The First Open-Source Model to Beat Claude on Agentic Tool Use Costs Five Times Less.

Kimi K2.7 Code, the Distillation Accusation, and Why the Harvard Professor Who Studied Disruption for 30 Years Would Recognize This Pattern Instantly

Photo by Gabriele Malaspina on Unsplash

Here is what actually happened on June 12, 2026. Moonshot AI, a Beijing-based startup founded in 2023 by Zhilin Yang (a Tsinghua alumnus and former Google researcher who worked on the original Google Imagen model), released Kimi K2.7 Code on Hugging Face under a Modified MIT license. It is a coding-focused, agentic…