News & Updates
The latest news and updates from companies in the WLTH portfolio.
EchoStar's Spectrum Sales And New SpaceX Stake Reframe Investment Story
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. * EchoStar (NasdaqGS:SATS) has received FCC approval for major spectrum sales to SpaceX and AT&T. * The transactions include cash proceeds and a sizeable equity stake in SpaceX as part of the consideration. * Completion of these deals coincides with SpaceX's historic IPO, which now directly influences EchoStar's asset mix and valuation drivers. EchoStar's stock, NasdaqGS:SATS, closed at $114.08, with very large gains over the past year and past three years, and a strong move over five years. More recently, the shares are down 1.9% over the past week and down 16.9% over the past month, while still up 1.7% year to date, underscoring how quickly sentiment can swing around big corporate changes. The newly confirmed spectrum deals and exposure to a freshly listed SpaceX give EchoStar a different risk and opportunity profile than it had even a few months ago. As you assess the stock, the key questions now center on how management deploys cash from asset sales, how it handles debt, and how it communicates the role of the SpaceX stake in the overall investment story. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. We've flagged 0 risks for EchoStar. See which could impact your investment. Quick Assessment * ✅ Price vs Analyst Target: At US$114.08, the stock trades about 17% below the US$137.60 analyst target. * ⚖️ Simply Wall St Valuation: Shares are described as trading close to estimated fair value. * ❌ Recent Momentum: The stock has fallen 16.9% over the last 30 days. There's only one way to know the right time to buy, sell or hold EchoStar. Head to Simply Wall St's company report for the latest analysis of EchoStar's Fair Value. Key Considerations * 📊 FCC approval and deal completion shift EchoStar toward more cash and a SpaceX equity stake, which now sit alongside its core pay TV operations. * 📊 It may be useful to monitor how management allocates sale proceeds, updates guidance, and discusses the SpaceX holding in future filings and calls. * ⚠️ The recent 30 day share price decline and new reliance on another listed company can introduce extra sensitivity to sentiment and execution around this pivot. Dig Deeper For the full picture including more risks and rewards, check out the complete EchoStar analysis. Alternatively, you can check out the community page for EchoStar to see how other investors believe this latest news will impact the company's narrative.
U.S. Halts Foreign Access To Anthropic's Fable 5 And Mythos 5 AI Models Over National Security | Chiang Rai Times
WASHINGTON, D.C. - The U.S. Department of Commerce has officially ordered the artificial intelligence company Anthropic to suspend access to its most advanced models. This sweeping restriction blocks all foreign nationals from using the newly released Fable 5 and Mythos 5 systems. The federal government cited urgent national security concerns regarding the powerful capabilities of these next-generation AI tools. Key Takeaways * The U.S. Department of Commerce abruptly banned foreign nationals from accessing Anthropic's Fable 5 and Mythos 5 AI models. * Commerce Secretary Howard Lutnick issued the export control directive over potential cybersecurity vulnerabilities and national security risks. * Anthropic temporarily disabled the models for all users, calling the situation a misunderstanding while working to restore access. National Security Prompts Unprecedented Export Controls The unprecedented export control directive specifically targets foreign nationals, both inside and outside the United States. Furthermore, this broad restriction even applies to non-U.S. citizens currently employed directly by Anthropic at their headquarters. To ensure full compliance with the federal law, the company had to abruptly disable the models for all customers globally. U.S. Commerce Secretary Howard Lutnick personally delivered the sudden directive in a detailed letter to Anthropic Chief Executive Officer Dario Amodei. According to official reports, the government strongly believes these highly advanced systems present a significant risk if accessed by foreign adversaries. This unprecedented action marks a major escalation in federal efforts to strictly regulate the global distribution of American artificial intelligence technology. Anthropic leadership swiftly responded to the government directive, expressing clear disagreement with the sudden and sweeping regulatory intervention. In a public statement, the company explained that they firmly believe the chaotic situation stems from a fundamental misunderstanding. Consequently, Anthropic engineers and legal teams are working closely with federal officials to restore service for all customers as quickly as possible. Company representatives maintain that the underlying issue relates to a narrow method of bypassing the AI's built-in safety guardrails. They argue that this minor "jailbreak" vulnerability is actually present in many other widely available AI models across the entire tech industry. Therefore, Anthropic insists that completely shutting down access to a commercial product is a drastic, disproportionate, and largely unnecessary regulatory measure. Jailbreaking Concerns and Cybersecurity Risks The core of the government's concern reportedly centers around the potential misuse of Fable 5 and Mythos 5 for devastating cyberattacks. Fable 5, introduced just days before the federal ban, is a powerful model uniquely capable of identifying complex software vulnerabilities. Meanwhile, Mythos 5 is an unrestricted version originally designed specifically for trusted cybersecurity researchers and advanced life sciences professionals. Federal officials openly worry that malicious actors could easily exploit these specific capabilities to bypass traditional digital defenses and access sensitive data. By using a specific jailbreaking technique, a sophisticated hacker might successfully force the AI to write malicious code or uncover critical system flaws. Consequently, the Commerce Department ultimately decided that allowing foreign access to these tools posed an unacceptable and immediate risk to national infrastructure. Interestingly, this sudden government restriction arrives during a period of intense public scrutiny over the rapid development of artificial intelligence. Just weeks earlier, the Department of Commerce asked leading AI developers to voluntarily submit their most capable models for thorough government review. The federal government essentially wants to conduct rigorous cybersecurity testing on these advanced systems before they are released to the general public. However, the mandatory export control placed on Anthropic signals a clear shift from voluntary industry cooperation to strict, uncompromising legal enforcement. The current administration has increasingly viewed advanced AI models as critical national security assets that require intense safeguarding from foreign adversaries. As a result, national policymakers are actively seeking stronger regulatory frameworks to effectively manage the complex dual-use nature of these powerful digital tools. The Evolution of the Fable and Mythos Models Anthropic recently celebrated a major technological milestone with the highly anticipated public launch of the powerful Fable 5 AI system. This impressive release represented the company's first general deployment of a model belonging to the highly advanced and exclusive Mythos class. Fable 5 consistently outperformed its predecessors across complex benchmarks in advanced software engineering, detailed scientific research, and long-context analytical tasks. While Fable 5 included strict safety classifiers, Mythos 5 operated with some of those specific constraints intentionally and carefully removed. Anthropic strictly limited Mythos 5 access to a vetted group of trusted organizations through a specialized initiative formally known as Project Glasswing. The company initially designed these powerful digital tools to accelerate positive scientific breakthroughs in critical fields like modern drug discovery and molecular biology. The abrupt shutdown of these models has severely disrupted ongoing, critical projects for countless global businesses and independent researchers worldwide. Many enterprise customers rely heavily on Anthropic's advanced AI to intelligently automate complex workflows and manage massive operational datasets efficiently. Because the company disabled the models universally to comply with the directive, even domestic American users are currently experiencing significant operational setbacks. Furthermore, the restriction perfectly highlights the growing global friction between rapid technological advancement and cautious, restrictive national government oversight. European officials have already noted that this sudden blockade strongly underscores the pressing need for independent technological sovereignty outside the United States. Consequently, international companies may quickly begin exploring alternative AI solutions developed by foreign competitors to entirely avoid similar future disruptions. Navigating the Complexities of Export Controls Historically, the United States government utilized strict export controls primarily to restrict the international sale of physical semiconductor chips and computer hardware. Applying these restrictive federal regulations directly to intangible artificial intelligence software models represents a novel and highly controversial regulatory approach. Legal experts strongly suggest that clearly defining the exact boundaries of these digital export controls will remain a complex and ongoing legal challenge. Anthropic previously advocated openly for stronger government oversight and transparent statutory processes to actively manage catastrophic risks associated with artificial intelligence. However, the company firmly argues that the current government directive completely lacks transparency and fails to reflect fair, evidence-based regulatory practices. The global tech industry is now aggressively demanding clearer regulatory guidelines from the Commerce Department to ensure predictable and highly stable business operations. The sudden suspension of Anthropic's flagship software products has sent immediate, widespread shockwaves throughout the entire global artificial intelligence sector. Competitors and international investors are closely watching how this intense regulatory battle will impact the broader technology market in the coming months. Many industry experts genuinely fear that excessive federal government intervention could severely stifle technological innovation and heavily harm the competitiveness of American AI companies. Despite these significant regulatory challenges, Anthropic remains deeply committed to resolving the ongoing dispute and safely deploying its advanced technology eventually. The company heavily continues to invest massive resources in safety research and defensive mechanisms to effectively prevent the potential misuse of its systems. Ultimately, the final resolution of this unprecedented legal conflict will likely set a major, lasting precedent for how the government regulates artificial intelligence.
