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Theo - t3․gg · YouTube

Is it ever coming back?

A 20-minute investigation into the US government export control that pulled Anthropic's two best AI models offline — and what that precedent means for every developer who builds on frontier AI.

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yesterday
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sincere
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Big Idea

The argument in one line.

The US government's ban on Fable and Mythos establishes that frontier AI capability is now regulated as a strategic weapon, creating a precedent where every future model advance carries the risk of sudden, government-imposed disappearance.

Who This Is For

Read if. Skip if.

READ IF YOU ARE…
  • You build products on top of frontier AI APIs and suddenly realized your stack can be legislated out from under you.
  • You want the most complete factual account of exactly what happened between June 9 and June 24, 2026 with the Fable/Mythos ban.
  • You are confused about why a KYC check would not solve the ban and want a clear explanation.
  • You track AI export control policy and want the legal challenge (Legion lawsuit) and congressional response explained in plain terms.
  • You run non-US engineering teams and are worried about how foreign-national access restrictions affect your workforce.
SKIP IF…
  • You want deep technical analysis of the 'jailbreak' itself — this video takes Anthropic's account at face value and does not independently verify it.
  • You want a neutral, both-sides treatment — the host has a clear point of view and is openly frustrated.
TL;DR

The full version, fast.

The US government ordered Anthropic to disable Fable 5 and Mythos 5 for all foreign nationals, globally, with 90 minutes notice. The trigger was an alleged 'jailbreak' that Anthropic insists is simply intended codebase-fixing behavior. The deeper cause was the SK Telecom controversy, which put the White House on high alert about China accessing frontier models. No KYC solution is technically viable because Anthropic exposes the models over API. Negotiations have stalled, a legal challenge is filed, and a benchmark chart now makes visible the exact capability line the government drew — above it, banned; slightly below it, freely downloadable as open-weight models that no government can confiscate.

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Chapters

Where the time goes.

00:0001:17

01 · Cold open — the 11-day void

Personal frustration framed as a policy breakdown. Two $200/month plans, two Mondays, zero timeline.

01:1702:52

02 · WorkOS sponsor — auth.md

auth.md open standard lets AI agents register for services without filling out forms or passing captchas.

02:5203:33

03 · Timeline recap

June 9 launch, June 12 ban. The host was live-streaming when it hit.

03:3304:52

04 · SK Telecom — the $100M partner that got cut

Before the public ban, White House told Anthropic to revoke SK Telecom's access over alleged China resale. Anthropic complied immediately, which still wasn't enough.

04:5206:03

05 · The jailbreak that wasn't

Government's 'jailbreak' is Fable reading a codebase and fixing software flaws. Anthropic: GPT-5.5 does the same thing, this is intended behavior.

06:0307:44

06 · Why Anthropic didn't see it as a jailbreak

The conceptual dissonance: fixing bugs is what good models do. Patch diff = exploit guide with a dumber model chasing it.

07:4408:24

07 · Scope of the ban

Every foreign national on Earth, inside or outside the US, including Anthropic employees. Karpathy named explicitly.

08:2409:45

08 · Why KYC can't fix this

API exposure means Anthropic's customers would need to verify their users' citizenship. Not viable.

09:4510:37

09 · Negotiations and Trump's changed stance

In-person White House meetings. Trump told Axios he no longer sees Anthropic as a national security threat. But progress has stalled.

10:3711:19

10 · Stalled progress and the interim Sonnet 5 plan

Leaks: government lost interest, negotiations stuck. Anthropic iterating on a dumber Sonnet 5 model to ship something.

11:1913:15

11 · Legion LegalTech lawsuit

43-page IEEPA challenge. Three causes of action: excess export control authority, Berman informational-materials exemption, APA arbitrary/capricious. Canadian devs on a Five Eyes team, locked out.

13:1514:20

12 · Congressional pushback

Bipartisan group of four reps request Commerce explain the legal basis by June 26. Other labs going silent. Anthropic's doom framing implicated.

