US Official Alleges Chinese AI Apps Used Banned Chips

Watch on YouTube ↗  |  July 23, 2026 at 04:44  |  4:29  |  Bloomberg Markets
Speakers
Annabel Droulers — Anchor, Bloomberg TV

Summary

The US alleges Chinese AI startup Moonshot improperly used US large-language models and NVIDIA Blackwell servers to train its Kimi K3 model, raising tensions. The accusations add friction to US-China AI cooperation and could disrupt the planned September Trump-Xi summit on AI governance.

  • White House official Michael Kratsios accused Moonshot of acquiring NVIDIA GB300 servers and conducting large-scale distillation against US AI models.
  • The US Commerce Department is formally investigating whether Chinese models accessed advanced US AI chips.
  • The allegations come as both sides were preparing for an AI dialogue ahead of a Trump-Xi meeting.
  • China has expressed willingness to continue dialogue, but the investigation may undermine goodwill.
  • No substantive evidence has yet been presented, and some analysts question the feasibility of the alleged timeline.
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