Anthropic shuts down Mythos access after sweeping U.S. order
Anthropic PBC has disabled access to its most advanced artificial intelligence models, including Mythos, following an unprecedented order by the Trump administration to keep the technology out of the hands of all foreign nationals. The U.S. government told Anthropic to suspend access to the Fable 5 and Mythos 5 models by any foreign national "whether inside or outside the United States," citing national security concerns, the company said in a statement. A U.S. official confirmed that the Commerce Department sent the letter. The model developer has since shut off access to both systems to all customers to ensure compliance. Never before has the U.S. government taken such sweeping measures to rein in foreign access to frontier AI models developed by an American company. The Trump and Biden administrations have limited access abroad to other consequential technologies such as semiconductors and supercomputers, and some have debated the merits of blocking access to AI models. But restrictions on the software itself have raised constitutional and commercial concerns. Anthropic said it believes the U.S. government issued the order after discovering that it's possible to "jailbreak," or bypass the guardrails, of Fable 5, a recently released version of Mythos that the company blocked from carrying out cybersecurity tasks. "We disagree that the finding of a narrow potential jailbreak should be cause for recalling a commercial model deployed to hundreds of millions of people," Anthropic said in its website post. "If this standard was applied across the industry, we believe it would essentially halt all new model deployments for all frontier model providers." Researchers at Amazon.com Inc. had conducted jailbreak research that revealed some vulnerabilities in Anthropic's model, according to a report in the Wall Street Journal. Amazon and the U.S. government were in contact about the vulnerability before the controls were imposed, according to people familiar with matter who were granted anonymity to discuss sensitive conversations. Amazon Chief Executive Andy Jassy was involved in those exchanges, one of the people said. The Information reported earlier that Jassy raised concerns to senior U.S. officials. An Amazon spokesperson said it's not uncommon for governments to consult with the company on security risks, but declined to share details of any such discussions. The government's move to so widely restrict access to a set of AI models in the name of national security threatens to set a precedent for all major AI model developers including OpenAI, Alphabet Inc.'s Google and Meta Platforms Inc. Industry leaders such as Nvidia Corp. Chief Executive Officer Jensen Huang and OpenAI CEO Sam Altman have in the past encouraged the US government to instead promote worldwide adoption of American AI systems and protect the nation's lead. "For anyone who was naive and perhaps hoping that this leverage wouldn't be exerted, it's a massive wake-up call," Aidan Gomez, the co-founder of Cohere Inc., a Nvidia Corp.-backed AI startup, said Saturday in an interview. "No one can deny it any more." Anthropic said it received the government order at 5:21 p.m. New York time on Friday. The end-of-day directive runs counter to earlier statements, as well as an executive order recently signed by President Trump, which suggested the administration wouldn't pursue a licensing regime for model reviews. Friday's directive also threatens to escalate long-standing tensions between Anthropic and some within the Trump administration. Earlier this year, the AI developer clashed with the Pentagon over the use of its technology for military and surveillance purposes. The administration declared the company a U.S. supply-chain risk as a result of the blowup and ordered U.S. agencies to phase out the use of its products. Privately held Anthropic, which has long positioned itself as a more responsible AI developer, first released its Mythos model in April to a very limited group of companies and institutions, warning that its ability to find cybersecurity vulnerabilities made it too risky to distribute more widely. There were signs that the limited release was working to ease tensions between Anthropic and the Trump administration: In April, the U.S. government was preparing to make a version of Mythos available to major federal agencies, Bloomberg previously reported. Mythos also accelerated the Trump administration's efforts on AI policy, which included the recent executive order that called for voluntary model review. That order explicitly said that nothing in it should be construed as creating a mandatory licensing regime. David Sacks, Trump's former AI czar and current co-chair of the President's Council of Advisers on Science and Technology, said that Anthropic refused to fix a jailbreak of the guardails in its Fable model. "The Admin's hope now is that Anthropic remediates the safety issue, the export control is lifted, and Fable goes back into general release," he wrote in a post on X. "The Admin wants all of this to happen as soon as possible. It is frankly bewildered that Anthropic hasn't wanted to comply with safety requests that it previously said were its highest priority." The latest government restriction is colliding with a race among U.S. developers to deliver the most advanced AI models and prove to their investors that the technology can turn a profit. Both OpenAI and Anthropic are seeking initial public offerings as soon as this year, following SpaceX's own historic IPO. The rush to deliver the most cutting-edge AI models spurred Anthropic itself to post a lengthy blog earlier this month, calling for the creation of a system in which governments and AI developers collectively decide when to slow work on the technology to stave off the risks it may pose. "It would be good for the world to have the option to show or temporarily pause" AI work that may be dangerous, the company said in the post at the time. AI is advancing to the point where the technology can make human work thousands of times more efficient or even replace it, creating a new set of risks, the company said. The European Union's executive arm said that it's assessing Anthropic's statement and is continuing to talk to allies about the potential risks and cybersecurity concerns related to powerful new AI models. The European Commission added that the latest developments underline Europe's need for technological sovereignty. '"s a person in the field, I'm not particularly thrilled to see this," said Cohere's Gomez. "I don't think this is partnerly, I don't think this is the right thing to do for the broader technological alliances that have developed over the course of the past 80 years." Eastland and Lowenkron write for Bloomberg. With assistance from Shirin Ghaffary, Yi Wei Wong, Gian Volpicelli, Spencer Soper and Thomas Seal. The post Anthropic shuts down Mythos access after sweeping U.S. order appeared first on Los Angeles Times.
Anthropic cuts access to AI models over US 'national security' order - The Korea Times
SAN FRANCISCO -- Anthropic said Friday it has suspended access to two powerful AI models, Fable 5 and Mythos 5, to comply with a U.S. national security order. Just three days after publicly launching Fable 5, the company said in a blog post that it received a government directive banning all foreign nationals, even ones who work at Anthropic, from accessing Fable 5 and Mythos 5 over national security concerns. "The net effect of this order is that we must abruptly disable Fable 5 and Mythos 5 for all our customers to ensure compliance," it said. The company said it received the letter at 5:21 pm (2121 GMT) Friday. Axios reported that the letter came from U.S. Commerce Secretary Howard Lutnick. The U.S. Commerce officials did not immediately respond to a request from AFP. The firm said that the letter did not state what specifically concerned the government. However, the firm's "understanding is that the government believes it has become aware of a method of bypassing, or 'jailbreaking'" the Fable 5 model such that it could aid hacking. Fable 5, released Tuesday, is a locked-down version of Mythos 5, a cutting-edge AI model that Anthropic has held back from the public amid concerns that it had unprecedented abilities to identify software vulnerabilites -- or holes in code that hackers could exploit Mythos 5 -- the unrestricted model -- has only been released to select companies. The European Union, which gained access to Mythos earlier in June after weeks of talks, said the latest development further underlined "Europe's need for technological sovereignty." "We take note of Anthropic's statement and are assessing," said Thomas Regnier, a spokesman for the European Commission, which this month unveiled measures to slash the 27-nation bloc's dependence on America and Asia for key technologies, including AI. Anthropic said it had reviewed the "jailbreaking" method at the center of the speculation and the hacking opportunities it exposed, but it does not believe Fable 5 gives hackers capabilities that are not already available through other public models. The firm said that none of its security testers had found a "universal jailbreak," or a way to bypass it's safeguards against helping hackers. "We disagree that the finding of a narrow potential jailbreak should be cause for recalling a commercial model deployed to hundreds of millions of people," the company said. "If this standard was applied across the industry, we believe it would essentially halt all new model deployments for all frontier model providers." Anthropic has been locked in a legal standoff with the Trump administration for refusing to allow its technology to potentially be used for mass surveillance and autonomous weapons, leading the Pentagon to cut contracts with the company.