14:2016:02

13 · The capability cut line — benchmark chart

Fable 5 at 60. Opus at 56. GPT-5.5 at 55. GLM 5.2 (open-weight, freely downloadable) at 51. The 'too tall to ride' line is now a real, visible benchmark threshold.

16:0217:05

14 · The China incentive inversion

China can release open-weight models with no restrictions; the US bans its best closed model. Once you have the weights, the government can't take them back.

17:0517:53

15 · Hegseth and the DoD contradiction

Hegseth tweeted DoD kicked Anthropic out forever while DoD was actively using Mythos in military operations. Courts: his tweet was not a final agency action.

17:5319:57

16 · Long-term implications and close

First time the software industry has had to worry about a tool being legislated away mid-use. Closes with bipartisan congressional statement.

Atomic Insights

Lines worth screenshotting.

  • The US government gave Anthropic 90 minutes to take down its two most capable models or face criminal and civil penalties.
  • The 'jailbreak' the government cited consists of asking the model to read a codebase and fix software flaws — behavior Anthropic says is intentional and GPT-5.5 also does.
  • SK Telecom invested $100 million in Anthropic in 2023 and was still cut off when the White House suspected resale of model access to China.
  • Andrej Karpathy — who is not a US citizen — was among those locked out under the foreign nationals restriction.
  • Anthropic cannot implement KYC to restore access because their API customers would need to verify the citizenship of their own end-users, a data-privacy chain that doesn't exist.
  • The Defense Production Act — a wartime seizure power — was seriously considered by the Trump administration for a hostile takeover of Anthropic as a company.
  • A benchmark chart now shows Fable 5 at intelligence score 60, next-best Opus 4 at 56, and GLM 5.2 (open-weight, freely downloadable) at 51: the ban line is visible.
  • The government's restriction applies to foreign nationals regardless of physical location — a Canadian engineer working in Canada for a US company is banned.
  • Five countries in the Five Eyes intelligence alliance — Canada, UK, Australia, New Zealand — have no carveout; their citizens are still locked out.
  • Pete Hegseth publicly declared DoD had kicked Anthropic out 'forever' while DoD was simultaneously using Mythos in high-stakes military operations.
  • A court ruled Hegseth's supply-chain designation tweet was not a 'final agency action,' meaning it has no binding legal force.
  • The incentive inversion: China can freely develop and release open-weight models anyone can download, while the most capable closed US model is now inaccessible to non-Americans.
  • GLM 5.2 scored close enough to GPT-5.5 that the host called it the first open-weight model where the capability gap no longer felt significant for coding work.
  • Anthropic's AI-safety doom framing — presenting the technology as an existential risk — is named as a contributing cause of the government's high-alert posture.
  • Congress has requested a response from the Department of Commerce by June 26, 2026 explaining the legal basis and evidentiary thresholds used.
  • The software industry has never before had to account for the possibility that a programming tool could be legally removed from production by government directive.
Takeaway

Frontier AI tools are now subject to the same regulatory risk as weapons.

WHAT TO LEARN

The Fable/Mythos ban is the first case where a commercial AI product was treated as export-controlled military technology, and the precedent it sets affects every developer who builds on closed frontier models.

  • A government can now remove your primary AI tool with 90 minutes notice under IEEPA emergency powers, with no public explanation of the capability threshold that triggered it.
  • The 'jailbreak' the government cited is not a bypass technique — it is a model doing what developers want it to do: read code, find flaws, fix them. That behavior is now legally contested territory.
  • KYC-based citizenship verification cannot restore access when a platform sits between a vendor and end-users through an API layer; the data-privacy chain required doesn't exist.
  • Open-weight models are categorically immune to this type of government action: once weights are released, they cannot be confiscated or restricted from users who already have them.
  • The benchmark data now makes visible a real capability threshold — above it, regulatable; below it, freely downloadable. Developers can track that line as a risk signal.
  • Building critical production infrastructure on a single frontier closed model concentrates regulatory risk; the ban is a forcing function toward model diversification or open-weight alternatives.
  • The countries whose citizens are locked out include Five Eyes intelligence partners (Canada, UK, Australia, New Zealand) — the ban is not limited to adversaries.
  • The company that invested $100M in Anthropic in 2023 lost access before the public ban — commercial partnership provides no protection when national security concerns arise.
Glossary

Terms worth knowing.

