The White House is sounding the alarm over Moonshot AI’s new model, Kimi K3, accusing it of secretly distilling Anthropic’s Fable AI — a move Washington says signals China’s aggressive, under-the-radar AI advancement. While U.S. officials like Michael Kratsios and Treasury Secretary Scott Bessent warn of serious consequences for IP theft, AI experts question whether Kimi K3’s leapfrog performance could be explained solely by distillation — hinting at deeper, undisclosed tech efforts. This clash underscores the global AI race’s growing friction: America seeks to protect innovation while China pushes ahead — and the stakes could reshape the future of AI worldwide.
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