“We have information that Moonshot distilled Fable for the development of K3”
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US official alleges Moonshot AI distilled Anthropic's Fable model for its K3.
Director Michael Kratsios (WHOSTP) states the US has information that Moonshot AI used a sophisticated internal platform to conduct large-scale distillation of Anthropic's Fable model for developing K3, switching access methods to avoid detection. Moonshot also acquired GB300-equipped servers and accessed GB300s in Thailand. Kratsios condemns covert industrial distillation that steals proprietary US technology, while supporting legitimate AI distillation for smaller, efficient models.
What commenters are saying
Many commenters criticize the US stance as hypocritical, noting AI labs trained on the entire internet without permission, so they have little standing to complain about distillation. Some question the feasibility of distilling Fable within a month of its release, speculating distillation was a small final training step or that prior Opus use continued. Others argue distillation is inevitable and should be embraced. A few accuse the administration of lying or posturing.