IEEPA
International Emergency Economic Powers Act. A US law that gives the president broad authority to regulate commerce during a declared national emergency. The Legion lawsuit argues it cannot be used to restrict export of informational materials under an express congressional carveout.
Export control directive
An order from the Commerce Department's Bureau of Industry and Security restricting the export of a product or technology to foreign nationals. Normally applied to physical goods and weapons; this case is one of the first applications to a commercial AI model.
BIS
Bureau of Industry and Security, the Commerce Department division that administered the export control directive to Anthropic.
Defense Production Act
A wartime law allowing the US government to direct private companies to produce goods needed for national defense, including taking control of manufacturing. The Trump administration considered using it to conduct a hostile takeover of Anthropic.
KYC (Know Your Customer)
A compliance process requiring businesses to verify the identity of their customers. In this context, implementing KYC to prove US citizenship status would require Anthropic's API customers to verify their own end-users' citizenship and pass that verification upstream.
Project Glasswing
Anthropic's disclosed initiative to use AI models to proactively identify and patch software vulnerabilities in critical infrastructure — the same capability the government characterized as a 'jailbreak'.
Jailbreak
In AI safety context, a technique that bypasses a model's safety guardrails to get prohibited outputs. The government applied this term to Fable's ability to analyze codebases for exploitable flaws; Anthropic disputes the characterization, saying the behavior is intentional and present in other frontier models.
Open-weight model
An AI model whose underlying weights (parameters) are publicly released and can be downloaded, run locally, and used without API access or vendor restrictions. Once released, a government cannot confiscate or restrict an open-weight model from users who already have the files.
Resources

Things they pointed at.

05:20linkAnthropic statement on the US government directive
03:33linkWired: The Korean Telecom Giant at the Center of Anthropic's Mythos Controversy
09:45linkCNBC: Trump tells Axios he no longer views Anthropic as a national security threat
11:19linkLegion LegalTech v. USA — Case 1:26-cv-02225 (D.D.C.)
13:15linkSam Liccardo press release: Bipartisan Members of Congress Seek Transparency on Frontier AI Export Controls
17:05linkCourthouse News: Hegseth's supply-chain designation tweet ruled not a final agency action
Quotables

Lines you could clip.

05:15
The government has only given us verbal evidence of a potential narrow non-universal jailbreak, which essentially consists of asking the model to read a codebase and fix software flaws.
This is the exact government claim read verbatim from the Anthropic statement — a self-contained news clipTikTok hook↗ Tweet quote
15:31
We now have a line that says, if you're too tall, if you're above this point, you're not allowed to ride. But something just slightly dumber, I can download on my machine and use for whatever the hell I want.
Amusement park analogy for AI capability regulation — immediately gettable without contextIG reel cold open↗ Tweet quote
16:16
I will tell you with 100% confidence, Department of Commerce, you are not getting me to delete any of my models from my computer. When I have the weights, I have the weights. You're not getting them back. You can't export control what runs on my GPU.
Defiant, quotable, clearly addresses the audience, no setup neededTikTok hook↗ Tweet quote
18:03
Every time a new advancement occurs, we have to worry about it being taken away. Imagine a new programming language or a new framework comes out and we get used to building with it. It makes it so we can build better things faster, and then all of a sudden, poof, it's just gone. We've never had to deal with this before as a software development industry.
The closing thesis — standalone argument about regulatory risk in softwareNewsletter pull-quote↗ Tweet quote
The Script

