The White House has accused Chinese AI startup Moonshot AI of improperly using Nvidia chips and US-developed artificial intelligence models to build Kimi K3, which the company calls the world's largest open-weight model. The model reportedly has 2.8 trillion parameters — likely making it the biggest openly available AI system ever created.
The accusation
In a statement released Tuesday, the White House said Moonshot AI's actions violate US export controls and intellectual property protections. The administration did not provide specific evidence but claimed the company circumvented restrictions on advanced semiconductors and AI software. Nvidia chips, particularly those designed for high-performance computing, are subject to strict US export rules aimed at limiting China's access to cutting-edge technology.
The White House also alleged that Moonshot AI used US AI models without authorization to train Kimi K3. The company has not publicly responded to the accusations. The administration said it is reviewing options, including potential sanctions or further export restrictions.
What is Kimi K3?
Moonshot AI unveiled Kimi K3 earlier this month, describing it as an open-weight model with 2.8 trillion parameters. That dwarfs most other open models — Meta's Llama 3.1, for example, tops out at 405 billion parameters. Open-weight means the model's trained parameters are publicly released, allowing developers to run it on their own hardware. But the sheer size of Kimi K3 raises questions about the computing power needed to train and deploy it.
The company has not disclosed where or how it trained the model. The White House's accusation suggests US-made chips and software played a role.
Why the chips matter
Nvidia's high-end AI chips, such as the H100 and A100, are banned for export to China under US national security rules. The White House claims that Moonshot AI obtained these chips through intermediaries or other means. If true, it would represent a significant breach of export controls. The US has been tightening these rules for years, aiming to slow China's progress in artificial intelligence.
The accusation also highlights the challenge of enforcing those rules. Companies can route chips through third countries or use shell companies. The White House did not name any intermediaries in its statement.
What happens next
The White House said it is working with the Commerce Department to investigate the matter. Possible actions include adding Moonshot AI to the Entity List, which would restrict its access to US technology, or imposing fines. The administration also called on allies to tighten their own export controls.
Moonshot AI has not issued a statement. The company's website still promotes Kimi K3 as open and accessible. Whether the White House can prove its claims — and what consequences follow — remains an open question.
