Treasury warns of sanctions on Chinese AI firms over alleged Anthropic model theft

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Treasury Secretary Scott Bessent has threatened potential U.S. sanctions against Chinese AI companies following accusations from White House officials. The allegations center on Moonshot AI, a Chinese firm accused of distilling Anthropic's Fable model to build its own AI system, Kimi K3. Distillation involves training a smaller model using outputs from a more powerful one, which can raise intellectual property concerns. The accusation marks an escalation in U.S.-China tensions over AI development and the alleged misappropriation of American AI technology.

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