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

Treasury Secretary Scott Bessent has warned that the U.S. government may impose sanctions on Chinese AI companies following White House allegations that Moonshot improperly used Anthropic's Fable model to create their Kimi K3 system. The threat represents an escalation in tensions over intellectual property theft and competitive practices in the artificial intelligence sector between the U.S. and China.