
Michael Kratsios alleged Moonshot used large-scale distillation of Anthropic’s Fable and accessed Nvidia GB300 systems despite U.S. controls, as a Pew poll found 36% of Americans see China ahead in AI.
White House science adviser Michael Kratsios accused Chinese startup Moonshot AI of using Anthropic model outputs to help train its new Kimi K3 system and of accessing Nvidia GB300 servers despite U.S. export controls, including via Thailand. He said the administration has information that Moonshot built an internal platform for large-scale distillation against U.S. models and shifted access methods to avoid detection, but provided no public evidence. Treasury Secretary Scott Bessent said sanctions and Entity List measures could be used if Chinese firms carry out distillation attacks that amount to intellectual property theft. China rejected the allegations, with its embassy calling them baseless and Foreign Ministry spokesperson Lin Jian saying Beijing opposes politicizing trade and technology issues. The dispute emerged as Kimi K3, released last week, was presented as narrowing the gap with leading U.S. models, while a Pew Research Center poll found 36% of Americans believe China is ahead of the United States in AI, versus 12% who said the U.S. leads.