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.
Kratsios said Moonshot AI expanded its computing power by buying servers with NVIDIA GB300 systems in Thailand, which he believes were probably used to train its AI models.
These allegations have attracted attention because both Anthropic and Moonshot AI are considered major players in the global AI race. The controversy also comes as Anthropic is expected to go public, and Moonshot AI is reportedly planning its own IPO.
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.
Despite the seriousness of these claims, the White House has not shared any supporting evidence with the public. Moonshot AI also had not responded publicly when the allegations were made.
This dispute shows the rising tensions over artificial intelligence development and intellectual property as competition between the United States and China grows. As governments see AI as a strategic technology, accusations about model development and proprietary research will likely face even more scrutiny in the coming months.
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