China's Moonshot AI stole from Anthropic, Trump tech adviser says

BBC Business Business 07/23/2026, 08:52 Score 7/10

Summary

The allegations come as Chinese AI companies are facing increased US government scrutiny.

Original Text

Kimi K3 is an AI model developed by Beijing-based Moonshot AI Kimi K3 is an AI model developed by Beijing-based Moonshot AI

PublishedPublished25 minutes ago25 minutes ago

A White House adviser has accused China's Moonshot AI of a "large scale" effort to steal the capabilities of top US artificial intelligence (AI) models.A White House adviser has accused China's Moonshot AI of a "large scale" effort to steal the capabilities of top US artificial intelligence (AI) models.

US President Donald Trump's Science and Technology adviser Michael Kratsios said Moonshot AI carried out the campaign through what is known as distillation - when a weaker AI model extracts answers from a stronger one.US President Donald Trump's Science and Technology adviser Michael Kratsios said Moonshot AI carried out the campaign through what is known as distillation - when a weaker AI model extracts answers from a stronger one.

Moonshot also gained access to restricted cutting-edge Nvidia servers to train its models, Moonshot also gained access to restricted cutting-edge Nvidia servers to train its models, Kratsios said in a social postKratsios said in a social post, , externalexternal on Wednesday. on Wednesday.

The BBC has contacted Moonshot, Anthropic, the White House and Nvidia for comment.The BBC has contacted Moonshot, Anthropic, the White House and Nvidia for comment.

Kratsios said on X that the US government has information that Moonshot AI "distilled" capabilities from Anthropic's Fable AI for the development of its K3 model.Kratsios said on X that the US government has information that Moonshot AI "distilled" capabilities from Anthropic's Fable AI for the development of its K3 model.

Kimi K3 gained attention around the world Kimi K3 gained attention around the world after it was unveiled last weekafter it was unveiled last week, with many believing it to have narrowed the gap b, with many believing it to have narrowed the gap between Western and Chineetween Western and Chinese AI models. Moonshot said its K3 model is able to rival top US technology.se AI models. Moonshot said its K3 model is able to rival top US technology.

Kratsios' allegations come just a day after Treasury Secretary Scott Bessent said the US would examine whether Chinese AI models have stolen the capabilities from American rivals.Kratsios' allegations come just a day after Treasury Secretary Scott Bessent said the US would examine whether Chinese AI models have stolen the capabilities from American rivals.

"We've seen a lot of talk about open-source models coming and threatening the large language models in the US," Bessent told Fox Business on Tuesday. "We've seen a lot of talk about open-source models coming and threatening the large language models in the US," Bessent told Fox Business on Tuesday.

"If we see, especially, that overseas models are stealing from our great companies, we have the ability to sanction them," he added."If we see, especially, that overseas models are stealing from our great companies, we have the ability to sanction them," he added.

The increased scrutiny by the US of Chinese AI companies also comes as Trump is expected to meet his Chinese counterpart Xi Jinping in September.The increased scrutiny by the US of Chinese AI companies also comes as Trump is expected to meet his Chinese counterpart Xi Jinping in September.