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analogystory
00:02I need to crash out. I did not think this was going to take so long, and I genuinely really miss working with Fable. It's kind of crazy we can get a taste of something that powerful and just have it taken from us with no promise of if we'll ever get it back, much less how long it will take.
00:19We have had some promises throughout this, like when the official press release came out from Anthropic, they promised us that it would take twenty four hours for them to share more details, which never happened. It has been eleven days. That's a lot more than twenty four hours.
00:33Or the managing director of international from Anthropic statement that they are very confident that in the coming days, the models will become available again, which was six days ago. Lack of statements from Anthropic doesn't mean there isn't anything going on, from other members of Congress trying to bully the White House into giving them more information, to actual lawsuits from customers of Anthropic who were using the Fable model for their work, suing the government for these restrictions, To crazy leaks about how this is affecting other labs, with g b d five six potentially being delayed until mid July.
01:03This is unprecedented, and it's a huge shift in how we need to think about our tools. So where is this all going?
01:09Are we all gonna have to move to open weight models so the government can't restrict us? Is this the end of AI development as we know it? Is this the end of US dominance in AI?
01:17Where is this going? It's really hard to know, and I'm not going to speculate or guess, but I'm gonna do my best to explain where we are now and what the impact is. All of that said, if I'm gonna have to run models locally, I'm gonna need way more GPUs, and I can't afford that right now.
01:31So let's take a quick break for today's sponsor. You've already heard me talk about today's sponsor. It's WorkOS.
01:35Support millions of users for free and it's a great platform, but I'm not here to talk about you or your millions of users. I'm here to talk about agents because agents have a really rough time signing up for services. And that's why WorkOS put on a new open standard, AuthMD.
01:48And the standard is actually really, really compelling. It allows for agents to sign up for services on behalf of a user. The agent can register a full account by itself, or you can make an easy way for the agent to register and get claimed by a user.
02:00Both of these are built into the standard. There's a reason why companies like Cloudflare, Firecall, Resend, More are already working closely with WorkOS on the spec, because it's so helpful to let agents go sign up and do things without having to go clear some weird form or hope computer use and codex works properly for once.
02:17All of that is nonsense, and all of that nonsense existed because agents had to go down the same paths users did because we built our auth platforms around people. And to be clear, that wasn't a mistake. People should be the core of auth on most services, but getting an agent to fill out a form and pass a captcha correctly is not the path we should have ever taken.
02:34And now we have a simple standard that makes a lot of sense, but admittedly would be hard to add to most auth providers. Hopefully, you listened to me and my previous WorkOS ads because if you did, you're in luck. Enabling AuthMD in your WorkOS apps is literally one click.
02:47If you want enterprises and agents to use your service, look no further than soydev.link/workos. Let's start from the top. Fable five and Mythos five officially dropped on June 9.
02:57They were incredible. I put out a video showcasing just how cool they were. I was actually live streaming showing off some of the cool things you can do with these models when the ban occurred, because the ban occurred on the twelfth, three days later.
03:09I was running two $200 plans just to maximize my usage of Fable, because I was so impressed with it, and then it was gone. And I will be real with you guys, I honestly assumed the ban would last the weekend, and we would get it back the following Monday. It's been eleven days since.
03:23We've passed two Mondays since. We still don't have the model back. We don't even have a timeline for when we'll get it back.
03:29The alleged start of the drama didn't actually come from the initial reporting of jailbreaks. It came from a company called SK Telecom, which is a South Korean company doing Internet stuff. SK Telecom's a really heavy user of Anthropic models.
03:41They've actually went as far as to invest over a $100,000,000 into Anthropic. It was alleged that when they got access to Fable and Mythos, that they were reselling it to customers in China who are banned from having access. Earlier in June, shortly after Anthropic announced Project Lastwing's latest expansion, the White House asked Anthropic to revoke SK Telecom's access to Mythos according to a person close to the AI lab.
04:02The company immediately complied, sources told Wired, and the US government did not threaten to put export controls on the model at the time. This is really important. Anthropic was told by the White House to ban this company, and they did.
04:16But this definitely put the government on high alert about the capabilities of the model and the desire other countries had to access it. And it is a known fact that China is trying to do whatever they can to access these models in order to get enough data to distill and make their own things of similar capabilities. And this is a huge thing for Anthropic to just blindly comply with.
04:36As I mentioned before, this company invested a 100,000,000 into Anthropic back in 2023, when that was like a meaningful percentage of the company. And part of that was so they could do a commercial partnership in order to make models better telecommunication work.
