Boy, oh, boy, oh, boy, has a lot changed

in the last few hours. Kimmy K3 dropped

and it is completely upset both the

balance of power with closed source

models, as well as the balance of power

between the American sort of hegemony

model developers and the Chinese. So,

this model company, Moonshot, has been

working on Kimmy for a while now. And

I've talked about it a little bit on the

channel. You know, they've released them

open source on platforms like Ollama.

But this really takes the cake. I mean,

as you see here, when they dropped just

a few hours ago, Kimmy K3 is almost band

for band on deep software engineering.

I'd very confidently say this is now in

frontier model territory. Frontier

software engineering, it actually whoops

GPT 5.6 souls' ass. Their own internal

benchmarks, as biased as they may be,

tell a similar story. And a few of these

terminal-style benchmarks, like Terminal

Bench 2.1, show it better even than

Fable. In this case, Program Bench far

better than Fable. So, this is going to

change the, you know, balance of user

preferences quite a bit as well. Because

why would you pay Fable prices when you

can get, you know, 98% now of Fable 5

intelligence at Sonnet 5 costs? And

despite how most American companies and

wider companies feel about giving a

bunch of data to, you know, {quote}

{unquote} scary Chinese models, there's

a lot to be said. I mean, if they pump

this thing out into the open source

ecosystem like they did with Kimmy K 2.7

code, that's significantly going to

change the economic calculus of

something like Anthropic, uh, OpenAI,

and so on. So, like, I'm going to try

these models out right now with you

guys, so you could see just what it

means when we're not staring at isolated

benchmarks. But I did want to be clear,

this is a major upset. Like a lot of

people in MakerSchool, a lot of people

in the companies that I consult with,

they've already asked me stuff like,

"Nick, what would it take to move my

entire infrastructure over to Kimmy K3

versus continue operating it on, you

know, closed sort of locked vendors like

OpenAI and Anthropic. And some of these

are billion-dollar companies. I mean,

this is not a small feat. All right, so

first we have some pretty basic design.

This is a simple state of remote work

sort of research paper. As you can see,

the designs now are pretty similar. And

there's a couple of reasons for that.

Odds are Kimmy K3 distilled from Fable 5

directly or there was a fair amount of

sort of like cross-contamination of

datasets and so on and so forth going

on. I think um they're also doing a lot

of like opinionated training to try and

get the models to do things like vary

font styles and so on and so forth. So,

nothing really exciting here. Obviously,

the quality of Kimmy K3 is going to be

pretty similar to that of Fable. You can

see the same thing happening here on

like this little electric vehicle one.

Fable decided to use sort of a bland

research report for a sleep review,

whereas Kimmy over here took a little

bit more creative of a license. But you

can see that they still did something

very similar. They used sort of like

this old-school book style first letter

really, really big. I'd actually say

Kimmy probably sized that better, which

is interesting. Okay, now we have some

3D and WebGL scenes, and this is where

the qualities really start to diverge.

So, on the right-hand side here, this is

sort of like an orbital traffic grid

designed by Fable. So, you guys can see,

you know, it did it did the job. It is

technically a globe and it has

information sort of transferring from

one side to the next. It's kind of neat.

Uh however, if you compare that with

Kimmy's, you'll find a world of

difference. I mean, this is just not

even comparable, not even close. I can

still zoom in. I can still do more or

less everything, but, you know, we have

this extremely like, I don't know,

otherworldly sort of vibe. It's also a

whole country with like information

highways clearly spread throughout. And

as I zoom in, things get a little bit

clearer. You can see it's a

high-quality, high-resolution map with

this overlaid. I can't say the same for

this. So, you know, keep in mind these

are one-shots, obviously, but uh I would

say this did on par if not far better.

All right, now this is a Fables 5

endless flyover of some map that's being

procedurally generated um on the

right-hand side, and you know, like it's

pretty cool. There's some interesting

rumbling going on, which kind of scares

me, if I'm being honest. Uh you know, I

can do the same thing with

uh Kimmy K3 over here. I'd say the

landscape is a lot cleaner and a lot

prettier, probably a lot more beautiful.

That said, there's some issues with

reading the font up top. I can change

the speed by scrolling around. I'm not

going to scroll too much just cuz I want

to show you guys more. If I scroll down

here, we're now sort of doing a

particle-style galaxy, a a nebula. And

on the right-hand side here is Fables.

As you could see, most of the screen

just turns white when I go down here. I

do have the ability to move this. This

kind of reminds me of Spore. I don't

know if you guys ever used to play

Spore, but uh I used to play a lot of

that.

