{"id":822995,"date":"2026-07-24T12:08:30","date_gmt":"2026-07-24T12:08:30","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/822995\/"},"modified":"2026-07-24T12:08:30","modified_gmt":"2026-07-24T12:08:30","slug":"chinas-moonshot-ai-accessed-banned-nvidia-chips-u-s-official-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/822995\/","title":{"rendered":"China&#8217;s Moonshot AI accessed banned Nvidia chips, U.S. official says"},"content":{"rendered":"<p>A White House official has accused Chinese AI company Moonshot of accessing <a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\" rel=\"nofollow noopener\" target=\"_blank\">Nvidia<\/a>&#8216;s advanced chips, despite export controls banning them from doing so. <\/p>\n<p>Moonshot <a href=\"https:\/\/www.cnbc.com\/2026\/07\/17\/moonshot-ai-kimi-k3-model-openai-anthropic-china.html\" rel=\"nofollow noopener\" target=\"_blank\">unveiled Kimi K3<\/a> on Friday. It closes the performance gap with frontier models including Anthropic&#8217;s Fable 5 and OpenAI&#8217;s GPT 5.6 Sol, even surpassing them on some benchmarks. It&#8217;s the largest open source model so far, with 2.8 trillion parameters, referring to the size of its neural network.<\/p>\n<p>The Chinese company &#8220;acquired GB300-equipped servers and has accessed GB300s in Thailand, likely to train its AI models,&#8221; Michael Kratsios, director of the White House Office of Science and Technology Policy, said in a post on X on Wednesday. <\/p>\n<p>Nvidia, Moonshot AI, the White House and the U.K. embassy of the People&#8217;s Republic of China have been approached for comment. <\/p>\n<p>Nvidia&#8217;s most advanced AI chips are under export restrictions to China, though some less capable semiconductors are allowed to be shipped to the country. Nvidia&#8217;s GB300 chips are one generation behind its frontier Vera Rubin systems and are still considered cutting edge.<\/p>\n<p><a id=\"headline0\"\/>The U.S.-China AI arms race<\/p>\n<p>The release came as the race for AI supremacy between the U.S. and China intensifies. Alongside limiting access to crucial AI hardware, lawmakers in America are also considering how to <a href=\"https:\/\/www.cnbc.com\/2026\/07\/08\/chinese-ai-models-probe-us-lawmakers.html\" rel=\"nofollow noopener\" target=\"_blank\">curb the growing adoption<\/a> of Chinese AI models by Western companies. <\/p>\n<p>ByteDance was reportedly assembling computing power outside of China as it looked to boost AI efforts, according to a Wall Street Journal <a href=\"https:\/\/www.wsj.com\/tech\/chinas-bytedance-gets-access-to-top-nvidia-ai-chips-d68bce3a\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a> in March. ByteDance has been approached for comment.<\/p>\n<p>The U.S. is looking to close export control loopholes that allow advanced AI chips to be accessed by Chinese companies. <\/p>\n<p>The Remote Access Security Act (RASA), a proposed bipartisan legislation, seeks to expand U.S. export controls to include the remote cloud-based access of critical hardware and software. It passed the House of Representatives in January and is awaiting action in the Senate.<\/p>\n<p><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/07\/108338360-17847115511784711548-47317122851-1080pnbcnews.jpg\" alt=\"Chinese startup Moonshot AI unveils new model, closing performance gap with U.S. rivals\"\/><\/p>\n<p>&#8220;It is well known that China is using American compute both within the country and abroad,&#8221; said Keegan McBride, director of science and technology at think tank the Tony Blair Institute for Global Change.<\/p>\n<p>&#8220;It demonstrates just how far ahead the US is on compute,&#8221; he added. &#8220;American compute is the foundation for the AI race today.&#8221;<\/p>\n<p>While the U.S. <a href=\"https:\/\/www.cnbc.com\/2026\/07\/14\/nvidia-h200-ai-chips-china.html\" rel=\"nofollow noopener\" target=\"_blank\">reportedly cleared 10 Chinese firms<\/a> to buy Nvidia&#8217;s H200 chips in May, earlier this month a top U.S. trade official said <a href=\"https:\/\/www.cnbc.com\/2026\/07\/14\/nvidia-h200-ai-chips-china.html\" rel=\"nofollow noopener\" target=\"_blank\">&#8220;very few&#8221;<\/a> had been shipped to China and Hong Kong. With access to the leading AI chips severely limited, Chinese tech companies have increasingly sought <a href=\"https:\/\/www.cnbc.com\/2025\/12\/17\/metax-moore-threads-chinese-rivals-nvidia-ai-chips.html\" rel=\"nofollow noopener\" target=\"_blank\">homegrown alternatives.<\/a> <\/p>\n<p>White House official Kratsios also said &#8220;we have information that Moonshot AI distilled Anthropic&#8217;s Fable for the development of its K3 model,&#8221; echoing Anthropic&#8217;s claims earlier this year of <a href=\"https:\/\/www.cnbc.com\/2026\/02\/24\/anthropic-openai-china-firms-distillation-deepseek.html\" rel=\"nofollow noopener\" target=\"_blank\">&#8220;industrial-scale&#8221;<\/a> campaigns to extract information from its model.<\/p>\n<p>Through distillation, smaller AI models can mimic the performance of larger, pre-trained models by\u00a0<a href=\"https:\/\/www.cnbc.com\/2025\/02\/21\/deepseek-trained-ai-model-using-distillation-now-a-disruptive-force.html\" rel=\"nofollow noopener\" target=\"_blank\">extracting knowledge from the better-trained model<\/a>.<\/p>\n<p>A spokesperson for the U.K. embassy of the People&#8217;s Republic of China <a href=\"https:\/\/www.cnbc.com\/2026\/07\/08\/chinese-ai-models-probe-us-lawmakers.html\" rel=\"nofollow noopener\" target=\"_blank\">previously told CNBC<\/a> that the country &#8220;opposes baseless allegations and malicious smears against its AI development.&#8221;<\/p>\n<p>Treasury Secretary Scott Bessent threatened sanctions on Chinese companies that commit distillation attacks on Wednesday.<\/p>\n<p>&#8220;When PRC firms conduct covert, industrial-scale distillation attacks that cross the line into IP theft, sanctions and Entity List designations will be on the table,&#8221; he said in a post on X.<\/p>\n<p><a href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.cnbc.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"A White House official has accused Chinese AI company Moonshot of accessing Nvidia&#8216;s advanced chips, despite export controls&hellip;\n","protected":false},"author":2,"featured_media":822996,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,4615,2158,161,49,48,95,277248,189646,1369,714,61,772],"class_list":["post-822995","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-breaking-news-politics","tag-breaking-news-technology","tag-business-news","tag-ca","tag-canada","tag-china","tag-direxion-daily-semiconductor-bear-3x-shares","tag-ishares-semiconductor-etf","tag-nvidia-corp","tag-politics","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/822995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=822995"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/822995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/822996"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=822995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=822995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=822995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}