A White House official has accused Moonshot AI, the Beijing-based startup behind the Kimi K3 model, of improperly using American AI models and Nvidia chips to build what is now the largest open-weight AI system on the planet.
Kimi K3 launched on July 17 with 2.8 trillion parameters and promptly started matching or closely rivaling systems from Anthropic and OpenAI on key benchmarks, particularly in coding tasks. Demand was so intense that Moonshot had to halt new subscriptions almost immediately after launch.
What the White House is actually alleging
The core accusation is twofold. First, that Moonshot used Nvidia chips that should have been restricted under existing export controls. Second, that the company employed AI distillation techniques on US-built models, essentially learning from American systems to train its own.
David Sacks, an AI advisor to the Trump administration, called the situation an “inflection point” in AI policy regarding competition with open-source technologies.
