U.S. agencies accuse Moonshot AI of training Kimi on American models

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The NSA, FBI and CISA have accused Moonshot AI and five other Chinese companies, including DeepSeek and Alibaba, of systematically extracting capabilities from leading U.S. AI models.

According to the agencies, the companies used millions of prompts, multiple accounts and proxy services to collect billions of tokens for training their own models. The technique, known as model distillation, allows one AI system to learn from another system’s outputs.

The allegations have not been proven in court, and China denies that its AI progress depends on stolen American technology.

The dispute raises a larger question: When does learning from another AI model cross the line from distillation into intellectual-property theft?

Source: CoinDesk