- A White House official accused Moonshot AI of stealing from Anthropic by distilling the Fable model for its K3 model.
- Moonshot AI allegedly used a sophisticated internal platform to conduct large-scale distillation while evading detection.
- Kimi K3 is a leading open-source AI model, performing at or above the level of models from Anthropic and OpenAI, but will be released freely.
- The White House stressed that legitimate distillation is acceptable, but covert industrial distillation to steal technology is not.
- Treasury Secretary suggested possible sanctions against Chinese companies if improper distillation is proven.
- This incident marks a rare alignment between the Trump administration and Anthropic, following previous tensions.
- Anthropic's head of public policy thanked the official and called illicit distillation a national security risk.