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.
100 Articles
100 Articles
White House Says China Stole Anthropic's AI Model
A top White House official has accused a Chinese startup of covertly stealing technology from American artificial intelligence company Anthropic and accessing restricted Nvidia chips to power its newest model, with the Trump administration now warning sanctions could follow. Michael Kratsios, director of the White House Office of Science and Technology Policy, said Wednesday the administration has confirmed that Moonshot AI, a China-based firm, …
White House Adviser Accuses Chinese AI of Stealing From Anthropic
A senior White House official has accused China’s Moonshot AI of covertly stealing Anthropic’s technology and accessing restricted Nvidia chips through Thailand-based servers to build its breakout Kimi K3 model. In a July 22 post on X, Office of Science and Technology Policy Director Michael Kratsios said that it has information that Moonshot AI “distilled Anthropic’s Fable for the development of its K3 model.” Moonshot, a Beijing-based artifici…
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