In the past six weeks, America’s most protected artificial-intelligence model, Anthropic’s Fable 5, was jailbroken on release, temporarily switched off by a letter from the Trump administration, and dethroned on leader boards by a Chinese model, Kimi K3. Moonshot AI, K3’s maker, released the powerful model in mid-July; K3’s “weights”—the trillions of numbers that store everything it knows—will be released by July 27.Treasury Secretary Scott Bessent warned that sanctions and trade-limiting entity-list designations are on the table.The White House on Wednesday alleged that Moonshot used responses from Fable to help train K3 in a process called model distillation. If the...