7 Takeaways Post K3 Release: Connect The Dots on Models, Cloud & Applications

研报英文原文证据摘录

7 Takeaways Post K3 Release: Connect The Dots on Models, Cloud & Applications

China (PRC) | Internet EquityJulyResearch20, 2026

Exhibit 1 - Artificial Analysis Intelligence Index7 Takeaways Post K3 Release: Connect The

Dots on Models, Cloud & Applications vs Blended Price

Highlights (1) Moonshot AI: K3 is far from reaching upper limit in

intelligence. ARR has fastest growth the next day; (2) More T-parameters

China models (e.g. Qwen3.8, 2.4T) to come; (3) Updates from Zhipu and

Stepfun; (4) Compute is focus on recent financing /KC Preview (link);

(5)Token Expenditure Index remains soft; (6) Video models landscape .

Source: Artificial Analysis, Jefferies

do not see notable change;(7) Tencent's WorkBuddy gains traction; (8)

Reaffirm Buy on BABA’s full stack capabilities Exhibit 2 - Total parameters for different

flagship models

In this report, we provide investors with data points on model pricing by companies,

pricing comparison between China and US, model intelligence from Artificial Analysis, token

consumption in OpenRouter, Token Expenditure Index trends and other industry data for

analysis.

.

Source: Jefferies

Closing the gap amid competition. Investors are surprised to see K3 (link) achieved new

intelligence milestone and ranked at top positions in different metrics. According to Arena Exhibit 3 - Blended prices for China models vs

(Exhibit 5). This is the first time China takes the lead over US models in Frontend Code Arena US models (2Q26)

vs early 2025 (DeepSeek-R1 is the last Chinese models came close with US models). Investors (USD16 per million tokens)

feedback is more about the closing of intelligence gap and anticipate more Chinese models 1214

(Exhibit 2) having T-parameter in coming months. Balance between intelligence and good to 108