Svmuu News: Michael Kratsios, Director of the White House Office of Science and Technology Policy, stated on Wednesday on X that Moonshot AI used Anthropic’s Fable distillation to develop the K3 model. He stated that Moonshot AI has built an internal platform to perform large-scale distillation of U.S. models and switches between various access methods to evade detection.
Kratsios stated that legitimate AI distillation—used to create smaller, more efficient models—plays a role in an open innovation ecosystem, but large-scale, covert industrial distillation aimed at stealing U.S. proprietary technology and undermining U.S. research is unacceptable.
U.S. Treasury Secretary Scott Bessent previously stated that if it is proven that Chinese companies’ models were trained through improper distillation, the U.S. government may impose sanctions on the relevant companies. In February, Anthropic publicly accused three companies, including Moonshot AI, of using distillation attacks that violated its terms of service.