aI AND ML
And accuses Thailand hosting hardware that may have helped distillation attack
Donald Trump’s Assistant for Science and Technology, Michael Kratsios, has accused China’s Moonshot AI of creating its head-turning Kimi K3 model distilling Anthropic’s Fable.Kimi K3 is 2.8-trillion-parameter open-weights model of such impressive quality that its mere existence suggests Chinese AI researchers aren’t far behind their US rivals. Moonshot AI released it on July 16, and not long afterwards the value of US AI stocks sank as investors worried the model could damage their businesses.Kratsios used a Xeet to allege that Kimi K3 is the result of distillation – a technique that involves bulk queries of one model to train another – rather than innovation.
“We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model,” he wrote, adding the assertion that the Chinese 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 accused the company of gaining access to servers packing Nvidia’s GB300 accelerator – a model the US does not allow to be sold in China – and of accessing GB300s running in Thailand.










