As AI grows more powerful, a U.S.-China feud threatens safety efforts - BNN Bloomberg

U.S. threats to sanction Chinese AI developers over alleged intellectual property theft and export-control violations risk unraveling efforts to establish a bilateral dialog on AI safety, analysts say, just as increasingly powerful models raise concerns over serious security breaches. U.S. officials on Wednesday accused Chinese AI lab Moonshot of distilling its Kimi K3 model from Anthropic’s advanced Fable 5 model, prompting Treasury Secretary Scott Bessent to warn of potential sanctions. Distillation is the process of training AI models using output from more advanced ones to lower the cost…