Model Maker

• The White House has accused Chinese startup Moonshot AI of stealing technology from Anthropic to develop its Kimi K3 open-weight model. • Michael Kratsios of the White House Office of Science and Technology Policy stated on Wednesday that evidence shows Moonshot used "covert distillation" of Anthropic's Fable model. • This incident is significant as the Kimi K3 model recently caused volatility in tech stocks and highlights growing tensions over the theft of US AI intellectual property.

• On August 2, 2026, the European Union's landmark AI law will fully enter into force, granting the Commission the authority to fine developers of powerful AI models. • Providers of models classified as having "systemic risk" must adhere to strict mandates, including rigorous stress-testing, security maintenance, and the mitigation of risks to public health and safety. • These regulations shift the AI Act from a set of deadlines to an enforceable legal framework, ensuring that the most influential AI systems are monitored for societal and security impacts.

• The Trump administration has initiated a regulatory crackdown on leading U.S. AI developers, specifically targeting Anthropic's advanced models. • This shift reverses previous government efforts to accelerate AI development by limiting regulatory hurdles for companies like Anthropic and Google. • Experts warn that these restrictions may inadvertently benefit Chinese model makers, allowing them to close the technological gap with the U.S.