A top Trump administration official has accused Chinese AI startup Moonshot of stealing from U.S. AI company Anthropic. Michael Kratsios, the president’s science and technology advisor, said Moonshot’s new K3 AI model, released last week, distilled Anthropic’s new Fable model, released last month as part of its Mythos series. Kratsios added that Moonshot did so using Thailand-based Nvidia GB300 AI systems, which are prohibited from being sold to Chinese companies under current U.S. export controls. “They developed a sophisticated internal platform to conduct large scale distillation against U.S. models,” Kratsios wrote, calling the practice “unacceptable.” U.S. Treasury Secretary Scott Bessent said he was considering blacklisting and sanctioning Moonshot. A spokesperson for the Chinese embassy in Washington called the accusations “entirely unfounded.”