Anthropic's Fable Is Locked Down As US Takes AI Safety Into Its Hands
But the company's resistance may be overshadowed by a larger question: what happens when a founder-led AI company's own warnings about existential risk get taken literally by policymakers? Anthropic Advocated Its Way Into Regulation With Fable This is what happens when you advocate loudly for AI safety regulation. The government listens. Anthropic built its entire corporate narrative on the premise that models like Mythos pose such severe risks that they should never be released to the public. The company stated plainly in April that Mythos was "too dangerous" for broad release because "the fallout for economies, public safety, and national security could be severe." Anthropic launched Fable 5 as a compromise, a heavily guardrailed alternative designed to capture some of Mythos' capabilities while containing its worst behaviors. The contradiction is striking. Anthropic spent this spring fighting a Pentagon supply-chain-risk designation that excluded it from Defense Department contracts, a label a federal judge suggested looked like punishment after the company refused to let the military use Claude for mass surveillance and autonomous weapons. Now the same government that tried to push Anthropic out is invoking national security to lock its models away from foreign users. The company is treated as both a liability to do business with and a capability too potent to share. But guardrails are not walls. No AI model in history has avoided jailbreaking entirely. Anthropic invested tremendous effort in red-teaming Fable 5, searching for exploitable weaknesses in its defenses. The company even leads the industry in "observability research," the effort to understand how large language models actually behave at scale. And yet, as Anthropic itself knows, no one truly understands these models completely. Their behavior remains partly opaque even to their creators. If Mythos truly represents the danger Anthropic claimed, then Fable 5 likely carries some version of that same risk. The guardrails reduce the probability of harmful outputs, but they do not eliminate it. The Commerce Department directive, issued by Secretary Howard Lutnick under the Bureau of Industry and Security, represents the latest escalation in government AI regulation. This specific action follows a broader White House approach to AI regulation that Sean Cairncross has helped shape. Crucially, this is a mandatory licensing action, not the voluntary testing framework the administration rolled out earlier this month. Per Axios, the executive order on pre-deployment testing is explicitly voluntary and avoids a licensing regime, a structure White House chief AI adviser David Sacks secured to prevent what he calls "regulatory capture" of the largest labs. The export control is a separate, binding measure. Per Commerce's letter, a license is now required for any export, re-export, or domestic transfer of the models, Anthropic must file additional applications for individually validated licenses, and failure to comply carries financial and civil penalties
Amazon likely voiced concerns about Anthropic AI models before US crackdown
In a blog post, Anthropic said the US government told the company it believes there is a method of bypassing, or "jailbreaking," a safeguard against using the model to find cybersecurity holes Amazon CEO Andy Jassy was among tech leaders who raised concerns to senior Trump administration officials ??this week about security risks in Anthropic's most advanced AI models, a person familiar with the matter told Reuters. Jassy's involvement sheds light on the extraordinary move by Anthropic on Friday to shut down its latest models globally in response to national security orders from President Donald Trump's administration. The San Francisco-based AI startup, which has confidentially filed for a US initial public offering, had previously warned about the hacking capabilities of its Mythos model and held it back from wide release, but earlier this week, Anthropic rolled out a public version, called Fable, with what it described as cybersecurity safeguards. That brief release ended on Friday. In a blog post, Anthropic said the US government told the company it believes there is a method of bypassing, or "jailbreaking," a safeguard against using the model to find cybersecurity holes. The bypass found only "minor" security flaws that other publicly available models can also find, Anthropic said in its blog post. The Trump administration ordered Anthropic to block any foreign nationals, whether inside or outside the US, from using both its latest models, Fable 5 and Mythos 5, the company said. In response, Anthropic said it would disable access to the models globally. Amazon did not confirm whether it spoke to government officials about Anthropic's models. Also Read SpaceX surges past $2 trillion in Nasdaq debut, closes in on Amazon India's data centre boom will succeed only if it stays sustainably greenpremium Flipkart hires senior tech leaders to strengthen AI, fintech capabilitiespremium Apple AI now runs on Google, Nvidia tech: What happens to privacy promise Amazon to rely on own charging infra to expand EV delivery fleet in India "As a leading cloud provider that serves a large number of private and public sector customers, it's not uncommon for governments to seek our counsel on potential security risks," an Amazon spokesperson said. "When they occur, we don't share the details of these discussions." Export controls The Information, a technology news outlet, earlier on Saturday reported Jassy's concerns. The Information, citing a US official, later reported that the administration was unlikely to force other AI firms to abide by restrictions similar to those placed on Anthropic. Reuters could not immediately verify the Trump administration's plans for regulating other firms. The US government restrictions came in the ??form of an export control, Anthropic said in its blog post. The US Commerce Department's Bureau of Industry and Security, which oversees export controls, did not immediately respond to a request for comment. Officials issued the export control "reluctantly" after Anthropic CEO Dario Amodei "refused" to "fix the jail break or de-deploy the model," White House adviser David Sacks wrote in a social media post on Saturday. "The Admin's hope now is that Anthropic remediates the safety issue, the export control is lifted, and Fable goes back into general release," wrote Sacks, co-chair of Trump's Council of Advisors on Science and Technology and formerly the White House's AI czar. Some experts who favor export controls on advanced AI models found the Trump administration's action puzzling because it affects allied nations as well as adversaries. "This was not well thought-out," said Jimmy Goodrich, a senior fellow at the University of California's Institute for Global Conflict and Cooperation. "It even bans Canadians and Brits employed at Anthropic from doing research and development." The order came just as a previous dispute between Trump administration officials and Anthropic showed signs of easing across parts of the US government. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) More From This Section PM Modi reaches France for bilateral talks, G7 Summit engagements Despite Tehran's denial, Trump says US-Iran deal to be signed Sunday Starmer tells Nato chief UK will publish defence plan before July summit Violation of US blockade in Hormuz will not be tolerated: US tells India PM Modi, Trump to hold talks on sidelines of G7 in France: White House
Amazon voiced concerns about Anthropic AI models before US crackdown, source says
The US government ordered AI firm Anthropic to halt its advanced AI models worldwide. This action followed concerns about potential misuse for cybersecurity vulnerabilities. Amazon CEO Andy Jassy reportedly raised security risks to Trump administration officials. Anthropic stated the government cited a method to bypass safeguards. The company complied with the national security order, disabling access globally. Amazon CEO Andy Jassy was among tech leaders who raised concerns to senior Trump administration officials this week about security risks in Anthropic's most advanced AI models, a person familiar with the matter told Reuters. Jassy's involvement sheds light on the extraordinary move by Anthropic on Friday to shut down its latest models globally in response to national security orders from President Donald Trump's administration. The San Francisco-based AI startup, which has confidentially filed for a U.S. initial public offering, had previously warned about the hacking capabilities of its Mythos model and held it back from wide release, but earlier this week, Anthropic rolled out a public version, called Fable, with what it described as cybersecurity safeguards. That brief release ended on Friday. In a blog post, Anthropic said the U.S. government told the company it believes there is a method of bypassing, or "jailbreaking," a safeguard against using the model to find cybersecurity holes. The bypass found only "minor" security flaws that other publicly available models can also find, Anthropic said in its blog post. The Trump administration ordered Anthropic to block any foreign nationals, whether inside or outside the U.S., from using both its latest models, Fable 5 and Mythos 5, the company said. In response, Anthropic said it would disable access to the models globally. Amazon did not confirm whether it spoke to government officials about Anthropic's models. "As a leading cloud provider that serves a large number of private and public sector customers, it's not uncommon for governments to seek our counsel on potential security risks," an Amazon spokesperson said. "When they occur, we don't share the details of these discussions." EXPORT CONTROLSThe Information, a technology news outlet, earlier on Saturday reported Jassy's concerns. The Information, citing a U.S. official, later reported that the administration was unlikely to force other AI firms to abide by restrictions similar to those placed on Anthropic. Reuters could not immediately verify the Trump administration's plans for regulating other firms. The U.S. government restrictions came in the form of an export control, Anthropic said in its blog post. The U.S. Commerce Department's Bureau of Industry and Security, which oversees export controls, did not immediately respond to a request for comment. Officials issued the export control "reluctantly" after Anthropic CEO Dario Amodei "refused" to "fix the jail break or de-deploy the model," White House adviser David Sacks wrote in a social media post on Saturday. "The Admin's hope now is that Anthropic remediates the safety issue, the export control is lifted, and Fable goes back into general release," wrote Sacks, co-chair of Trump's Council of Advisors on Science and Technology and formerly the White House's AI czar. Some experts who favor export controls on advanced AI models found the Trump administration's action puzzling because it affects allied nations as well as adversaries. "This was not well thought-out," said Jimmy Goodrich, a senior fellow at the University of California's Institute for Global Conflict and Cooperation. "It even bans Canadians and Brits employed at Anthropic from doing research and development." The order came just as a previous dispute between Trump administration officials and Anthropic showed signs of easing across parts of the U.S. government.
