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WASHINGTON, July 22 (Reuters) - China's Moonshot AI stole from Anthropic's most sophisticated AI large language model, Fable, to help create its latest K3 release, top White House tech official Michael Kratsios said on Wednesday.
"We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model," he said in a post on X. "Large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable."
In April, the U.S. State Department ordered a global push to bring attention to what it says are widespread efforts by Chinese companies, including Moonshot AI, to steal intellectual property from U.S. artificial intelligence labs, according to a diplomatic cable seen by Reuters.
Distillation is the process of training smaller AI models using output from larger, more expensive ones as part of an effort to lower the costs of training a powerful new AI tool.
Chinese AI startup Moonshot on Friday unveiled Kimi K3, a 2.8 trillion-parameter model that it said is the world's largest open-weight AI system and delivers performance approaching U.S. giant Anthropic's frontier Fable model.
The launch, which comes a month after Anthropic's Fable and Mythos models were abruptly withdrawn by the U.S. government due to security concerns, underscores how quickly China's open AI ecosystem is narrowing the gap with the most advanced U.S. systems.
(Reporting by Bhargav Acharya, writing by Doina Chiacu;Editing by David Ljunggren and Michelle Nichols)
