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.
122 Articles
122 Articles
An adviser to U.S. President Donald Trump said Chinese artificial intelligence Kimi, which has gone viral, is built on stolen technology.
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Leading Chinese Artificial Intelligence Company ‘Moonshot AI’ Accused of Stealing Anthropic Data in Covert Plot
The Trump administration is accusing a Chinese artificial intelligence (AI) company of conducting a “covert” plot to steal Anthropic’s data to boost its AI models.
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