The White House says Moonshot AI stole Anthropic's Fable to build Kimi K3 and Treasury is threatening sanctions
The White House has accused Chinese AI startup Moonshot AI of covertly distilling Anthropic's Fable model at industrial scale to build Kimi K3, its benchmark-topping coding model released July 17. Treasury Secretary Scott Bessent has confirmed sanctions remain on the table. Moonshot denies wrongdoing, and independent experts question whether the 16-day window between Fable's public launch and K3's release is plausible for distillation at scale.