Frank Ricard

To ban/block frontier Chinese open sourced models, you need to stop distillation. The only way to stop distillation, that I can think of, is lock the frontier models down. Security clearance to gain access. Period. We’re already seeing this via recent USG actions against fable. It’s only going to get more intense. If someone else has a better, more comprehensive, solution please lmk

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.

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.

This is more than a heist of invaluable American Intellectual Property. It is an assault on every economy that prizes the entrepreneur, rewards private capital, and relies on fair and honest competition. Lying, cheating, and stealing is not innovation or “win-win”. It’s corrosive to productive economic activity and to the healthy economic development of nations.

„sanctions and Entity List designations will be on the table.“ Yeah, bans on Chinese open source are coming. Pretty sure at this point. If Scott Bessent, who pushed through similar measures against Anthropic, raises this as a possibility, we know where things are headed.

We are in the midst of the biggest technological revolution in modern history. Alphabet, $GOOGL, just raised their full-year 2026 CapEx guidance to up to $205 billion. This annual CapEx budget alone is larger than the market cap of all but 85 companies in the world. The Magnificent 7 will soon spend over $1 trillion in combined annual CapEx. This is a once-in-a-lifetime technological revolution.

What China is doing/has done is exactly what Alexander Hamilton & the US' state-sponsored theft did vis a vis British trade secrets 👇 Not saying it's right, just saying "Stop being naive, start paying attention to history, end post-71 USD reserve status to stop this, & compete"

Well, as it relates to distillation. 1. Anthropic releases Mythos Preview in April 2026 2. Anthropic sends a letter in June 2026 to US officials accusing Alibaba of approximately 30 million exchanges with its model, using thousands of fraudulent accounts. 3. Kimi K-3 is released in July 2026 with similar frontier capabilities. Alibaba holds an approximate 36% stake in Moonshot AI. Quite the coincidence. As it relates to historic patterns of the same strategy, it's not a coincidence that China's industrial system has repeatedly combined 1) acquisition of foreign technology, coercively or illegally, 2) compression of the time and cost required for independent research and development, 3) state-supported financing, procurement, and industrial policy and capacity expansion, and 4) aggressive price competition in domestic and international markets. 2024 USTR concluded that China's tech-transfer practices persisted, that state-supported cyber theft continued, and that these practices cost American companies and consumers billions of dollars. Case examples: 1. Sinovel and American Superconductor case. A federal jury convicted China-based Sinovel of stealing American Superconductor’s wind-turbine control software. 2. Dupont titanium-dioxide technology case. Federal prosecutors proved a conspiracy to transfer DuPont’s proprietary chloride-route titanium-dioxide process to Chinese state-owned companies. 3. DuPont Pioneer and Monsanto seed lines case. A defendant connected to the Chinese agricultural company Dabeinong pleaded guilty in a conspiracy involving the theft of proprietary inbred corn seeds from DuPont Pioneer and Monsanto fields 4. Chinese intelligence targeting GE Aviation. A Chinese Ministry of State Security officer was convicted of attempting to obtain proprietary aviation information from U.S. companies, including GE Aviation. 5. Google. In January 2026, a former Google engineer was convicted of stealing thousands of pages of confidential material concerning AI supercomputing and chip infrastructure while affiliating himself with two Chinese technology ventures. Prosecutors presented evidence that he intended to reproduce or modify Google’s technology for Chinese entities. 6. Motorola Solutions / Hytera Communications. Beginning in 2006, China-based Hytera recruited Motorola engineers and directed them to take Motorola source code and other trade secrets covering digital mobile radio technology. Motorola had developed the technology through years of research and engineering. Hytera pleaded guilty to conspiracy to steal trade secrets. In March 2026, it was fined $50 million and placed on probation. 7. Coca-Cola / Weihai Jinhong Group. Chemist Xiaorong “Shannon” You obtained proprietary formulations for bisphenol-A-free—or BPA-free—coatings used inside beverage and food cans while working at Coca-Cola and Eastman Chemical. You was convicted of economic espionage, possession of stolen trade secrets and related offenses and was sentenced to 14 years in prison. 8. GlaxoSmithKline / Renopharma. Several individuals associated with GlaxoSmithKline transferred confidential pharmaceutical and biotechnology information to Renopharma, a company created to develop drugs in China. The economic value was potentially enormous: the Department of Justice noted that these kinds of products typically cost more than $1 billion each to research and develop. At least four defendants pleaded guilty, while another defendant was convicted 9. GE turbine tech / Chinese firms, universities, and government-linked industrial programs. Xiaoqing Zheng, a longtime GE Power engineer, was convicted of conspiring to steal GE trade secrets involving turbine-sealing technology and other ground-based and aviation turbine technologies. Trial evidence showed that Zheng and collaborators in China intended the information to benefit the People’s Republic of China and Chinese organizations researching, manufacturing and developing turbine components. Zheng was also identified as a participant in China’s Thousand Talents Program. Following a jury conviction, he was sentenced in 2023 to two years in prison. 10. Edwards Lifesciences / Medtronic / Chinese Medical-device company. Engineer Wenfeng Lu stole confidential information and trade secrets from two American medical-device companies that developed products used to treat cardiac and vascular conditions. While still working for the U.S. companies, Lu traveled repeatedly to China, obtained financing and prepared to open a Chinese company that would manufacture vascular-treatment devices using the stolen American technology. He applied for and was selected to receive approximately $328,000 in Chinese government funding, along with three years of free laboratory space in a Chinese technology park. Prosecutors described the program as one designed to attract overseas scientists and intellectual property to develop Chinese biomedical technology. Lu pleaded guilty to six trade-secret offenses and was sentenced to 27 months in prison. He was arrested before departing for China, preventing the proposed venture from being fully implemented. Just to name a few... Appreciate the comment, honestly. A few of these cases I was not familiar with until having AI dig into it and reading up on them. It's broader than I originally anticipated.

