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Posted by Pragmata 18 hours ago

Department of Commerce has lifted export controls on Claude Fable 5 and Mythos 5(twitter.com)
881 points | 589 comments
digitaltrees 20 minutes ago|
I am migrating my company to private open source AI and building custom tooling, orchestration, an IDE and harness around it. The commercial labs have show it’s far too risky to build on top of them.

With the labs moving into the app layer every interaction with the API related to product development or innovation is data they will steal and use to compete against you by adding those features to their everything apps. No one would hire a knowledge firm (law firm, accountants, management consultants) if they could steal your information and give it to your competitors. Their actions have remained me that we can’t tolerate that with AI systems.

With spaceX buying cursor and Google buying windsurf, and gathering all the developer interaction as training data, there is too much risk that development process itself will be rug pulled.

nlh 18 hours ago||
Here's a copy of the letter that Commerce sent to Anthropic (note who it'a NOT addressed to...)

Source: https://x.com/AndrewCurran_/status/2072103733715194048?s=20

-------

June 30, 2026

Tom Brown Chief Compute Officer Anthropic 548 Market Street San Francisco, CA 94104

Dear Mr. Brown:

Since the issuance of my previous letters, dated June 12, 2026 and June 26, 2026, Anthropic has taken steps in close coordination with the U.S. government to address the risks associated with Claude Mythos 5 and Claude Fable 5. Among other things, Anthropic has agreed to proactively detect and address security risks associated with the models; to work diligently with the U.S. government on protocols and standards and releases for Mythos, Fable, and future models; and to inform the U.S. government of any malicious activity.

In light of these actions and commitments, as well as the Bureau of Industry and Security's evaluation of the diversion risks now presented by Claude Mythos 5 and Claude Fable 5, the controls in the June 12 letter are withdrawn. A license is no longer required for the export, reexport, or in-country transfer, including deemed export or deemed reexport, of the Mythos or Fable models.

Commerce reserves the right to reevaluate the decisions made in this letter and the necessity of reimposing a license requirement, should circumstances change or should Anthropic fail to adhere to its commitments.

If you have any questions about this letter, please contact me or the Under Secretary of Commerce for Industry and Security, Jeffrey Kessler, at (202) 255-1864.

Sincerely,

Howard W. Lutnick

------

nickandbro 17 hours ago||
Jeff is now going to have to change his number. Can’t imagine all the calls or messages he must be getting now
killingtime74 14 hours ago||
You don't think public officials have official numbers?
xg15 1 hour ago||
Yes, but the numbers probably don't go viral on X, usually.
Jblx2 18 hours ago|||
For those who haven't been following this closely, who is the missing addressee?
nlh 18 hours ago||
Dario Amodei (Anthropic's CEO) had previously been directly liaising with the government and apparently it wasn't going well.
Avicebron 17 hours ago||
Any news why?
s3p 17 hours ago|||
They don't speak the same [proverbial] language essentially. Dario and the WH talk about this stuff completely differently.

https://archive.is/9k7qt#selection-2001.41-2001.49 https://archive.is/dybOE

qalmakka 10 hours ago|||
To be fair is quite hard to actually understand what this White House is saying most of the time
estearum 3 hours ago||
Incoherence is a feature, not a bug, of authoritarians

(not necessarily implying it's conscious strategy, authoritarians tend to be actual incoherent dumbasses)

Aeolun 16 hours ago|||
I'm fairly certain which side of the conversation I'd have trouble understanding. I have trouble understanding it all the time.
mcherm 1 hour ago||
I frequently have trouble understanding both sides!
nolok 7 hours ago||||
He's the one who led the choice to refuse working with the gov for surveillance or defense, and it led to that block right after.

I have no proof but I assume he believes at least some of what he's preaching (which doesn't mean he won't fold, at the end of the day it's an american company anyway).

Brown is probably more of a diplomat, "Sure, but not now" goes a lot further than "No, never", though it has the issue of kicking the can down the road.

Matl 6 hours ago||
> He's the one who led the choice to refuse working with the gov for surveillance or defense

This is false and just Anthropic being good at PR. He's happy to let it be used for airstrikes on Iran for example, just wants to keep a human in the loop. So the AI will say 'I am extremely sure this building (a girl school) is a military base' and the human will say 'I am being asked to carry out more airstrikes and who am I to question AI' and will bomb a school with Amodei then washing his hands.

addandsubtract 5 hours ago||
You've mentioned the Iran airstrike twice now. Do you have a source for them using an LLM for their "intelligence" / decision making?
Matl 3 hours ago|||
https://www.youtube.com/shorts/7DOQlIQxz5M?cbrd=1
nolok 3 hours ago|||
You can find a source for it being used here [1] though parent is misrepresenting it either on purpose or by lacking understanding, I stand to my point above, the timeline is

1. the US used it, in venezuela then to prepare Iran

2. it became public through journals reporting it, but they didn't really hide from it afterwards and told explicitely what and who they used, naming anthropic

3. Diego (the CEO) answered by saying this violate terms and the US is not allowed and should stop that immediately, publicly

4. They have a talk, and while concessions are made it blocks not about war with ennemies but about surveillance at home, which Diego refuses to let go

5. Trump reacted by calling Anthropic a "Radical Left AI company run by people who have no idea what the real World is all about"

6. Peter Hegseth annonce they will stop using it but asked for a stop gap deal "Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition."

