Story perspectives

US probes Chinese AI distillation; Alibaba accused, Kimi K3 excels

7/21/2026

Summary

Story summary

U.S. Treasury Secretary Scott Bessent said on May 29, 2026 the Trump administration will investigate whether Chinese AI models were distilled from American models, that watermarks from U.S. models appear on Chinese models, and that he will attend AI talks with China in September.
Anthropic alleged that Alibaba executed the largest known distillation attack against it.
Moonshot AI’s Kimi K3, released this month, outperforms OpenAI and Anthropic on several benchmarks.

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Story summary

U.S. Treasury Secretary Scott Bessent said on May 29, 2026 the Trump administration will investigate whether Chinese AI models were distilled from American models, that watermarks from U.S. models appear on Chinese models, and that he will attend AI talks with China in September.
Anthropic alleged that Alibaba executed the largest known distillation attack against it.
Moonshot AI’s Kimi K3, released this month, outperforms OpenAI and Anthropic on several benchmarks.