Stock Markets January 27, 2026

Alibaba-backed Moonshot AI rolls out Kimi K2.5, a native multimodal large language model

New release adds image and video understanding, improved code-to-UI generation and OpenAI API compatibility

By Leila Farooq
Alibaba-backed Moonshot AI rolls out Kimi K2.5, a native multimodal large language model

Moonshot AI, a Chinese startup supported by Alibaba, has released Kimi K2.5, its most advanced large language model yet. The update introduces a native multimodal architecture for text, image and video inputs, claims enhanced coding capabilities that can produce functional, visually rich user interfaces from natural language prompts, and is compatible with OpenAI's API format to ease developer adoption.

Key Points

  • Moonshot AI released Kimi K2.5, its most advanced large language model, backed by Alibaba.
  • Kimi K2.5 introduces a native multimodal architecture supporting text, image and video inputs and claims improved coding performance enabling generation of functional, visually rich UIs from natural language prompts.
  • The model is compatible with OpenAI's API format, which Moonshot says lowers switching costs for developers and could aid adoption among developers and enterprise users.

Moonshot AI, a Chinese artificial intelligence startup backed by Alibaba, announced the release of Kimi K2.5, the newest iteration of its flagship large language model. The company described the update as its most advanced model to date and highlighted several technical and developer-focused enhancements.

At the core of Kimi K2.5 is a native multimodal architecture that accepts both text and visual inputs. Moonshot said this expands the model's remit beyond conventional language tasks to include image and video understanding, enabling a wider set of workloads to be addressed within a single model framework.

Moonshot also said the model delivers notable improvements in coding performance. According to the company, these gains allow developers to instruct the model with natural language prompts and obtain fully functional, visually rich user interfaces as output. The company framed this capability as a step toward accelerating the translation of design intent and functional requirements into working UI code.

To smooth developer migration and integration, Kimi K2.5 is compatible with OpenAI's API format. Moonshot noted that this compatibility lowers switching costs for developers, making it easier to test or move workloads between platforms that adopt the same interface conventions.

The launch comes amid what Moonshot characterized as intensifying competition within China’s AI sector. The company said the release underscores expanding efforts by Chinese AI firms, backed by major technology groups such as Alibaba, to create domestic alternatives to Western models and to drive broader adoption among developers and enterprise customers.

While Moonshot emphasized the model's multimodal and coding advancements, the company framed the release as part of a broader push to attract developer and enterprise engagement through technical capabilities and API compatibility.


Impacted sectors: technology firms, software developers, enterprise IT and cloud-related services are directly implicated by the model's capabilities and compatibility.

Risks

  • The article indicates intensifying competition in China’s AI sector, which creates uncertainty for market share and adoption among domestic vendors and could affect technology investment decisions in the sector.
  • While Moonshot highlights coding and multimodal advances, the company-provided claims are the primary source for performance assertions, leaving independent validation of those capabilities uncertain.
  • API-format compatibility may lower switching costs, but the extent to which developers and enterprises will migrate or deploy the model at scale remains unclear from the information provided.

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