White House Accuses Moonshot AI of Stealing U.S. Technology

Michael Kratsios, director of the White House Office of Science and Technology Policy, accused Chinese AI startup Moonshot AI of stealing proprietary U.S. technology to develop its K3 model. Kratsios stated that Moonshot AI distilled Anthropic's Fable model using a sophisticated internal platform designed to bypass detection through multiple access methods.

Beyond the distillation of software, the U.S. official alleged that the company acquired GB300-equipped servers and accessed such systems in Thailand to train its models. Kratsios distinguished legitimate AI distillation, which supports open innovation, from covert industrial efforts aimed at undermining American research, which he termed unacceptable.