White House Accuses Moonshot AI of 'Industrial Distillation' of Anthropic's Models
In a major escalation of the US-China AI rivalry, Michael Kratsios, Director of the White House Office of Science and Technology Policy, publicly accused Chinese lab Moonshot AI of using 'large-scale covert industrial distillation' to build its Kimi K3 model. The 2.8-trillion-parameter K3 model recently surpassed Anthropic’s Claude Fable 5 on global coding benchmarks. The US alleges Moonshot essentially 'copied' the American model's reasoning capabilities to close the technological gap, a claim Moonshot has not yet conceded.