Top US tech official says China Moonshot AI stole from US Fable

Top Trump administration tech official Michael Kratsios claimed

China's Moonshot AI stole from Anthropic's most sophisticated AI large

language model Fable, to help create its latest K3 release

and has acquired advanced Nvidia AI chips.

Kratsios said, " Large scale, covert industrial distillation aimed at stealing

proprietary US technology and undermining American research is unacceptable."

US Treasury Secretary Scott Bessent said on Wednesday in a post on X

that he was considering adding Moonshot AI

to a trade blacklist and imposing sanctions.

Spokesperson Liu Chang of the Chinese embassy in Washington

called Kratsios' comments entirely unfounded,

adding that China respects intellectual property protections.

"Relevant individuals in the United States should respect the facts,

discard prejudice and stop smearing and discrediting China's

achievements in the development of its artificial intelligence

industry," he said.