The U.S. Charges Kimi K3 for Distilling Fable, Dark Side of the Moon Could Face Sanctions

According to Sentinel Beating monitoring, Michael Kratsios, the White House's technology policy chief, accused the dark side of the moon of using Anthropic's Fable for distillation to train Kimi K3. Distillation is using the output of a strong model to train another model. Treasury Secretary Scott Bessent subsequently stated that both sanctions and entity listing are under consideration.

Kratsios stated that the dark side of the moon has built an internal platform that can switch between multiple access channels to evade detection. He also claimed that the dark side of the moon purchased servers equipped with an NVIDIA GB300 and used related chips in Thailand. Kratsios did not provide any public evidence.

In February of this year, Anthropic accused the dark side of the moon of interacting with Claude through hundreds of fake accounts over 3.4 million times, focusing on gaining access to Agent reasoning, tool invocation, programming, and data analysis capabilities. The dark side of the moon did not respond to media requests for comment at the time.

The dark side of the moon has not yet responded to these latest accusations. The Chinese Embassy in the United States stated that the claims are "completely unfounded." The U.S. government has not yet formed a unified plan, with the White House advocating for tighter restrictions while the Commerce Department believes that comprehensive restrictions would be difficult to enforce.