Fable Five, touted as a top-tier secure AI, was swiftly hacked after launch—prompting the Trump administration to shut it down temporarily. Meanwhile, China’s Kimi 3 from Moonshot AI surged to the top, sparking suspicion that it may have used Fable Five’s answers to train. This “model distillation” raises alarms, with Treasury Secretary Scott Bessent warning of possible sanctions and an entity list designation for Moonshot. The race for AI supremacy now hinges on safety, control, and alignment—raising urgent questions about global competition and the future of AI development.
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