A top U.S. White House advisor is accusing China’s Moonshot AI of secretly stealing the brains of top American AI models using a technique called “distillation,” where smaller models learn from larger ones. The claim includes allegations that Moonshot accessed elite Nvidia hardware and copied capabilities from Anthropic’s Fable AI to power its K3 model — a move that’s sparking global concern. This comes hot on the heels of Treasury Secretary Scott Bessent hinting at potential sanctions if evidence of tech theft is found. With President Trump set to meet Xi Jinping later this year, the timing underscores how seriously the U.S. government is taking this escalating AI espionage battle — turning the race into a high-stakes game of innovation, ethics, and national security.
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