SpaceX-linked products see $9B in trading, $5.6B on Binance in 24 hours
Binance's perpetual futures contract on SpaceX captured over 60% of the derivatives market as Elon Musk's rocket company went public on Nasdaq SpaceX didn't just break into public markets this week. It broke crypto trading records on the way in. More than $9 billion in total volume has flowed through SpaceX-linked derivative products since they launched in May, with $5.6 billion of that landing on Binance alone in a single 24-hour window around the company's Nasdaq debut on June 13. To put that in perspective, that's more daily volume than most mid-cap tokens see in a month. The IPO that lit up two markets simultaneously SpaceX priced its IPO at roughly $135 per share under the ticker SPCX on June 12-13, then promptly closed up about 19% near $161. That pop pushed the company's market capitalization past the $2 trillion mark, placing it in rarefied air alongside the largest publicly traded companies on Earth. But the traditional stock market was only half the story. Binance had already launched its SPCXUSDT perpetual futures contract back on May 21, weeks before the first share changed hands on Nasdaq. By the time the IPO actually happened, crypto traders had been positioning themselves for days. The result: Binance captured over 60% of all SpaceX derivatives volume across both centralized and decentralized exchanges. Other exchanges weren't sitting idle. OKX, Crypto.com, Bitget, and the decentralized platform Hyperliquid all rolled out their own SpaceX-related trading products in early June, creating a multi-venue market for synthetic exposure to the IPO. How perpetual futures turned an IPO into a 24/7 event Perpetual futures are contracts that let you bet on the price of an asset, with leverage, without ever owning the underlying shares. They don't expire like traditional futures, so you can hold a position indefinitely. And they trade around the clock, weekends included. For SpaceX's SPCXUSDT contracts, Binance offered up to 5x leverage. That means a trader with $10,000 could take a $50,000 position on SpaceX's share price movement. When the stock popped 19% on its first day, leveraged long positions printed handsomely. Of course, leverage cuts both ways, and anyone caught on the wrong side of a 19% move at 5x would have been staring at a near-total wipeout. The contracts initially traded based on pre-IPO pricing signals, then transitioned to reflect the actual public listing price once shares began trading on Nasdaq. This transition mechanism is relatively new territory for crypto exchanges, and the fact that it handled $5.6 billion in volume without any widely reported blowups is notable. The bigger picture: crypto as a shadow equity market Unlike owning actual SPCX shares on Nasdaq, holding a perpetual futures position on Binance gives you zero shareholder rights, no dividends, and counterparty risk tied to the exchange itself.
Anthropic shuts down Mythos access after sweeping U.S. order
Anthropic PBC has disabled access to its most advanced artificial intelligence models, including Mythos, following an unprecedented order by the Trump administration to keep the technology out of the hands of all foreign nationals. The U.S. government told Anthropic to suspend access to the Fable 5 and Mythos 5 models by any foreign national "whether inside or outside the United States," citing national security concerns, the company said in a statement. A U.S. official confirmed that the Commerce Department sent the letter. The model developer has since shut off access to both systems to all customers to ensure compliance. Never before has the U.S. government taken such sweeping measures to rein in foreign access to frontier AI models developed by an American company. The Trump and Biden administrations have limited access abroad to other consequential technologies such as semiconductors and supercomputers, and some have debated the merits of blocking access to AI models. But restrictions on the software itself have raised constitutional and commercial concerns. Anthropic said it believes the U.S. government issued the order after discovering that it's possible to "jailbreak," or bypass the guardrails, of Fable 5, a recently released version of Mythos that the company blocked from carrying out cybersecurity tasks. "We disagree that the finding of a narrow potential jailbreak should be cause for recalling a commercial model deployed to hundreds of millions of people," Anthropic said in its website post. "If this standard was applied across the industry, we believe it would essentially halt all new model deployments for all frontier model providers." Researchers at Amazon.com Inc. had conducted jailbreak research that revealed some vulnerabilities in Anthropic's model, according to a report in the Wall Street Journal. Amazon and the U.S. government were in contact about the vulnerability before the controls were imposed, according to people familiar with matter who were granted anonymity to discuss sensitive conversations. Amazon Chief Executive Andy Jassy was involved in those exchanges, one of the people said. The Information reported earlier that Jassy raised concerns to senior U.S. officials. An Amazon spokesperson said it's not uncommon for governments to consult with the company on security risks, but declined to share details of any such discussions. The government's move to so widely restrict access to a set of AI models in the name of national security threatens to set a precedent for all major AI model developers including OpenAI, Alphabet Inc.'s Google and Meta Platforms Inc. Industry leaders such as Nvidia Corp. Chief Executive Officer Jensen Huang and OpenAI CEO Sam Altman have in the past encouraged the US government to instead promote worldwide adoption of American AI systems and protect the nation's lead. "For anyone who was naive and perhaps hoping that this leverage wouldn't be exerted, it's a massive wake-up call," Aidan Gomez, the co-founder of Cohere Inc., a Nvidia Corp.-backed AI startup, said Saturday in an interview. "No one can deny it any more." Anthropic said it received the government order at 5:21 p.m. New York time on Friday. The end-of-day directive runs counter to earlier statements, as well as an executive order recently signed by President Trump, which suggested the administration wouldn't pursue a licensing regime for model reviews. Friday's directive also threatens to escalate long-standing tensions between Anthropic and some within the Trump administration. Earlier this year, the AI developer clashed with the Pentagon over the use of its technology for military and surveillance purposes. The administration declared the company a U.S. supply-chain risk as a result of the blowup and ordered U.S. agencies to phase out the use of its products. Privately held Anthropic, which has long positioned itself as a more responsible AI developer, first released its Mythos model in April to a very limited group of companies and institutions, warning that its ability to find cybersecurity vulnerabilities made it too risky to distribute more widely. There were signs that the limited release was working to ease tensions between Anthropic and the Trump administration: In April, the U.S. government was preparing to make a version of Mythos available to major federal agencies, Bloomberg previously reported. Mythos also accelerated the Trump administration's efforts on AI policy, which included the recent executive order that called for voluntary model review. That order explicitly said that nothing in it should be construed as creating a mandatory licensing regime. David Sacks, Trump's former AI czar and current co-chair of the President's Council of Advisers on Science and Technology, said that Anthropic refused to fix a jailbreak of the guardails in its Fable model. "The Admin's hope now is that Anthropic remediates the safety issue, the export control is lifted, and Fable goes back into general release," he wrote in a post on X. "The Admin wants all of this to happen as soon as possible. It is frankly bewildered that Anthropic hasn't wanted to comply with safety requests that it previously said were its highest priority." The latest government restriction is colliding with a race among U.S. developers to deliver the most advanced AI models and prove to their investors that the technology can turn a profit. Both OpenAI and Anthropic are seeking initial public offerings as soon as this year, following SpaceX's own historic IPO. The rush to deliver the most cutting-edge AI models spurred Anthropic itself to post a lengthy blog earlier this month, calling for the creation of a system in which governments and AI developers collectively decide when to slow work on the technology to stave off the risks it may pose. "It would be good for the world to have the option to show or temporarily pause" AI work that may be dangerous, the company said in the post at the time. AI is advancing to the point where the technology can make human work thousands of times more efficient or even replace it, creating a new set of risks, the company said. The European Union's executive arm said that it's assessing Anthropic's statement and is continuing to talk to allies about the potential risks and cybersecurity concerns related to powerful new AI models. The European Commission added that the latest developments underline Europe's need for technological sovereignty. '"s a person in the field, I'm not particularly thrilled to see this," said Cohere's Gomez. "I don't think this is partnerly, I don't think this is the right thing to do for the broader technological alliances that have developed over the course of the past 80 years."