04:48Anthropic hard cutting them off is kind of crazy, but that's how hard they were trying to make sure the US government knew that they would do what they were told to do. And it seems like it wasn't enough, because these reports of a jailbreak that came from Amazon and made their way all the way over to the government resulted in the ban.
05:06Recent reports have indicated that Amazon has actually tried to contact Anthropic about this, and Anthropic refused to respond. Why would Anthropic not respond and not acknowledge these jailbreaks? We could debate the reasons why all we want, but it really comes down to this paragraph from Anthropic's announcement.
05:23The government has only given us verbal evidence of a potential narrow non universal jailbreak, which essentially consists of asking the model to read a code base and fix software flaws. Our understanding is that one potential jailbreak was shared with the government.
05:36We reviewed a report that we believe is the basis of the government's directive and validated that the level of capabilities displayed there is widely available from other models, including OpenAI's GPT 5.5, It is used every day by the defenders who keep systems safe. This is really key.
05:51It seems as though the jailbreak wasn't like, oh, if you use these special characters or these special phrases, you can get the model to hack things when otherwise it would say no. It seems like the behavior is actually intended, where if you have a code base and you have a model, and you ask the model to help you fix the code base and improve it, it should do that.
06:10But of course, as I've mentioned in many videos covering security stuff, having the code that fixes a bug is also kind of giving your models a guide on how to exploit the bug. And you can take a very dumb model and it hands it a diff that patches an exploit and ask it to recreate the exploit or show you how you would take advantage of it, and they will.
06:28Especially now that we have open weight models like GLM 5.2, which are getting close to GPT five point five's capabilities. The possibility to take advantage of these hacks and take advantage of the smartest models, finding fixes to open source work in order to hack it with open weight models is a very real pipeline we do need to be concerned about.
06:47All of that said, the best fix is to secure the software we're worried about, to use models to find these exploits, patch them, and ship those patches ASAP before these capabilities are more widely available. And this is what Anthropic was doing with Project Glasswing. I also think the dissonance here is a big part of why Anthropic is struggling so much.
07:06They are mostly used to talking to people in the AI space. Anyone working at Anthropic spends the majority of their time talking about, thinking about, and using AI. They know the purpose of these tools, especially the developer focused stuff, is to work in a code base and solve real problems in those code bases.
07:22And I can guarantee that pretty much no one at Anthropic would be interested in shipping a model that couldn't fix a codebase. And that's why they didn't see this as a jailbreak. And that term, jailbreak, has been absolutely destroyed as a result of all of this.
07:36Because what the government sees as a jailbreak, Anthropic sees as intended behavior, and the world sees as a very confusing scenario. But as Anthropic mentions here, there's lots of other models that can find exploits the same way, as they call out here, including GPT 5.5.
07:52This call out might have been a bit dangerous of them though, because from what I've been seeing, lots of other labs are now scared that their model's going to get banned or know your customer as well. Because remember, this isn't a formal ban. The government's restriction isn't that they can't use or sell the model, it's that they are not allowing any foreign nationals.
08:12So people whose citizenship isn't with The United States, regardless of where they are, they cannot use it, even including anthropic employees. This means that people like Carpathi have been restricted from access to the model.
08:25So why haven't they done that? Why don't we have the model back now? I've seen a lot of misinformation flying around.
08:30It's part of why I was motivated to make this video, because a lot of people seem to think that Anthropic's going to put out the know your customer, like verify your identity and now you can use the model thing. They can't really. And there's a lot of layers to it.
08:43The biggest one by far is that they also expose this model over API. So if I wanna integrate Fable into my product, I would now have to do my own verification of my users to make sure they're US citizens too and somehow forward that along to Anthropic. That type of data privacy chain is not really viable and I understand why they don't wanna implement it.
09:02They could hypothetically force you to auth through this to use it with Claude code, and then also be really aggressive about making sure people who aren't you using it get banned really fast. That's not gonna be a reliable enough solution.
09:16They know that, you know that, let's be real. So they've decided to keep it on hold until the ban is lifted, which has the terms of they need to fix the jailbreak. Initially, was not going well because Anthropic just seemed to not really know how to talk to the White House.
09:32But then they started sending employees there in person to negotiate, and the negotiations seemed to finally be going well. It went well enough that in an interview, Trump actually told the interviewer that he doesn't see Anthropic as a national security threat anymore.
