China ‘threatens’ US over investigation after US government accused Kimi K3 AI model maker Moonshot AI of ‘stealing’ Anthropic’s Fable model

China’s Commerce Ministry has warned of countermeasures after American officials threatened sanctions and trade restrictions against Chinese artificial intelligence (AI) companies over intellectual property (IP) theft allegations. Beijing’s response follows accusations from Washington that Beijing-based AI startup Moonshot AI illegally “distilled” Anthropic’s advanced Claude Fable 5 model to create its newly released Kimi K3 system.

Accusing Washington of “AI hegemonism”, China’s ministry pushed back, stating that the US is threatening Chinese tech companies without factual or legal grounds, as per a report by news agency Reuters.