Project Glasswing melts: US government suspends early access to Anthropic's Fable 5, Mythos 5 within days of rollout
India's brief access to advanced AI models from Anthropic has ended. A US government directive halted local access to Mythos 5 and Fable 5. This development signals a new AI export control regime. Governments now view frontier AI as strategic assets. India's engagement on technology policy faces new challenges. India's access to one of the world's most advanced artificial intelligence (AI) models appears to have lasted barely a few days. After Anthropic expanded access to its closely guarded Claude Mythos system to a handful of Indian organisations, a US government directive led the company to suspend local access to Mythos 5 and Fable 5, raising questions about whether frontier AI models are becoming geopolitical assets similar to advanced semiconductors that remain the exclusive preserve of a chosen few. The Centre, an official told ET,would continue to engage with both Anthropic and Washington to understand the scope of the restrictions and whether they are limited to Mythos 5 and Fable 5 or could extend to other models in the Mythos family. "It's to be seen if the latest directive is only for Mythos 5 and Fable 5, or will it also impact the other models in the Mythos class, going forward. We hope that's not the case," said the official cited above. The significance of this suspension lies in how Anthropic rolled out the models. Mythos 5, among the company's most advanced AI systems, was initially kept under restricted access and made available only to a small group of researchers, cybersecurity experts and trusted partners because of its powerful cyber and reasoning capabilities. Through its Project Glasswing cybersecurity initiative, Anthropic gradually expanded access to select organisations. It then launched Fable 5, a more widely accessible version, just a few days ago. Now access to both these models has been suspended following the US directive. The development is particularly significant for India. Several organisations across cybersecurity, telecom, finance and banking had secured early access to Mythos under Project Glasswing, ET had reported last week. Made the Cut While the number of Indian entities granted access was in the single digits, officials described it as a key win in India's continued engagement on technology policy. Public-sector entities, including the Indian Computer Emergency Response Team (CERT-In), were also expected to receive access. Beyond the immediate impact on those organisations, experts say the episode could mark the beginning of a broader shift in how governments approach advanced AI. "The development signals the emergence of a new AI export-control regime. And the pace is striking," said Subimal Bhattacharjee, an independent tech policy analyst. "Washington moved from chip controls to controlling the models themselves. What took years to build for semiconductors is being compressed into months for AI." According to Bhattacharjee, the Mythos-to-Fable-to-suspension sequence shows that governments increasingly view frontier AI systems as strategic assets rather than commercial products. "The lesson is that states and labs urgently need a harmonised, predictable framework of enablement rather than abrupt, ambiguous shutdowns that disrupt access globally," he said. Access Control While cybersecurity concerns have been cited as the trigger, the move reflects a broader geopolitical strategy, Bhattacharjee argued. "The order asserts a broader power, not just to scrutinise model safety, but to restrict who may access frontier AI at all when officials judge the risk to be national-security related," he said. "Combined with the chip-tier system and model-weight licensing, it fits a deliberate geopolitical strategy to control who can reach the technological frontier." Cybersecurity experts say concerns around Fable 5 are less about entirely new capabilities and more about the speed and scale at which such systems can operate. "Fable 5 introduced long-horizon autonomy and proactive self-verification. When an AI can compress months of human penetration testing into a matter of hours, the sheer velocity of vulnerability discovery alters the risk landscape," said Neehar Pathare, chief executive of 63SATS Cybertech, a cybersecurity company. However, Pathare cautioned that restricting access may not be enough to contain such capabilities. "The belief that a centralized government directive can permanently restrict access to advanced AI capabilities is a regulatory fantasy," he said, highlighting the rapid progress of open-source models. For India, this episode raises questions that extend beyond access to a single AI model. Bhattacharjee said the restrictions are an early signal that access to frontier AI could become as strategically important as semiconductors. As governments increasingly seek to shape who can access the world's most advanced AI systems, the development is likely to strengthen the case for sovereign AI and domestic capability building.
Paul Krugman Claims 'Rigged System' Made Elon Musk a Trillionaire, Brands SpaceX a 'Ponzi Scheme'
Former New York Times columnist Paul Krugman argued Elon Musk was only able to become the world's first trillionaire because of a "rigged system." The famous economist also bashed SpaceX -- Musk's rocket company that just went public -- by calling it nothing more than a "Ponzi scheme." Krugman criticized Musk, SpaceX, and Musk's leadership of his other companies during an appearance on Ari Melber's MS NOW show on Friday night. "This is a rigged system. Sorry, but this is genuine rigging," Krugman said. "Clearly, the system has all been tilted into producing this absurd valuation that makes the world's first trillionaire." He said that was obviously the case because a lot of people were being "forced" to invest in SpaceX -- whether they wanted to or not -- because it was being added to major indices and top universities have sizable portions of their endowments parked in the rocket company's stock. Krugman said SpaceX's $2.10 trillion valuation after its first day of trading on Friday didn't make a lot of sense to him, either. He said it would be fine if Musk had a record of "actually pulling off technological miracles routinely" -- but he said the man running SpaceX, Tesla, and NeuraLink doesn't have that. He also ripped Musk for his leadership of X. Krugman said Musk -- after buying the app formerly known as Twitter in late 2022 -- turned the platform into a "right-wing, Nazi-infested wasteland." And speaking of Nazis, Krugman recently said the U.S. will have to go through a "de-MAGAfication" process after President Donald Trump leaves office, just like Germany went through a Denazification process following World War II. Krugman wasn't the only one on cable news complaining about Musk becoming a trillionaire on Friday. His former NYT colleague Michelle Goldberg called Musk a "white supremacist" on MS NOW, and political pundit Bakari Sellers made the same accusation over on CNN. Those comments came a few hours after Musk's rocket company SpaceX went public. The stock jumped nearly 20% in its first day of trading, closing around $161 per share. Watch above via MS NOW. The post Paul Krugman Claims 'Rigged System' Made Elon Musk a Trillionaire, Brands SpaceX a 'Ponzi Scheme' first appeared on Mediaite.
