NVIDIA CorporationHuang argues cheap open models drive demand for Nvidia's chips, and the article notes Kimi K3's release rattled chip stocks, implying potential demand boost.

The White House accused Chinese startup Moonshot AI of covertly distilling Anthropic's Fable model to build its Kimi K3 system, hours after Nvidia CEO Jensen Huang said American companies should 'absolutely' use Chinese AI models and defended distillation as fundamental to intelligence. Treasury Secretary Scott Bessent told Fox Business the administration is finding 'watermarks of our U.S. large language models on many of the Chinese models' and may act within weeks. White House science chief Michael Kratsios alleged Moonshot built an internal platform that switched access methods to avoid detection and accessed Nvidia GB300 chips in Thailand, while Anthropic reportedly traced 3.4 million exchanges with its models to Moonshot through hundreds of fake accounts. Huang argued that cheap open models expand AI's audience and drive demand for Nvidia's chips, adding there is 'zero possibility' China runs U.S. companies off the road. The dispute comes days after Kimi K3's release rattled chip stocks and prompted warnings from David Sacks and Bill Ackman on America's narrowing AI lead.
NVIDIA CorporationHuang argues cheap open models drive demand for Nvidia's chips, and the article notes Kimi K3's release rattled chip stocks, implying potential demand boost.
White House accuses Moonshot of covert distillation and may act within weeks, posing regulatory risk.
Anthropic's Fable model was allegedly distilled by Moonshot, representing IP theft and competitive threat.