# Treasury Threatens Sanctions on Chinese AI as Big Tech Cries Theft > Source: > Published: 2026-07-24 00:31:32+00:00 The Treasury Department is threatening sanctions against [Chinese AI](/tech/chinese-ai-used-banned-chips-to-beat-american-models-white-house-says) startup Moonshot for allegedly # Treasury Threatens Sanctions on Chinese AI as Big Tech Cries Theft Moonshot allegedly distilled Anthropic's model—same technique U.S. labs use freely. Only one side gets called a thief. ## Synthesized from 3 sources This article was synthesized from the reporting of the outlets below. **TechCrunch**[Treasury threatens sanctions after White House claims Moonshot distilled Anthropic's Fable](https://techcrunch.com/2026/07/22/treasury-threatens-sanctions-after-white-house-claims-moonshot-distilled-anthropics-fable/)**The Verge**[China’s Moonshot trained its AI model on a restricted Nvidia chip, White House claims.](https://www.theverge.com/ai-artificial-intelligence/969454/chinas-moonshot-trained-its-ai-model-on-a-restricted-nvidia-chip-white-house-claims)**US News – Latest Breaking Headlines, Photos & Videos | New York Post**[Trump tech official accuses China’s Moonshot AI of ‘large-scale’ plot to steal from Anthropic](https://nypost.com/2026/07/22/business/chinas-moonshot-ai-stole-from-anthropics-fable-to-develop-latest-ai-model-trump-admin/) ## Latest stories Opinion ### Havana Syndrome Whistleblower Gets $650K — You Pay, Nobody's Fired Mark Lenzi was punished for exposing attacks on Americans. Taxpayers fund his $650K settlement. The bureaucrats who retaliated? Still on the payroll. 46m ago Tech & Free Speech ### Google Made Record Revenue, Still Lost Money On AI Spending Alphabet hauled in $119.8 billion and still couldn't cover its datacenter bill. When the AI bubble pops, working Americans will foot the bill. 1h ago Economy ### Trump's Datacenter Pledge Has No Teeth While Your Electric Bill Climbs Nearly 200 entities signed a voluntary promise on datacenter costs — but non-binding means zero enforcement 1h ago Media ### DOJ Retreats on NYT Subpoenas After Judge Hammered Rule-Skipping Prosecutors DOJ skips its own subpoena rules for the press. Ordinary Americans get no such shield. 2h ago ## Related stories Tech & Free Speech ### Chinese AI Used Banned Chips to Beat American Models, White House Says Washington's chip ban failed — now regulators threaten more rules while American innovators get squeezed. 4h ago Tech & Free Speech ### OpenAI's Rogue AI Hacked Hugging Face—While Its Own Guardrails Were Down The lab that built an autonomous cyber-weapon says this proves we need more rules—just not for them. 7h ago Tech & Free Speech ### Google's AI Photo Search Fix Still Funneling Users Into Unwanted AI Google added an off-switch for its broken AI photo search, but Big Tech still controls the default—and uses it to push holdouts into AI they never wanted. 2d ago Media ### Reddit May Cut Off Google — And Expose the Search Monopoly Racket AI search is starving the web of traffic. If Reddit walks, Big Tech's dependency house of cards collapses. 4h ago