Chinese artificial intelligence startup Moonshot AI has temporarily paused new subscriptions for its Kimi K3 model after overwhelming demand strained its computing capacity. The company announced the suspension on Sunday, saying it would prioritize existing paid users while allocating limited resources. The pause follows the release of Kimi K3, a 2.8 trillion-parameter open-weight model that Moonshot describes as the world’s largest of its kind. The surge in user activity over 48 hours exceeded forecasts, prompting the company to plan separate membership tiers, including one focused on coding, to better manage computing resources.

The capacity crunch comes as Moonshot seeks up to $2 billion in new funding and prepares for a potential Hong Kong initial public offering. The firm, founded in 2023 by AI researcher Yang Zhilin, has raised more than $5.5 billion to date, with investors including Meituan, China Mobile, and CPE. It has engaged Goldman Sachs and China International Capital Corp as advisers for the IPO, though the timeline remains uncertain.

Moonshot’s situation reflects broader challenges for Chinese AI developers facing surging demand and limited access to advanced computing hardware due to U.S. export restrictions.