Treasury threatens sanctions after White House claims Moonshot distilled Anthropic’s Fable

U.S. Treasury Secretary Scott Bessent reiterated threats of sanctions and Entity List designations against Chinese AI companies after a White House official accused Moonshot of conducting industrial-scale distillation of Anthropic’s Fable model. Michael Kratsios, the White House science and technology policy chief, also alleged that Moonshot potentially violated U.S. export controls by accessing banned Nvidia GB300 servers. While model distillation is a common practice, the incident highlights escalating tensions in Washington over intellectual property theft, export compliance, and the security implications of Chinese open-weight models.

(Source：TechCrunch)