On the right-hand side here, uh looks

like we have the ability to adjust the

slider and uh you know, the the

brightness of the stars and stuff like

that myself, which is kind of cool. If I

click on this plus button, you can see I

can change the the amount of stardust,

the number of arms, you know, the spin,

and so on and so forth, the the the the

chaos marker, which is kind of cool. So,

if I exit that out, I mean, like this is

this is really nice. I don't know if I

can do that here. I don't think I can on

Fables' version. So, yeah, I mean, the

Aura definitely kicked Nebula Andraste's

ass on that one. I'm going to give Kimmy

K3 the win, but uh worth noting that did

take three times the amount of time that

Fable did. Okay, and then we have a

couple more mini-games on the right. We

have Fables 5 with uh you know, the

stacker. So, this is me stacking a

bunch. Looks pretty good. So, obviously,

I'm not too hot at that game, which is

how I lost. Over here, just got to close

some tabs before my computer uh has a

hernia.

Um you know, we could see the stacking

is like three-dimensional, which is kind

of cool. I like that. Um I would say

this is far more akin to the sorts of

things you'll see at like uh I don't

know, like one of those casinos or rec

rooms, which is kind of neat. Not really

seeing too many differences here in the

quality. Obviously, one model is a

little bit better at something, another

model is a little bit better at

something else. The point is, one is at

Sonnet 5 pricing, and the other one is

at Fable 5 pricing. So, sort of like,

choose your own mini game. Would I

rather spend two times longer for, you

know, a third or a fifth of the price,

or rather get it done in 80 seconds as

opposed to 240 seconds, but sort of burn

a hole in my wallet? What does the world

look like when we all have access to

Fable 5 intelligence in our pockets for

virtually free? Cuz if it's not clear,

that's where all of this stuff is going.

The intelligence isn't getting more

expensive. Bar for bar, pound for pound,

it's dropping something like 30 to 40

times a year, uh based off of my

calculation. It is getting so

overwhelmingly expensive that I see it

feasible at some point in the future

that you actually have large language

models running uh on headphones capable

of doing the vast majority of the

lifting that Fable 5 is doing. And

that's just in a few years. So, just for

the sake of argument, what do you think

would happen in a world like that? Now,

I don't think it takes a neuroscientist

to explain this, but uh I have a

published paper in neuroscience, so I'll

try and tell you. To make a long story

short, we'll have significantly

democratized access to an average human

intelligence. We'll be able to spin up

dozens, if not hundreds, of these

literally at the snap of a finger to

help us with any intellectually valuable

task. When this occurs, the entire

scarcity aspect of the economy will

change completely. I mean, right now,

human knowledge work is the bottleneck

to virtually everything. You know, if

you want a service, you want a website,

if you want a consulting report, if you

want to develop a new piece of

technology, if you want to do material

science, push the frontier of science,

and so on and so forth, forward, you

need people, right? Like, we're people.

It's our meat brains that are doing all

of this. What does the world uh do? How

do we value economic and human economic

labor, specifically? What happens to the

vast majority of jobs that we all have?

So, an interesting thought experiment

for you is let's say for whatever

reason, maybe just the laws of physics,

models stop growing smarter. They just

get no smarter starting right now. So,

basically we capped out at, you know, a

Fable 5 consumer level model

and we just can't grow it smarter.

What do you think happens to the world

over the course of the next 20 or 30

years?

Does all scientific advancement and

progression and development stop even

though the models themselves are no

longer going to grow any more

intelligent? Human beings will come up

with ways to use these models, to

incorporate them into society, to weave

them into the fabric of social life

tremendously over the course of the next

20 or 30 years. I mean, we'll have AI

assistants waking us up in the morning.

We'll have AI assistants coordinating

the the building and architecture of new

freaking planets. We could have a Fable

5 level intelligence shepherd thousands

of humans across a freaking generation

ship in the year 2982.

The model intelligence really isn't the

bottleneck anymore if that makes sense.

It's the distribution. So,

what Kimmy here, a Kimmy K3 effectively

solves is that distribution. You could

have everybody on planet Earth, you

know, who has the GPU access, which is

another story entirely. But everybody on

planet Earth running this on a future,

you know, Olama style setup where it's

totally open. And to be clear, I don't

have the answers to these questions. I'm

just asking them because I think now is

the time to ask them, not in 10 years

when those answers could have helped us

10 years ago, right? So, [snorts]

seeing cool model technologies like

Kimmy K3 really fires me up and I'm

happy because I don't want like a

monopolar

uh monopolar sort of style future where

all of the intelligences congregated and

segregated in one country. I think we

should naturally have some form of

competition. Anyway, think about it.

We're all going to have Kimmy K3 style

models on our phones. They're all going

to be 100% accessible, crazy uptime.

What more do you really need at our

current level? And if the answer to that

question is nothing, then clearly

something about our current level is

going to have to change. There's just no

way we can sustain this current economy

in a future where models do vast

majority of everything.