Moonshot AI Negotiates Revenue-Sharing Deals With Microsoft, Amazon and Google

Moonshot AI is negotiating revenue-sharing agreements with Microsoft, Amazon, and Google, Reuters reported on August 26, 2026. The Beijing-based startup wants these three cloud giants to host its Kimi K3 model. Moonshot is seeking up to 30% of revenue generated from K3-related services. A completed deal would mark the first major revenue-sharing pact between a Chinese AI firm and a major US cloud provider.

What Moonshot AI Is Asking For

A 30% Revenue Share Across Three Clouds

Moonshot wants up to 30% of revenue from K3-related services running on Microsoft Azure, Amazon Web Services, and Google Cloud. That proposed split matches terms Moonshot has already outlined for other major customers using its open-weight model. Talks remain at an early stage with no guaranteed outcome.

Sources: Moonshot AI is in early talks over revenue-sharing agreements with Microsoft, Amazon, and Google to host Kimi K3, and is seeking up to a 30% share (Reuters)

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Key Terms Still Unresolved

Several details remain unsettled in these negotiations, including exact revenue division, data access, and token-usage auditing methods. Token consumption determines billing under usage-based AI service models, making accurate measurement central to any final agreement. These unresolved points could still derail talks entirely.

Why Major Cloud Providers Matter to Moonshot

Enterprise Adoption Runs Through Big Cloud Platforms

For AI model providers like Moonshot, major cloud providers represent the primary route to enterprise customers. Kimi K3 is technically open-weight and downloadable, but its 2.8 trillion parameters make self-hosting impractical for most businesses. That computing cost reality pushes Moonshot toward partnerships with established cloud infrastructure providers instead.

Moonshot’s Broader Strategy Beyond These Three

Moonshot has already signed similar revenue-sharing agreements with smaller cloud platforms, though details remain undisclosed. Chinese IT services provider Chinasoft International confirmed its own revenue-sharing deal with Moonshot back in July. Alibaba, a Moonshot backer, is separately pursuing similar revenue-sharing terms for its own open-source AI model.

Political and Security Tensions Surround the Talks

US Officials Have Raised Serious Concerns

Treasury Secretary Scott Bessent said last month that he might place Moonshot under U.S. trade restrictions. Separately, White House Office of Science and Technology Policy Director Michael Kratsios accused Moonshot of using distillation techniques tied to Anthropic’s advanced model, Fable, to help build Kimi K3. Kratsios also alleged the company illegally acquired Nvidia chips for training.

Moonshot Denies the Distillation Claims

Moonshot has rejected these allegations, telling China’s National Business Daily that Kimi K3’s performance gains stem from original architectural changes. The company maintains its technical approach differs fundamentally from the copying claims made by US officials. These disputes add political friction to the ongoing cloud negotiations.

Moonshot’s Business Position and Growth Trajectory

Strong Funding and IPO Plans Underway

Founded in 2023 by Carnegie Mellon-trained researcher Yang Zhilin, Moonshot raised more than $2 billion in May 2026. The startup is now preparing for a potential Hong Kong listing. Alibaba remains among several major Chinese tech backers supporting Moonshot’s continued expansion into global AI markets.

Chinese AI Models Gain US Traction

These talks highlight how Chinese AI models, often priced well below Western alternatives, continue gaining ground in the US market. This progress comes despite Washington’s export bans on advanced AI chips to China. Growing enterprise interest suggests cost competitiveness is outweighing some geopolitical friction for cloud buyers.

Final Thoughts

A completed deal would reshape how Chinese AI models reach US enterprise customers through major cloud infrastructure. Political scrutiny and unresolved technical terms still stand in the way. Investors should watch whether Microsoft, Amazon, or Google confirm any agreement in the coming months.

Disclaimer:

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