A Trump defense official criticized Anthropic days after it backed White House claims that China's Moonshot AI stole U.S. AI capabilities.

"We have information that Moonshot AI distilled Anthropic's Fable for the development of its K3 model," a top White House official wrote on X.

Moonshot AI's alleged covert distillation of Anthropic's Fable sparks U.S.-China AI tensions, posing risks and opportunities for investors.