Treasury threatens sanctions after White House claims Moonshot distilled Anthropic fable | TechCrunch0

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• July 22, 2026

US Treasury Secretary Scott Bessent doubled down on his warnings to Chinese AI companies on Wednesday, saying sanctions remain on the table after a White House official accused Moonshot of improperly distilling Anthropic’s Fable model. Model distillation is a common AI training technique in which a smaller model learns from the results of a larger