09:46That he did, but that has changed. Thankfully, Trump doesn't seem interested in using the Defense Production Act, which is a wartime act that allows the government to take over manufacturing in order to produce things we need to defend ourselves, like weapons or fucking tanks and whatnot. He was sincerely considering using that to do a hostile takeover of Anthropic as a business.
10:06He calls out that he has the power to use a lot of things, but he's not sure he has to do that. So let's hope that's the case. You can also see Anthropic kissing ass here, because they've learned that they have to do that.
10:18They have to be liked by the admin if they wanted to get out of this. To which they said, we are grateful to the administration for their ongoing partnership in working to get this matter resolved as quickly as possible. We remain committed to working alongside them towards our shared goal of protecting critical infrastructure and making sure The US leads in AI.
10:34But according to leaks, their progress has stalled. They have not been able to get any headway, and it seems like the government is just kind of not moving and has lost interest in this issue, which means getting unbanned is gonna be a lot harder. And according to these leaks, they're going as far as iterating on Sonnet five and like getting a new model out that is a five era model, but much cheaper and dumber in order to just get something out for these customers who are hurting.
11:00And these customers are hurting a lot. They're hurting so much that they are suing. This is a 43 page lawsuit that has been filed specifically against The United States Of America, the Department of Converse, Howard Lutnick, who's the guy who ok'd this ban and pushed for it, Jeffrey Kessler, the Bureau of Industry and Security, Executive Office of the President, and 10 additional defendants.
11:20This is a challenge to an unlawful directive that exceeds every source of statutory authority on which it could conceivably rest. On June 12, the federal government ordered Anthropic to immediately disable two of its most capable artificial intelligence AI models, Fable and Mythos five, for every foreign national on Earth.
11:38I love capital Earth as a call out here. This is quite a legal complaint. The order reached anthropic by letter from Commerce's BIS, gave the company ninety minutes to comply under threat of prompt criminal and civil penalties, and purports to rest on the export control authority that Commerce and its BIS administer.
11:55Within hours, hundreds of millions of users, including citizens of The US's closest allies and Anthropic's own employees, lost access. The government is not authorized to do what it did. I will say the sheer volume of EmDashes here does suggest AI helped write this.
12:10Probably not Fable though. This lawsuit isn't from Anthropic. This is from Legion, a customer of Anthropic.
12:15They are a US based AI native litigation tech company that builds drafting and case management tools for attorneys on top of frontier AI models. Legion is a commercial customer of Anthropic with a contractual right and license to access and use Fable five model, which was integral to building and operating their platform.
12:31Legion's software development team includes Canadian nationals working remotely from Canada, a Five Eyes intelligence partner and a country group a five nation under the defendant's own export administration regulations. When the directive took effect, Legion lost the latest tools at the center of its development instantaneously.
12:47They have three causes of action here. All of these are claims that based on current law, the government doesn't actually have the right to ban commerce in the way that they did here. The use of the International Emergency Economic Powers Act is not valid according to this lawsuit, allegedly.
13:03The reason is because it violates express prohibitions and mandatory prerequisites that the Congress put into that statute. Specifically, the president's not allowed to prohibit the export of information and informational materials in any format or medium of transmission. It is entirely withheld in this act, the act that was used to enable the spam.
13:20As I hinted at earlier, things are bad enough here that there's a bipartisan congress group trying to push the White House to explain what the hell is going on. Congressman Sam Liccardo, Jay Aubernolte, hopefully I got that right, Ted Lou, and Scott Franklin, two Dems and two Republicans, are all requesting that the Department of Converse provide greater transparency regarding the June 12 decision to impose export controls on Anthropics Claude Mythos five and Fable five artificial intelligence models.
13:47The lawmakers raised concerns that the action could set a significant new precedent for frontier AI regulation. This already appears to be the case. It seems as though labs that are able to release models of these capabilities have been really quiet.
14:00There have been almost no posts from the OpenAI guys for a few weeks now, and I do honestly suspect it's because of this. And I'm not just blaming the government here. I would argue that Anthropics fear mongering has put us in this position.
14:10The ways they have presented to the world that AI could destroy us all has put people on high alert, which has resulted in this type of high response. But there's another issue that I'm scared about here, and that issue is here.
14:25According to artificial analysis, Fable five is the best model ever, intelligence capabilities wise, scoring a 60 when the next highest was Opus with a 56. This is also probably even better than shown here, but they had a bunch of instances where Fable wouldn't respond and they got fallen back to Opus. This is a combination score between Fable and Opus, but it's still unbelievably high.