Anthropic disables top-tier AI access over security fears
Anthropic has that said that it will "abruptly disable" its most advanced AI models for all users after the US government ordered it to suspend access to the models for foreign nationals, citing national security concerns. The company received the export control directive to suspend access to Fable 5 and Mythos 5 for all foreign nationals, without being given specific details of its national security concern, Anthropic said in a statement. It is Anthropic's understanding that the government believes there is a method of bypassing, or 'jailbreaking,' a safeguard that would prevent Fable 5 from being used in identifying software vulnerabilities, the company said. The order comes just as a previous dispute between Trump administration officials and IPO-bound Anthropic showed signs of easing across parts of the US government. Anthropic's relationship with the government ruptured this year after it refused to allow the US military to use its AI models for domestic surveillance and fully autonomous weapons systems. The government responded by putting Anthropic on a supply chain blacklist, set to take effect later in the year. The action also marks a major escalation of US efforts to halt foreign adversaries' AI capabilities. For years, US export controls have focused on the chips and tools that power AI rather than on restricting foreign access to AI itself. Anthropic said the government has given it only "verbal evidence of a potential narrow, non-universal jailbreak". "We disagree that the finding of a narrow potential jailbreak should be cause for recalling a commercial model deployed to hundreds of millions of people," the company said. The government directive and Anthropic's response highlight growing tension between AI developers and regulators over how to assess risks from so-called 'jailbreaks,' or methods used to bypass model safeguards. As recently as Wednesday, Anthropic had called for greater U.S. oversight of AI, including the ability to block models with unacceptable risks. It said, however, the government action on Friday did not follow principles of fair and fact-based regulation. The Pentagon's chief information officer, Kirsten Davies, said in a post on X that the Defence Department supported prioritising national security. "Some things are simply more important than revenue cycles, clickbait, and pre-IPO valuation. America First. Always," Davies said.
'Mag 7' or MANGOS? SpaceX IPO sparks Wall Street debate
(New users only) It's tax relief season! Get up to RM300 when you save with Versa! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&Cs apply. NEW YORK, June 14 -- SpaceX roared into markets this past week with a valuation of more than US$2 trillion, surpassing two members of Wall Street's "Magnificent Seven" and raising a key question: Does the Mag 7 name still fit? And if not, what should replace it? The IPO, the biggest in US history, vaulted SpaceX's value above two Mag 7 members: CEO Elon Musk's other company, Tesla, and Meta Platforms. With trillion-dollar contenders such as OpenAI and Anthropic waiting in the IPO wings, the club may soon need a name change, analysts said. With SpaceX's arrival, "it becomes very hard to keep using Mag 7 as the clean shorthand for market leadership because one of the most important companies in the world would immediately be outside the label," said Shay Boloor, chief market strategist at Futurum Equities. These groupings are not formal market categories, but shorthand labels coined by strategists, investors and the media to capture the hottest big stocks at a given moment. Such monikers have a long history, ranging from the "Nifty 50" of the 1960s and 1970s to the "Four Horsemen" of the late 1990s dot-com boom. The SpaceX IPO has set off a race to devise the next cool acronym. One sobriquet gaining traction on X is "MANGOS", which stands for Meta, Anthropic, Nvidia, Alphabet, OpenAI and SpaceX. That grouping is far from standardised, with some interpreting the "A" as Apple, currently the third most-valuable US-listed firm. "We are already referring to it internally and the industry is picking up on it as well," said Aga Kuplinska, SVP of product development at Tidal Financial Group, which helps asset managers roll out ETFs. Dan Boardman-Weston, CEO at BRI Wealth Management, is going another way, suggesting "Magna Atoms" - the Magnificent Seven plus SpaceX, OpenAI and Anthropic. The Magnificent Seven ride The "Magnificent Seven" term was coined by BofA Global Research Chief Investment Strategist Michael Hartnett in late 2023 to describe seven heavyweight technology-related stocks: Nvidia, Apple, Amazon, Alphabet, Meta, Tesla and Microsoft. With an AI boom driving stock markets to record highs and the sudden appearance of new trillion-dollar companies, the leaderboard is often in a state of flux. In a May 22 note, BofA wrote about the "AI Big 10," adding Broadcom, Micron Technology and Advanced Micro Devices to the original seven, reflecting the semiconductor rally of the past year. That group accounts for more than 40% of the S&P 500's weight, according to LSEG data. The labels have evolved before - from FANG to FAANG to the Magnificent Seven - each tracking shifts in companies that led the market. FANG covered Facebook, Amazon, Netflix and Google. FAANG added Apple, and Magnificent Seven dropped Netflix while adding Microsoft, Nvidia and Tesla, each shift reflecting changes at the top of the market. "It's been Mag 7 for several years now. Maybe the markets are excited for something new," said Dustin Thackeray, chief investment officer at Crewe Advisors. To be sure, not everyone expects the old label to ride off into the sunset. "The Magnificent Seven label is not going away," said Dave Mazza, CEO of Roundhill Investments. "It is too embedded in how investors and the media view large-cap tech leadership. What you will likely see is additive terminology rather than replacement." -- Reuters
SpaceX's Retail-Powered Debut Helps Steady Shaky Markets
SpaceX's market debut on Friday resulted in a $2.1 trillion market capitalization, with individual investors buying $118 million in stock. For the first time in weeks, investors had jitters. About the war in the Middle East. About the runaway chip rally. About higher interest rates. Then came the ...
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Wealth Expert: SpaceX IPO Will Likely Make Elon Musk the World's First Trillionaire
* Musk's TSLA and SpaceX stakes total ~$970B; SpaceX shares must hold above $140 for him to become history's first trillionaire. * RKLB surged 319% over the past year as the closest public-market proxy for SpaceX, posting record Q1 revenue of $200M. * Thousands of early SpaceX employees who took below-market salaries in exchange for equity are set to become millionaires as the company goes public. * Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks -- and Rocket Lab didn't make the cut. Grab the names FREE today. CNBC Wealth Editor correspondent Robert Frank delivered a milestone moment on air this morning, saying: "By the end of today, Elon Musk will likely become the world's first trillionaire." This comes as the result of the long-awaited SpaceX IPO, which is poised to revalue Musk's privately held stake at public-market multiples and push his net worth past a threshold no individual has ever crossed. The Tesla and SpaceX Stack On the Tesla side, Frank pegged Musk's stake at "around $260 billion" as of yesterday's close, a figure that "includes those options worth about $120 billion that were tied up in court for a while. He got those back." Tesla (NASDAQ:TSLA) carries a market cap of $1.49 trillion and trades at $396.82, down 11.24% year to date but still up 22.28% over the past year. Tesla's Q1 FY26 revenue of $22.39 billion (+15.8% YoY) and its disclosed $2 billion equity investment in SpaceX tightened the financial link between the two companies before today's listing. The SpaceX line is where the math gets historic. Frank cited the S-1 directly: "On SpaceX, the S-1 filing lists him with 6.4 billion shares. At an IPO price of $130 to $135 a share, his SpaceX stake would be worth $690 billion." He noted that Musk excludes 1.3 billion SpaceX shares from the calculation because they do not vest until milestones tied to Mars colonization or massive compute targets are met. The $140 Threshold for SpaceX Adding it up, Frank said: "That brings SpaceX and Tesla together to $950 billion. Adding Neuralink, Boring, other assets probably worth $10-20 [billion], that brings him right now to a total of about $970 billion." However, Musk can easily reach his fourth comma in his net worth if SpaceX stock moves higher: "SpaceX shares need to stay above $140 a share for Musk to be the first person in the world to receive the fourth comma in his net worth." As of 2:43 PM ET on June 12, SpaceX stock currently trades at nearly $170, meaning Musk would reach trillionaire status today if the price holds.
