White House splits over how to counter Moonshot AI's Kimi K3

The White House is wrestling with how to respond to Moonshot AI’s Kimi K3, a powerful, cheaper Chinese model that could threaten US IP, pitting a hardline stance from Treasury Secretary Scott Bessent against a more cautious approach from OSTP Director Michael Kratsios. Commerce remains wary of sweeping moves like placing Moonshot on the Entity List, and interagency coordination is fraying, leaving policy decisions undecided as industry and national-security concerns roil the debate over open-source AI, sanctions, and trade leverage with Beijing.