- Treasury Secretary Scott Bessent warned the US could sanction Chinese AI firms if probes find they “stole” IP via techniques like “distillation,” saying the administration supports open source but not theft.
- Chinese firm Moonshot AI’s Kimi K3 — a high-performing open-weight model due to release full weights July 27 — is at the center of accusations after US model watermarks were reportedly found.
- The situation has sparked a heated industry debate: clamp down on alleged IP theft and protect proprietary models, or preserve open-source competition that some argue prevents an AI duopoly.
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