing chip export restrictions, emerging reports indicate that Chinese AI companies continue discovering methods to obtain access to advanced Nvidia hardware platforms.The post Moonshot AI Pursues Nvidia (NVDA) Blackwell GPUs for Kimi K4 Amid Export Ban appeared first on Blockonomi.