It became the center of a distillation dispute in mid-2026 after Anthropic, and separately the White House's OSTP, accused Moonshot AI of training Kimi K3 partly on outputs from Anthropic's Fable 5 using export-restricted Nvidia chips — an allegation Moonshot disputed. Kimi K3 is widely used as a cost-competitive open-weight alternative to closed frontier models for coding and agentic tasks.