The United States and Saudi Arabia have reached a historic nuclear cooperation agreement. The partnership agreement will be transmitted to the U.S. Congress for review.

The agreement marks a significant step in bilateral relations between the two nations. It outlines the framework for cooperation in the field of nuclear energy.

Details regarding the specific terms of the agreement were not immediately disclosed. The transmission to Congress initiates the formal review process required for such international pacts.

Treasury Secretary Scott Bessent has indicated that the US administration is set to probe alleged intellectual property theft by Chinese artificial intelligence models, warning that foreign models found guilty of stealing from American firms could face sanctions. Bessent clarified on Fox Business’ "Mornings with Maria" that while the government supports open-source models, it does not support IP theft. He used the term "distillation" to describe a method of AI training where a less competent model is developed using outputs from a more advanced model, voicing concern over discovering "watermarks of our US large language models on many of the Chinese models."

Nvidia Corp. CEO Jensen Huang offered a contrasting perspective, stating that American companies should "absolutely" use Chinese AI models. "Distillation, learning from AI, learning from other sources of knowledge, is fundamental to intelligence," Huang told Axios. He argued there is "no scenario where China runs U.S. companies off the road" and suggested that cheap open models expand AI's audience, driving demand for chips and data centers.

The White House escalated the issue hours after Huang's comments. White House science chief Michael Kratsios alleged that Moonshot AI distilled Anthropic’s Fable for the development of its K3 model. Kratsios claimed Moonshot built an internal platform to switch access methods and avoid detection, while also accessing Nvidia GB300 chips in Thailand. Anthropic reportedly traced 3.4 million exchanges with its models to Moonshot, routed through hundreds of fake accounts.

This development comes amid growing tensions over AI between the US and China. Chinese startup Moonshot AI recently launched its Kimi K3 model, which outperformed several top US models on certain industry benchmarks. In June, Anthropic accused Alibaba Group Holdings Ltd and its AI research unit, Qwen, of running a large-scale AI "distillation" campaign to extract capabilities from its Claude models.

The Treasury Secretary confirmed that this issue would be addressed in the near future. As per a Reuters report, the US and China have planned to discuss AI-related issues in September, with Bessent representing the US. The precise location and detailed agenda for the upcoming meeting remain under deliberation by officials from both nations. Meanwhile, Beijing regulators are reportedly considering stricter export controls on AI and semiconductor technologies.