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US Flags Chinese AI Theft Ahead of Moonshot Open-Source Release

7/23/2026

Summary

Story summary

White House Michael Kratsios said Moonshot AI stole U.S. AI capabilities by distilling models on Nvidia Grace Blackwell servers.
Treasury Secretary Scott Bessent announced a U.S. review of Chinese AI models for stolen technology, warning that sanctions could follow.
Moonshot AI will open-source its Kimi K3 model on 27 July, a large model freely downloadable.
Anthropic accused Alibaba of illicitly extracting Claude AI via distillation and urged Congress to act.

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Story summary

White House Michael Kratsios said Moonshot AI stole U.S. AI capabilities by distilling models on Nvidia Grace Blackwell servers.
Treasury Secretary Scott Bessent announced a U.S. review of Chinese AI models for stolen technology, warning that sanctions could follow.
Moonshot AI will open-source its Kimi K3 model on 27 July, a large model freely downloadable.
Anthropic accused Alibaba of illicitly extracting Claude AI via distillation and urged Congress to act.