Trump Administration Reignites Its Feud With Anthropic Over Latest A.I. Models
The feud between Anthropic and the Trump administration escalated again on Saturday after the government took the unusual step a day earlier of demanding that the artificial intelligence company cut off foreign access to its latest models, as top officials suggested the dispute was unlikely to resolve quickly. Late on Friday, Anthropic disclosed in a blog post that it had disabled access for all customers to its most advanced A.I. systems, known as Fable 5 and Mythos 5, after receiving a directive from the administration to suspend access to any foreign national. The move shocked former U.S. officials and cybersecurity experts, many of whom questioned the validity of the action and noted that it diverged from the hands-off approach to policing the booming A.I. industry that President Trump had endorsed earlier this month. Anthropic said the directive did not explain the national security concerns that prompted it. But the company added that the government had said that it became aware of a method to "jailbreak," or bypass, security restrictions on Fable 5 intended to limit a customer's ability to abuse the product for hacking or other potential harms. Anthropic countered that the fears about the jailbreak method were overblown. The announcement inflamed tensions between the Trump administration and Anthropic, which earlier this month confidentially filed for an initial public offering following a funding round valuing it at nearly $1 trillion. The two sides have sparred for months over how Anthropic's A.I. systems could be used in military and intelligence settings, culminating with the Pentagon labeling the company a supply-chain risk. On Saturday, top Trump administration officials and allies of Mr. Trump's stepped up their attacks on Anthropic. "Three months ago, @DeptofWar kicked @AnthropicAI out of our building -- forever," Defense Secretary Pete Hegseth said on X. "Every passing day proves why that was the right move." David Sacks, a venture capitalist who until recently worked in the administration as an A.I. czar, accused Anthropic in a lengthy social media post on Saturday of being reckless with the release of its latest model, dubbed Fable 5. Mr. Sacks, who said he had spoken to many people inside and outside the administration about the directive, said the administration had asked Dario Amodei, Anthropic's chief executive, to fix the jailbreak issue after a "highly credible trusted partner" of Anthropic's and the government's came forward with research. "Dario refused," Mr. Sacks said. A person briefed on Mr. Amodei's conversations disputed the account, saying that Anthropic was happy to discuss the concerns. Mr. Sacks did not name the "trusted partner" he referred to in his post. But multiple technology firms, including Amazon, spoke with the White House about the security issues, according to people familiar with the matter. Several of the people said a message from Amazon's chief executive, Andy Jassy, detailing security issues was the most influential, raising concerns about the capabilities of the new Anthropic model. But several of these officials said a separate document from Amazon explaining the security concerns with Anthropic's model was misleading. The concerning capabilities that the document highlighted with Anthropic's model are also present in OpenAI's top model, 5.5. An Amazon spokesman declined to comment on the exact nature of its discussions with the White House. "It's not uncommon for governments to seek our counsel on potential security risks," the spokesman said. "When they occur, we don't share the details of these discussions." Administration officials called Anthropic officials at 1:15 p.m. Friday and gave them 90 minutes to pull their most advanced models down, citing an undefined national security concern, according to people briefed on the discussions. Anthropic officials asked for more information and worked to learn what the precise concern was, since the Commerce Department's review and testing of Fable did not reveal significant concerns. Then, at 5:21 p.m., Anthropic was notified that the Trump administration was imposing export controls that effectively forced the company to pull down its model, which consumers had just begun to have access to. Discussions about resolving the dispute are continuing. Howard Lutnick, the commerce secretary, spoke to Anthropic officials on Friday, and was set to have another session with senior company officials on Saturday evening, according to people briefed on the discussions and plans. Some experts said the Trump administration was either misunderstanding or deliberately misconstruing what transpired. Katie Moussouris, the chief executive of Luta Security, said on social media that she had seen the research paper that prompted the administration's actions. "It's not a jailbreak," she said, but rather a defensive maneuver designed to limit the misuse of a model. "If national defense is the goal, this is an own goal." Earlier this month, the Trump administration issued an executive order that asked technology companies to voluntarily let the government review their new models before releasing them to the public. But it did not give the government an official role in approving their release. The order had been delayed after a fierce debate in which A.I. companies -- and some sympathetic government officials -- had pushed back against the government interfering in model deployment. The dispute came on the heels of Anthropic's very limited release of Mythos, an A.I. model so good at discovering and weaponizing new cybersecurity vulnerabilities that it sparked widespread concerns about its potential to wreak havoc. The new restrictions on Anthropic have raised questions about the implications for other A.I. models that may have similar capabilities. Former officials and technology experts said the administration did not appear to have thought through the longer-term ramifications of such a move. But the measure could be limited to Anthropic, which received a fusillade of attacks from the administration in recent months. In February, amid the Pentagon's clash with Anthropic, Mr. Trump called the company a "radical left, woke company" and "Leftwing nut jobs" working to dictate how the government wins and fights wars. "I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology," the president wrote on social media. "We don't need it, we don't want it, and will not do business with them again!" Some administration officials have in recent weeks been looking for an off-ramp in the dispute, U.S. officials say. White House and intelligence officials have pushed forward a classified contract between Anthropic and the National Security Agency, which would allow the spy agency to use the company's technology for a variety of purposes, including intelligence analysis and detecting new computer vulnerabilities. Officials at the N.S.A., which is responsible for digital eavesdropping and government cybersecurity, were not involved in Friday's decision, according to people familiar with the matter. Many U.S. officials said the new technology Anthropic had developed was too important to national security to allow the dispute with the Pentagon to block cooperation. But inside the top ranks of the Pentagon, officials remain upset with the company, insisting that the firm sign on to the same contractual provisions that other A.I. companies have embraced. In a June 12 letter viewed by The New York Times, Mr. Lutnick told Mr. Amodei that a special license would be required for the company to distribute its Mythos and Fable 5 models "to all destinations worldwide," as well as to share them with non-U.S. citizens. "Failure to comply will result in prompt criminal and civil penalties, as provided for by law," Mr. Lutnick wrote. The government has controlled A.I. models before, but past restrictions were more targeted. A measure introduced early last year by the Biden administration placed restrictions on companies' ability to export the so-called weights for specific A.I. models -- the proprietary numerical values that tell the model how much importance to place on different pieces of data. The measure taken by the Trump administration goes far beyond that, by barring Anthropic from sharing the model with any foreign country or any foreign national without first obtaining a license. The restrictions on the involvement of foreign nationals, even those with green cards, could be particularly chilling in an industry that relies on foreign talent. In the past, government officials have often reserved that type of restriction for the most sensitive technologies, like weapons systems. Chris McGuire, a former Biden administration technology official who is now a senior fellow at the Council on Foreign Relations, said that the administration's current policy is that A.I. chips can be exported to China, but Canadian green card holders in the United States cannot access leading U.S. models. "That's absurd," he added. The post Trump Administration Reignites Its Feud With Anthropic Over Latest A.I. Models appeared first on New York Times.
