China's Moonshot AI stole from Anthropic, Trump tech adviser says

Here is a story making headlines in the economy: China's Moonshot AI stole from Anthropic, Trump tech advisor saysImage source, Future Publishing via Getty ImagesImage caption, Kimi K3 is an AI model developed by Beijing-based Moonshot AI ByOsmond ChiaBusiness reporterPublishedJust nowA White House advisor has accused China's Moonshot AI of a "large scale" effort to steal the capabilities of top US artificial intelligence (AI) models. US President Donald Trump's Science and Technology advisor Michael Kratsios said Moonshot AI carried out the campaign through what is known as distillation - when a weaker AI model extracts answers from a stronger one. Moonshot also gained access to restricted cutting-edge Nvidia servers to train its models, Kratsios said in a social post, external on Wednesday.

The has contacted Moonshot, Anthropic, the White House and Nvidia for comment. Kratsios said on X that the US government has information that Moonshot AI "distilled" capabilities from Anthropic's Fable AI for the development of its K3 model. Kimi K3 gained attention around the world after it was unveiled last week, with many believing it to have narrowed the gap between Western and Chinese AI models.

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Moonshot said its K3 model is able to rival top US technology. Kratsios' allegations come just a day after Treasury Secretary Scott Bessent said the US would examine whether Chinese AI models have stolen the capabilities from American rivals. "We've seen a lot of talk about open-source models coming and threatening the large language models in the US," Bessent told Fox Business on Tuesday.

"If we see, especially, that overseas models are stealing from our great companies, we have the ability to sanction them," he added. The increased scrutiny by the US of Chinese AI companies also comes as Trump is expected to meet his Chinese counterpart Xi Jinping in September.

Economists are analysing what the news means for the markets.