14:48Historically, the order of scores here is Anthropic or OpenAI model, then you have whichever isn't the one before it, then you have Google or another OpenAI or another Anthropic model, and you keep going down a bunch, and then eventually you'll hit open weight models much further down the chart. But you might notice something different here.
15:06GLM five two isn't that far down the chart. GLM five two is a really good model. They shouldn't have called it five two, honestly.
15:15They should have called it GLM six, because it is a significant jump in the capabilities we would expect from open weight models, especially for code work. It's the first time I've used an open weight model, and like, didn't feel as though I was missing out too much compared to the current available options.
15:31That said, it's mostly caught up to like five four, and is getting there with GPT five five. Fable was another tier above. So what's scary about that is we now have a line that says, if you're too tall, if you're above this point, you're not allowed to ride.
15:45You're not allowed to sell that model. You're not allowed to put it out in the public without crazy restrictions and all of these expectations that the government has now set. But something just slightly dumber, I can download on my machine and use for whatever the hell I want.
15:59That is a weird structure. That's a weird system. And it's going to have massive impact, especially around who wants to build here.
16:07If in China, can just build whatever, you can steal all the data you want in the world, and put out an open weight model anyone can download and use for whatever they want, go nuts. You wouldn't download a file the government said is illegal, right? I will tell you with 100% confidence, Department of Commerce, you are not getting me to delete any of my models from my computer.
16:26When I have the weights, I have the weights. You're not getting them back. You can't export control what runs on my GPU.
16:32Good luck, have fucking fun. At the same time though, this means that the models that have the fewest restrictions are the ones that have the incentives that we're trying to prevent from dominating.
16:43I personally don't want models that are censored by the Chinese government to become the norm because models censored by the US government aren't accessible at all. That's a really bad precedent, and it's being set as we speak. It is at the point where both Republicans and Democrats are confused and frustrated in trying to get more information out.
17:00If you're wondering why we're not getting better official statements out of the government, it's because the government's stance here is pretty absurd. Pete Hedgeseth did make this statement the day after the ban went live, saying, three months ago, the Department of War kicked Anthropic out of our building forever.
17:15Every passing day proves why that was the right move. Even though they were literally using Mythos just a few days before this ban, they were using it in high stakes military operations, as the community note has called out. For what it's worth, it does just kind of seem like Pete's thing is stepping all over the things he's supposed to be allowed to do, and going way further than he actually can.
17:36The feds have came out and said specifically that his statements are not actual final agency actions, he just likes talking shit. But in a world where he is talking shit and informing the White House and the Department of Commerce on what should or shouldn't be banned, we end up in scenarios like this.
17:50And this is no longer just like, oh, fuck Anthropic. This is now going to impact all future releases. Pretty much everyone I know working on or with AI is scared right now of what this means long term.
18:03Every time a new advancement occurs, we have to worry about it being taken away. Imagine a new programming language or a new framework comes out and we get used to building with it. It makes it so we can build better things faster, and then all of a sudden, poof, it's just gone.
18:15We've never had to deal with this before as a software development industry. We've never had to deal with this before as a technology industry even. It's kind of crazy that this is a worry we now have to have, and the companies who are developing these things have to worry about as well.
18:28I could end on my own statements, but I'd much rather quote the congressmen who are pushing back on these horrible decisions. Regardless of the specific circumstances surrounding the individual model, the practical effect of such an action appears capable of substantially restricting the distribution, deployment, and use of advanced AI models, including within The US, and may establish a precedent with significant implications for other developers, researchers, users, and investors throughout the AI sector.
18:56Given the importance of these systems to The US economy and national security, we, as members of the Congress, have a strong interest in understanding the basis for actions that could materially affect the availability and deployment of Frontier AI capabilities.
19:11We We are particularly interested in understanding the standards criteria and evidentiary thresholds the department applied in reaching its decision, as well as how those standards may be applied going forward. They've requested a response by June 26, and believe me, I will be covering that when it does happen, if it does happen.
19:29I cannot fathom that this model is still banned, that we haven't made any progress or gotten any real updates beyond all of these attempts to get more information, I can't believe I'm out here defending Anthropic again, because in a lot of ways, this is their fault. But this is a really bad precedent, and I'm scared of what it could mean for the future of AI.
19:47I'm gonna go back to staring at the PRs that Fable made, wishing I could ask it more questions and hopefully ship something. Thanks for watching this as always, and until next time, peace nerds.
The Hook

