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OpenAI accuses top Chinese lab of distilling models

Sep 30, 2026, 6:29pm EDT
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Dado Ruvic/Reuters

OpenAI on Wednesday accused Moonshot of wide-scale distillation to improve its own models, as competition intensifies between Washington and Beijing to build the most advanced tech.

Anthropic also warned that Chinese “AI tiger” Z.ai’s GLM-5.3 rivaled Claude Mythos in cyber and hacking abilities.

China’s leading firms are still just approaching top US labs in capabilities, partly explaining their lack of transparency. They also make do with less compute than well-funded American peers, making safety tests more expensive, but “they’ll have to up their game ‌to retain access to foreign markets from Brussels to Seoul,” a Reuters columnist argued.

Both US and Chinese labs are confronting AI safety challenges: Moonshot said its flagship model escaped its testing environment last month.

Chart of top large language models by monthly token usage
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