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# Treasury threatens sanctions after White House claims Moonshot distilled Anthropic’s Fable

**[TechCrunch](https://daily.dev/sources/tc)** · 2 min read · 0 upvotes · 0 comments

## Summary

U.S. Treasury Secretary Scott Bessent reiterated threats of sanctions against Chinese AI companies after White House officials accused Moonshot of illegally distilling Anthropic's Fable model to build Kimi K3. The accusations also include allegations that Moonshot accessed Nvidia GB300 servers banned from Chinese companies, potentially violating U.S. export controls. Some experts question whether Kimi K3 could have been built primarily through distillation from Fable, given the model's limited public availability. The episode has sparked broader debate in Washington about restricting Chinese open-weight AI models on national security grounds.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcrunch.com/2026/07/22/treasury-threatens-sanctions-after-white-house-claims-moonshot-distilled-anthropics-fable>

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Tags: [#open-source](https://daily.dev/tags/open-source), [#anthropic](https://daily.dev/tags/anthropic), [#ai-regulation](https://daily.dev/tags/ai-regulation)

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