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On 2026-07-22 Director Michael Kratsios stated that Moonshot AI distilled…

2026-07-22 · 15:06 UTC ·@samhogan ·1 min read

Brief

Director Michael Kratsios tweeted on July 22, 2026 that Moonshot AI distilled Anthropic’s Fable to build its K3 model, employing a sophisticated platform to perform large-scale, covert distillation against U.S. models and to switch access methods to avoid detection; he added Moonshot acquired and accessed GB300-equipped servers in Thailand and warned that industrial-scale theft of U.S. proprietary AI technology is unacceptable while supporting legitimate distillation.

Why it matters

On 2026-07-22 Director Michael Kratsios stated that Moonshot AI distilled Anthropic’s Fable to develop its K3 model, using a sophisticated internal platform to run large-scale distillation against U.S. models and rapidly switch between multiple access methods to avoid detection.

Key details

  • Kratsios said Moonshot AI acquired GB300-equipped servers and accessed GB300s in Thailand, which the director asserted were likely used to train its AI models.
  • Kratsios affirmed U.S. support for a competitive, open AI ecosystem and legitimate distillation, but declared that large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology is unacceptable.
Source evidence

😊

Director Michael Kratsios (@mkratsios47)

We have information that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model.

To do this they developed a sophisticated internal platform to conduct large scale distillation against U.S. models, allowing them to quickly switch between multiple methods of access to avoid detection. Moonshot AI has also acquired GB300-equipped servers and has accessed GB300s in Thailand, likely to train its AI models.
 
The United States strongly supports the free and fair development of AI, including a thriving competitive ecosystem that spans frontier models, specialized systems, open-source frameworks, and open-weight models. Legitimate AI distillation used to create smaller, more efficient models plays a vital role in this open innovation ecosystem. However, large-scale, covert industrial distillation aimed at stealing proprietary U.S. technology and undermining American research is unacceptable.

— https://nitter.net/mkratsios47/status/2079933645888880708#m