White House accuses Chinese Moonshot AI model of stealing US technology

The White House on Wednesday accused Chinese artificial intelligence startup Moonshot AI of stealing proprietary U.S. technology to develop its latest AI model, as Washington and Beijing compete for dominance in the advancing technology.

“We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model,” Michael Kratsios, director of the White House Office of Science and Technology Policy, said in a post on X. “To do this they developed a sophisticated internal platform to conduct large-scale distillation against U.S. models, allowing them to quickly switch between multiple methods of access to avoid detection.”