Updated
Updated · BBC.com · Jul 23
Kratsios Accuses Moonshot AI of Distilling Anthropic’s Fable for K3, Using GB300 Servers
Updated
Updated · BBC.com · Jul 23

Kratsios Accuses Moonshot AI of Distilling Anthropic’s Fable for K3, Using GB300 Servers

3 articles · Updated · BBC.com · Jul 23

Summary

  • Kratsios said the Trump administration has information that Moonshot AI distilled Anthropic’s Fable model while building K3 and created an internal platform for large-scale distillation of American models.
  • Moonshot also allegedly obtained Nvidia GB300-equipped servers despite a US sales ban to Chinese entities, expanding earlier White House claims that it used restricted chips and violated export-control rules.
  • Scott Bessent said the administration is investigating whether Chinese AI firms improperly distilled US models and could sanction companies involved in intellectual-property theft.
  • The Commerce Department had not drafted plans as of Wednesday to add Chinese AI companies to the Entity List, even as officials sharpen rhetoric against Chinese developers.
  • US startups are urging Trump not to restrict Chinese open-weight AI broadly, arguing targeted enforcement would address security concerns without raising costs or hurting American competition.

Insights

With China's AI advancing, are US chip bans creating a more sophisticated black market?
How did a three-year-old startup become a key target in the US-China tech rivalry?
Is Southeast Asia becoming the shadow battlefield for the US-China AI chip war?