Technology

White House Official Accuses Chinese AI Startup of Accessing Banned Nvidia Chips

Moonshot AI allegedly distilled Anthropic's model and used restricted hardware, amid broader U.S.-China tech tensions.

Talivio News · Global 22 July 2026, 23:31 1 min read

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Close-up of a hand holding an Nvidia processor chip with a gray background.

A White House official has accused Chinese AI startup Moonshot AI of distilling Anthropic's Fable model and accessing restricted Nvidia chips, according to reports. Michael Kratsios, director of the White House Office of Science and Technology Policy, made the allegation, though initial reports did not name the official.

US Treasury Secretary separately said it is 'unacceptable' that Chinese open source AI models may have been built on intellectual property theft.

Billionaire investor Chamath Palihapitiya commented on the situation, though his full statement was not provided.

Updates

Update — 23 July, 01:13

White House Office of Science and Technology Policy director Michael Kratsios officially identified Moonshot AI as the entity under scrutiny this Wednesday. Furthermore, reports indicate that the company utilized the distilled model to develop its new Kimi AI platform.

Update — 23 July, 04:43

White House Office of Science and Technology Policy director Michael Kratsios officially accused Moonshot AI on Wednesday of violating export control rules and terms of service to build its products. Officials stated that the startup used distilled Anthropic technology to develop its new Kimi model. Furthermore, authorities warned that any Chinese firms engaging in covert, industrial-scale AI distillation may face upcoming sanctions and export restrictions.

Update — 23 July, 11:26

Moonshot AI's new Kimi K3 model is allegedly built using technology distilled from Anthropic, according to reports identifying the K3 as the product of this unauthorized process. Officials further claim that the startup bypassed export controls by accessing restricted Nvidia GB300 chips in Thailand. Additionally, Anthropic and OpenAI have formally accused Chinese AI firms of engaging in large-scale model distillation.

Devin Okonkwo

Technology Correspondent · Talivio News

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