The White House has accused Chinese AI startup Moonshot AI of secretly using Anthropic’s Fable models to develop its K3 artificial intelligence model. Michael Kratsios, Director of the White House Office of Science and Technology Policy, said Moonshot also built an internal platform to copy U.S. AI models on a large scale.
So far, the U.S. administration has not released evidence for these claims, and Moonshot AI has not responded publicly. Kratsios shared these allegations in a post on X, saying the U.S. government had information that Moonshot AI used Anthropic’s technology while developing K3.
“We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model,” he wrote.
We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model.
To do this they developed a sophisticated internal platform to conduct large scale distillation against U.S. models, allowing them to quickly switch between multiple methods of…
— Director Michael Kratsios (@mkratsios47) July 22, 2026
He also claimed the company built “a sophisticated internal platform to conduct large-scale distillation against U.S. models” and could switch between different ways of accessing these models to avoid being detected.
According to Kratsios, Moonshot AI increased its processing capacity by purchasing servers in Thailand. These servers have NVIDIA GB300 systems, which, he thinks, were most likely utilized to train its AI models.
Because Anthropic and Moonshot AI are both seen as significant participants in the global AI race, these accusations have garnered attention. Additionally, Moonshot AI is apparently preparing its own IPO, and Anthropic is anticipated to go public.
Kratsios said there is a difference between legal AI distillation and the practices the administration accuses Moonshot of using. He explained that the United States supports legal AI development and understands that distillation can help make smaller, more efficient models.
However, he added, “Large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.”
These allegations come just weeks after the U.S. government eased export restrictions on Anthropic’s most advanced AI models. Earlier this month, Anthropic said the U.S. Department of Commerce lifted export controls, so the company could again offer international access to its Claude Fable 5 and Mythos 5 models.
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