Microsoft weighs Kimi K3 to cut AI costs by $600M

Microsoft reportedly plans to test Moonshot AI’s Kimi K3 model inside Copilot and potentially run it on Azure, aiming to replace or augment OpenAI/Anthropic models. At $15 per million tokens, Kimi K3 is far cheaper than Claude, which could save Microsoft up to $600 million (about 60% per token) if it matches frontier-model capabilities and features against OpenAI/Anthropic. OpenAI and others have raised security concerns about cheaper Chinese models gaining a foothold in the U.S. AI race.