Treasury threatens sanctions after White House claims Moonshot distilled Anthropic’s Fable
TechCrunch AI Rebecca Bellan ● Covered by 17 sources
U.S. Treasury Secretary Scott Bessent warned that sanctions are possible after White House officials accused Chinese AI company Moonshot of improperly distilling Anthropic's Fable model to develop its own K3 model. The White House alleged Moonshot obtained Nvidia GB300 servers banned from export to China and conducted large-scale distillation against U.S. AI models. The accusations have intensified debate in Washington about whether the U.S. should restrict Chinese open-weight AI models to preserve technological advantage.
Why it matters
Treasury Secretary Scott Bessent warned the U.S. government could sanction Chinese AI companies after White House officials accused Moonshot of distilling Anthropic's Fable model to develop Kimi K3.
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