Skip to main content
See every side of every news story
Published loading...Updated

US Accuses China's Moonshot AI of Stealing Anthropic IP

Michael Kratsios said Moonshot used covert distillation and banned Nvidia chips, while Scott Bessent warned sanctions could follow.

  • On Wednesday, White House Office of Science and Technology Policy Director Michael Kratsios accused China-based Moonshot AI of distilling Anthropic's Fable model to develop Kimi K3, alleging the startup built a sophisticated platform to conduct large-scale distillation while switching access methods to avoid detection.
  • Anthropic accused Moonshot in February of conducting industrial-scale distillation campaigns, generating over 16 million exchanges with Claude through approximately 24,000 fraudulent accounts, with Moonshot alone linked to 3.4 million of those exchanges.
  • K3 costs 70% less per token at $3 per million input tokens versus Fable 5's $10 and scored 1,679 on Frontend Code Arena benchmarks, ahead of Fable 5's 1,631, prompting Morgan Stanley to describe the model as an 'all-round catch-up' in performance and pricing.
  • Treasury Secretary Scott Bessent escalated on Tuesday, warning that "when PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table."
  • Congressional legislation targeting unauthorized distillation has advanced in both chambers, while US and Chinese officials are scheduled to hold AI talks in September ahead of President Donald Trump's meeting with President Xi Jinping on September 24.
Insights by Ground AI
Podcasts & Opinions

100 Articles

A new AI model from Moonshot AI shakes off the supremacy of Open AI and Anthropic. Washington is now threatening new sanctions. Meanwhile, China's AI is becoming increasingly popular in Germany.

·Frankfurt, Germany
Read Full Article
Lean Right

In the ever-evolving world of artificial intelligence, new models like Kimi K3 raise questions about how they achieve advanced capabilities. This article examines the warnings and concerns surrounding cloning techniques and their impact on the development of these models. Questions about the efficiency of the Kimi K3 model: White House science advisor Michael Kratsios stated that the Chinese company Moonshot, behind Kimi K3, the largest open-wei…

Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 39% of the sources lean Right
39% Right

Factuality Info Icon

To view factuality data please Upgrade to Premium

Ownership

Info Icon

To view ownership data please Upgrade to Vantage

Australian Financial Review broke the news in Sydney, Australia on Tuesday, July 21, 2026.
Too Big Arrow Icon
Sources are mostly out of (0)

Similar News Topics

News
Feed Dots Icon
For You
Search Icon
Search
Blindspot LogoBlindspotLocal