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

Treasury Secretary Scott Bessent warned the U.S. government could sanction Chinese AI companies after White House officials accused Moonshot of distilling Anthropic’s Fable model to develop Kimi K3.

New open-weight AI from China is toppling the best of OpenAI and Claude Fable

Moonshot’s 2.8-trillion-parameter Kimi K3 comes close to Fable 5 and GPT 5.6 Sol in several benchmarks, while remaining open weight.

Moonshot’s upcoming Kimi 3 is expected to close the gap with Anthropic’s Opus 4.8

The FT reports Kimi K3 will be the largest open AI model from China, with a parameter count between 2 trillion and 3 trillion.