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.

Well, as it relates to distillation. 1. Anthropic releases Mythos Preview in April 2026 2. Anthropic sends a letter in June 2026 to US officials accusing Alibaba of approximately 30 million exchanges with its model, using thousands of fraudulent accounts. 3. Kimi K-3 is released in July 2026 with similar frontier capabilities. Alibaba holds an approximate 36% stake in Moonshot AI. Quite the coincidence. As it relates to historic patterns of the same strategy, it's not a coincidence that China's industrial system has repeatedly combined 1) acquisition of foreign technology, coercively or illegally, 2) compression of the time and cost required for independent research and development, 3) state-supported financing, procurement, and industrial policy and capacity expansion, and 4) aggressive price competition in domestic and international markets. 2024 USTR concluded that China's tech-transfer practices persisted, that state-supported cyber theft continued, and that these practices cost American companies and consumers billions of dollars. Case examples: 1. Sinovel and American Superconductor case. A federal jury convicted China-based Sinovel of stealing American Superconductor’s wind-turbine control software. 2. Dupont titanium-dioxide technology case. Federal prosecutors proved a conspiracy to transfer DuPont’s proprietary chloride-route titanium-dioxide process to Chinese state-owned companies. 3. DuPont Pioneer and Monsanto seed lines case. A defendant connected to the Chinese agricultural company Dabeinong pleaded guilty in a conspiracy involving the theft of proprietary inbred corn seeds from DuPont Pioneer and Monsanto fields 4. Chinese intelligence targeting GE Aviation. A Chinese Ministry of State Security officer was convicted of attempting to obtain proprietary aviation information from U.S. companies, including GE Aviation. 5. Google. In January 2026, a former Google engineer was convicted of stealing thousands of pages of confidential material concerning AI supercomputing and chip infrastructure while affiliating himself with two Chinese technology ventures. Prosecutors presented evidence that he intended to reproduce or modify Google’s technology for Chinese entities. 6. Motorola Solutions / Hytera Communications. Beginning in 2006, China-based Hytera recruited Motorola engineers and directed them to take Motorola source code and other trade secrets covering digital mobile radio technology. Motorola had developed the technology through years of research and engineering. Hytera pleaded guilty to conspiracy to steal trade secrets. In March 2026, it was fined $50 million and placed on probation. 7. Coca-Cola / Weihai Jinhong Group. Chemist Xiaorong “Shannon” You obtained proprietary formulations for bisphenol-A-free—or BPA-free—coatings used inside beverage and food cans while working at Coca-Cola and Eastman Chemical. You was convicted of economic espionage, possession of stolen trade secrets and related offenses and was sentenced to 14 years in prison. 8. GlaxoSmithKline / Renopharma. Several individuals associated with GlaxoSmithKline transferred confidential pharmaceutical and biotechnology information to Renopharma, a company created to develop drugs in China. The economic value was potentially enormous: the Department of Justice noted that these kinds of products typically cost more than $1 billion each to research and develop. At least four defendants pleaded guilty, while another defendant was convicted 9. GE turbine tech / Chinese firms, universities, and government-linked industrial programs. Xiaoqing Zheng, a longtime GE Power engineer, was convicted of conspiring to steal GE trade secrets involving turbine-sealing technology and other ground-based and aviation turbine technologies. Trial evidence showed that Zheng and collaborators in China intended the information to benefit the People’s Republic of China and Chinese organizations researching, manufacturing and developing turbine components. Zheng was also identified as a participant in China’s Thousand Talents Program. Following a jury conviction, he was sentenced in 2023 to two years in prison. 10. Edwards Lifesciences / Medtronic / Chinese Medical-device company. Engineer Wenfeng Lu stole confidential information and trade secrets from two American medical-device companies that developed products used to treat cardiac and vascular conditions. While still working for the U.S. companies, Lu traveled repeatedly to China, obtained financing and prepared to open a Chinese company that would manufacture vascular-treatment devices using the stolen American technology. He applied for and was selected to receive approximately $328,000 in Chinese government funding, along with three years of free laboratory space in a Chinese technology park. Prosecutors described the program as one designed to attract overseas scientists and intellectual property to develop Chinese biomedical technology. Lu pleaded guilty to six trade-secret offenses and was sentenced to 27 months in prison. He was arrested before departing for China, preventing the proposed venture from being fully implemented. Just to name a few... Appreciate the comment, honestly. A few of these cases I was not familiar with until having AI dig into it and reading up on them. It's broader than I originally anticipated.

Treasury Sec. Bessent on Fox: “This administration supports open source models, but what we do not support is IP theft. If we see, especially, that overseas models are stealing from our great companies, we have the ability to sanction them because of this theft.”

BREAKING: Nicaragua’s President Daniel Ortega declares the country will no longer hold elections, eliminating any future electoral challenge to his rule.

Treasury Sec. Bessent on Fox: “This administration supports open source models, but what we do not support is IP theft. If we see, especially, that overseas models are stealing from our great companies, we have the ability to sanction them because of this theft.”