Well, that escalated quickly. What started as a fairly upbeat week — banks kicking off earnings season with a bang — ended with Wall Street’s worst weekly showing in over a month, after a Chinese AI startup nobody outside the industry had heard of dropped a model that spooked the entire chip sector. Throw in a fresh flare-up between the US and Iran, and you’ve got a week that reminded everyone the AI trade can go down just as fast as it goes up. Grab a coffee — here’s what actually matters.

📰 What’s Happening

The headline number first: the S&P 500 fell 1.6% this week, the Nasdaq dropped 2.9%, and the Dow slipped 0.9% — the worst week for tech in a while. The culprit was a Beijing-based startup called Moonshot AI, backed by Alibaba, which on Thursday unveiled its newest AI model, Kimi K3. The company claims it performs competitively with the best Western AI models — at a fraction of the cost to build.