Updated
Updated · TechCrunch · Jul 23
Experts Doubt Moonshot Built Kimi K3 by Distilling Fable, as US Alleges GB300 Chip Use
Updated
Updated · TechCrunch · Jul 23

Experts Doubt Moonshot Built Kimi K3 by Distilling Fable, as US Alleges GB300 Chip Use

3 articles · Updated · TechCrunch · Jul 23

Summary

  • AI researchers said Moonshot’s Kimi K3 likely could not have been built mainly by distilling Anthropic’s Fable, arguing the model was released too quickly after Fable’s July 1 debut.
  • Braden Hancock and Nathan Lambert said supervised fine-tuning alone would not explain K3’s strength, and that matching Fable-like capabilities would more likely require reinforcement learning and far larger infrastructure.
  • Michael Kratsios, the White House science adviser, accused Moonshot of covertly copying U.S. models and using Nvidia Grace Blackwell 300 chips or GB300-equipped servers in Thailand, but offered no supporting evidence.
  • Anthropic had already accused Moonshot, DeepSeek and MiniMax of capability extraction earlier this year, saying it found millions of suspicious exchanges, though distillation remains common across the AI industry.
  • The chip allegation points to a broader enforcement gap: banned Nvidia hardware can still reach China through black markets, and proposed U.S. know-your-customer rules for data centers have stalled.

Insights

Did a Chinese startup truly steal a top US AI model, or did its engineers simply out-innovate their American rivals?
With a thriving black market for AI chips, are America's tech export controls on China ultimately destined to fail?