In a first, Anthropic pulls two key AI models after Trump administration intervenes
The directive came from commerce secretary Howard Lutnick, Axios reported; Commerce officials did not immediately respond to requests for comment, according to news wires AFP and AP. The Wall Street Journal reported that Amazon CEO Andy Jassy -- whose company is an Anthropic investor -- was among tech leaders who raised concerns to senior administration officials about security risks in Anthropic's most advanced AI models. The shutdown landed first on allies. The European Union, which secured access to Mythos only this month after weeks of negotiation, said the episode reinforced "Europe's need for technological sovereignty". "We take note of Anthropic's statement and are assessing," said Thomas Regnier, a spokesman for the European Commission, which in June unveiled measures to cut the 27-nation bloc's reliance on the United States and Asia for critical technologies, AI among them. Similar concerns are valid for India. The country is the second-largest market for Anthropic's consumer service after the United States, accounting for 5.8% of global Claude.ai use in November 2025, rising to 6.16% by the company's March update, according to its Economic Index. The use is narrow and deep: four states -- Maharashtra, Tamil Nadu, Karnataka and Delhi -- generate more than half the national total, and Indian users turn to Claude for software development more than for almost any other task, mirroring the IT-services industry that anchors the economy. The letter from the government did not state the concern, the company said, but its understanding was that the government believed it had identified a way to bypass, or "jailbreak", Fable 5 so that it could assist hacking. ALSO READ | Anthropic warns of 'faster than society can manage risks' in AI advances, calls for coordinated halt in development Anthropic disputed the basis for the order. It said it had examined the jailbreak method in question and did not believe Fable 5 gave hackers any capability unavailable through other public models, and that none of its testers had found a "universal jailbreak" able to defeat its safeguards across the board. "We disagree that the finding of a narrow potential jailbreak should be cause for recalling a commercial model deployed to hundreds of millions of people," it said. Applied across the sector, it argued, the same standard "would essentially halt all new model deployments for all frontier model providers". Those characterisations of severity are the company's own. The government has not made its reasoning public. But in the days after Fable 5 reached the public, one jailbreak claim circulated widely among security researchers. It came from a pseudonymous figure known as Pliny the Liberator, prominent enough in the field to have been named to TIME's list of 100 most influential people in AI, who specialises in stripping the safety controls from new models within hours of their release. On June 10, his account declared the model "liberated" and said his collaborators had drawn restricted material from it across several categories of harm, among them cyber, chemical and explosives-related content. His account of how offers a measure of how far the practice has moved. The methods were layered: disguising forbidden words by substituting lookalike letters from other alphabets so filters fail to register them; spreading a request across a long conversation until the model's safety checks lose the thread; casting a query as fiction, as academic peer-review or as a document-filing task so the system treats it as legitimate. The approach he rated most effective was to break a dangerous request into harmless-looking fragments, have the model answer each in isolation, and reassemble the pieces afterwards -- assisted, he said, by a second model that had itself been compromised. He cited a well-known methamphetamine synthesis route as an example, a pathway documented in open scientific literature for decades. The suspension is the latest in a sustained run of confrontations between Anthropic and the Trump administration. The company has been at odds with Washington since it declined to let its technology be used in ways it judged unsafe, including for mass surveillance and autonomous weapons; the Pentagon subsequently cut contracts, and the Department of Defense designated Anthropic a supply-chain risk -- a label more commonly reserved for foreign adversaries, which obliges defence contractors to certify they will not use the company's models. That litigation is still ongoing. Anthropic called the order a likely "misunderstanding" and said it was working to restore access, with fuller technical detail promised within a day. Whether or not it succeeds, the episode has handed every government that rents its frontier AI rather than building its own a worked example of what that dependence can cost when the supplier's home capital decides otherwise. "We see this as an opportunity and a proof point on why India should heavily invest in AI R&D. We cannot rely on foreign model be it close or open source ones... IndiaAI mission's initiative is in the right direction, we just need to double down, focus and get sovereign models done," said Abhishek Upperwal, founder of Soket AI. "These events serve as a powerful catalyst for a much larger geopolitical shift. The fact that access to elite, centralised AI models can be disrupted overnight due to vulnerability findings or sudden regulatory shifts highlights a glaring vulnerability for businesses and nation-states alike.For security, strategic autonomy, and operational continuity, countries and corporations across the world cannot rely solely on third-party, foreign-controlled AI stacks. This friction will inevitably and rapidly accelerate the development of independent, sovereign AI models," said Ganesh Gopalan, co-founder and CEO, Gnani.ai.
Forget Billionaire Lists: Elon Musk Is Worth More Than $1 Trillion After the SpaceX IPO
* SpaceX's pop on its trading debut drove Elon Musk's net worth, at least on paper, to over $1 trillion. * Yesterday's billionaire has 4.76 billion shares in SpaceX, about an 11% stake in Tesla, and smaller investments in his other startups Neuralink and The Boring Company. Yesterday's billionaire is today's trillionaire. You can thank SpaceX for that. SpaceX's (SPCX) IPO, which priced at $135 per share, boosted the value of founder and chief Elon Musk's assets, which according to company filings include 4.76 billion shares of the company. By Forbes' estimate, his net worth rose by approximately $1.88 billion overnight to $982 billion. With the stock finishing today around $161, Musk is the world's first trillionaire -- on paper, at least. Forbes' real-time tracker has him at $1.1 trillion. Musk also owns about 11% of Tesla (TSLA), which also rose today and sports a market cap above $1.5 trillion. And he has stakes in two other businesses he founded: brain interface company Neuralink, and The Boring Company, a tunneling startup. WHY THIS MATTERS TO YOU Musk's outsize ambitions to deliver humanoid robotics, build data centers in space, and colonize Mars make his net worth important because it puts a number on his power and influence. SpaceX accounts for the largest chunk of Musk's net worth, or over 70% as of June 11, according to Bloomberg's Billionaires Index. Tesla represents a more modest 17%, the firm's data show. The estimated net worth of the second- and third-wealthiest people comes in far below Musk's: Google (GOOGL) co-founders Larry Page and Sergey Brin are valued at around $294 billion and $271 billion, respectively, according to Forbes. You'd need to combine the assets of the second through the fifth wealthiest to get to just over $1 trillion: In other words, you'd need two Google founders, a Jeff Bezos, and a Larry Ellison to get to Musk-level riches. (That's Amazon's (AMZN) Bezos and Oracle's (ORCL) Ellison, to be clear.) Ellison, lifted by the value of his stake in Oracle, last year briefly could say he was richer than Musk. But if Musk unlocks milestone-linked rewards in his trillion-dollar pay package at Tesla, the gulf between his dollars and everyone else's is likely to grow even wider. This article has been updated since it was first published to reflect the close of trading. Read the original article on Investopedia
Zoho founder Sridhar Vembu reacts to US restricting Anthropic's Fable 5 model, says 'why pay money to ...'
Zoho founder Sridhar Vembu has reacted to the US government's decision to restrict access to Anthropic's advanced AI models, Fable 5 and Mythos 5, saying Indian organizations should focus on open-source alternatives instead of relying on foreign companies. Sharing a post on X (formerly Twitter), Sridhar Vembu said the move shows how technology has become closely linked to national security and sovereignty. Referring to the restrictions, he questioned the need to depend on overseas AI providers, writing: "Anyway, why pay money to people who don't even want to sell to you?".In the post, Vembu said the development highlights the changing nature of global technology competition and argued that India should deepen its own research and development efforts while encouraging the use of smaller open-source AI models developed in India and China. "Globalization is dead and Bharat must find her own way ahead," he wrote.This is big: all access to Mythos and Fable AI models disabled for everyone outside America.First thoughts: 1. Technology is the ultimate weapon. National sovereignty, national security, all of it is now about technology.2. Globalization is dead and Bharat must find her own way ahead. We must keep these two ideas in mind.What can our government do right now? Ensure that orgs in India embrace smaller models, both Indian and Chinese open source ones. With a bit of effort, we can make them work. Anyway, why pay money to people who don't even want to sell to you?We must deepen our R&D. Sarvam has been on it and we have been on it but remember that the latest models cost not only huge GPU budgets to train, the GPUs themselves are restricted. So we can't afford the scale of money (of the order of $100+ billion to even get in the game!) and even if we could come up with the money, we can't get all the GPUs. I would not like to ask the government to fund tens of billions of dollars on this anyway - the money has far better uses.Zoho has been pursuing alternative R&D approaches that are far, far less expensive but by its nature cutting edge R&D takes time and we are patient. I am confident we will get there. Any remaining people in India who have delusions about globalization should wake up now.
