The article discusses allegations by U.S. officials that Moonshot, the Chinese company behind Kimi K3, may have copied Anthropic’s Fable LLM to develop its model. White House science advisor Michael Kratsios claimed covert industrial distillation of U.S. technology was used, but experts like Braden Hancock and Nathan Lambert argue this is unlikely given the timeline and complexity. They emphasize that advanced capabilities in Kimi K3 likely stem from reinforcement learning rather than simple distillation. The piece also highlights concerns over export-controlled Nvidia chips being accessed by Moonshot via black markets, with calls for stricter data center regulations. While distillation is common in AI development, experts stress that China’s progress isn’t solely reliant on U.S. models, citing the technical expertise of Chinese teams. The debate underscores tensions between technological competition and ethical concerns over IP theft in AI innovation.