- China accused the U.S. of "AI hegemonism" and warned of countermeasures after U.S. officials threatened probes, sanctions and trade limits over alleged technology theft by Chinese AI firms.
- The flashpoint is Moonshot AI's Kimi K3 model—U.S. agencies say it was built via large‑scale "distillation" of Anthropic’s Claude, while Moonshot insists its gains come from original architecture changes.
- U.S. officials say firms could be put on the Commerce Department’s Entity List (cutting off chips, software and cloud access), highlighting a broader debate over distillation, IP and open‑source AI.
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