This is one of the craziest headlines you'll read all year. The US government has suspended the use of Claude Fable 5 & Mythos 5. My thoughts on the ramifications: - There is a strong motive to overturn the ban, as the ramifications for equities are significant. Trillions of dollars of data centers/contracts rely on the AI trade - free markets don't like intervention. - Raises concerns over favoritism, clearly favors competitors - this likely buys OpenAI/Google more time. - Sets a worrying precedent in terms of control (regulation is important, but I can't help but feel the best models will be controlled by governments and big corporations - they're afraid of the little guy having too much power). - Open-source models are going to accelerate and drive cost down (there is growing demand) - meanwhile, frontier models are only getting more costly. Has fascinating knock-on effects for the AI trade. - A reminder that if you don't own your own models/compute, you're trading sovereignty for convenience. Local models will become a massive trend.(Miles Deutscher)