The bait, then the rug-pull.

Eleven days. Two missed Mondays. A press release that promised details within twenty-four hours and then went silent. The host opens by converting personal frustration into a research project: what actually happened, who is to blame, and whether the model is ever coming back.

Frameworks

Named ideas worth stealing.

14:20concept

The capability cut line

Artificial Analysis benchmark chart made visible: Fable 5 at 60, open-weight GLM 5.2 at 51. The government effectively drew a line — above it, subject to export control; below it, freely downloadable. The line is now a real threshold builders must track.

Steal forAny argument about the regulatory risk of building on frontier closed models vs. open-weight alternatives
08:30concept

The API KYC impossibility

If Anthropic implements KYC to verify user citizenship, they need their API customers to forward that citizenship data — which those customers would need to collect from their own end-users. This creates an unworkable multi-party data-privacy chain.

Steal forExplaining why simple compliance solutions fail when a platform sits between a vendor and end-users
16:03concept

The China incentive inversion

Banning closed frontier models while leaving open-weight models freely downloadable creates the opposite incentive to what the government intends: the models with the fewest restrictions are the ones the US is trying to keep out of Chinese hands.

Steal forAI policy arguments; any discussion of the difference between restricting closed-source vs. open-weight AI
CTA Breakdown

How they asked for the click.

VERBAL ASK
19:43next-video
They've requested a response by June 26, and believe me, I will be covering that when it does happen.

Clean teaser for a follow-up video. No product pitch. No subscribe prompt. Just a news hook.

FROM THE DESCRIPTION
Storyboard

Visual structure at a glance.

open
hookopen00:00
timeline
setuptimeline02:52
jailbreak
valuejailbreak04:52
lawsuit
valuelawsuit11:19
benchmark
valuebenchmark14:20
close
ctaclose18:03
Frame Gallery

Visual moments.

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