Moonshot AI Accused of Stealing Anthropic LLM Tech

China's Moonshot AI is accused of stealing from Anthropic's Fable, a sophisticated large language model. A former US official states this theft helped create Moonshot's K3 release and that Moonshot AI has also acquired advanced Nvidia AI chips. This is described as large-scale, covert industrial distillation aimed at stealing proprietary US technology. The US treasury secretary is considering adding Moonshot AI to a trade blacklist and imposing sanctions. However, a spokesperson for the Chinese embassy in Washington calls these accusations "entirely unfounded," stating that China respects intellectual property protections. This situation could escalate technology tensions between Beijing and Washington.