A top White House technology official accused Chinese company Moonshot AI of distilling Anthropic’s recently-released Fable model to develop its own K3 model. Michael Kratsios, who leads the White House Office of Science and Technology Policy, wrote on X Wednesday that Moonshot AI, a Beijing, China-based AI company, “developed a sophisticated internal platform to conduct large scale distillation against U.S. models, allowing them to quickly switch between multiple methods of access to avoid detection.” Kratsios also said the company has used GB300 servers – either newly acquired or through Thailand – to train its AI models. He stated that “large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.” Kratsios did not provide details on how the U.S. government learned that K3 had been distilled from Anthropic’s model. On their website, Moonshot AI describes its Kimi K3 model as the first open 2.8 trillion parameter model, and promotes its lower token costs while still delivering near-frontier performance. A request for comment sent to Moonshot AI was not returned before this article’s publication.