7. Open AI annonce a deal with the governement four and a half HOURS later, with totally cool safeguards "We think our agreement has more guardrails than any previous agreement for classified AI deployments, including Anthropic's", journals note that "OpenAI's new Pentagon deal doesn't explicitly prohibit collecting Americans' publicly available information - a sticking point that rival Anthropic says is crucial for ensuring domestic mass surveillance doesn't take place"

8. In totally unrelated news, Anthropic new models get banned for exports in a move the US has never done before, no other company has their models banned

And now

9. Anthropic change the person talking with the gov to Brown

10. After a bit anthropic models start being unbanned

[1] https://www.theguardian.com/technology/2026/mar/01/claude-an...

Matl 3 hours ago|||
What part am I misrepresenting, Anthropic CEO explicitly states he's ok with military use as long as there's a human in the loop[1].

He states the Iran school strike 'doesn't even violate our red lines'.

Can you clarify what am I misrepresenting please?

1 - https://www.youtube.com/shorts/7DOQlIQxz5M?cbrd=1

addandsubtract 3 hours ago|||
Thanks for the break down. I somehow missed the 2nd point. Crazy that they just used an LLM like that.
nolok 3 hours ago||
At the time they needed a scapegoat to explain why they bombed a school so I guess they thought it was the lesser problem
ebbi 17 hours ago|||
Probably didn't kiss ass as much as most other tech CEOs.
bredren 14 hours ago||
I presume this was one of the lowest points of Tim Cook’s career: https://youtu.be/kSAGUjY2HIs?is=my5VbCBB5Ku-MlLX
genxy 10 hours ago||
Probably wishing it was twice as big, twice as gold, has that Chinese ram deal riding on it.
itomato 7 hours ago|||
If X is their platform, let them choke on it.
woeirua 18 hours ago|||
How many people are going to call Jeffrey Kessler? lol.
naturalmovement 16 hours ago||
[flagged]
dang 1 hour ago|||
Could you please stop posting unsubstantive comments and flamebait? You've unfortunately been doing it repeatedly, and we already asked you a couple days ago.

If you wouldn't mind reviewing https://news.ycombinator.com/newsguidelines.html and taking the intended spirit of the site more to heart, we'd be grateful.

philovivero 14 hours ago||||
[flagged]
electriclove 15 hours ago|||
Ha! But sorry, Dario has failed at this part of the job. It’s good that Tom is there and that there is plenty of other strong talent there.
naturalmovement 15 hours ago||
Dario's job is to be a cheerleader.

He likely does not have the domain knowledge nor is authorized to be the recipient of such a letter.

And that's ok. His role is to hire others competent in export matters. It's a learning experience for them.

nl 14 hours ago||
I think you are missing some context here.

One of the contributing factors that led to this control in the first place was that the commerce department couldn't get Dario on a call immediately:

"Then White House started reaching out to Anthropic to speak with Dario Amodei, who was at a wellness retreat.... When Amodei was finally available past 1pm, he had three tense phone calls with a combo of ppl including Cairncross, Bessent, Lutnick, Kessler, Will Scharf, Richard Walters, and Walker Barrett."

https://x.com/SophiaCai99/status/2065942612293365948

Anthropic has disputed that Dario was at a wellness retreat but both sides seem agree that it seemed to be a problem (and it is very apparent that Dario's response made things worse).

knollimar 7 hours ago|||
Is it actually a problem or are they just choosing their battles by not calling out 24/7 access to decision makers as unreasonable?
naturalmovement 11 hours ago|||
That link really sheds light on things.

It's shocking to me that Anthropic seems to be run with the same managerial chaos as depicted in early seasons of Entourage.

Dario may be a genius, but when it comes to running a big business — which involves dealing with governments and regulators — it's like he just fell off a turnip truck.

nl 11 hours ago||
Yeah, broadly agree. See my comment on the other story: https://news.ycombinator.com/item?id=48742711
softwaredoug 15 hours ago||
The real problem in all this is lack of predictability. The White House is just making it up as it goes along. Investors, customers don’t know what the process is and can’t plan.

In the end, we need actual laws that tell the market what kinds of models get paused / analyzed, how long that pause can be, etc.

Otherwise there’s no standard and it will be easily abused and prevent investment in US AI companies.

macintux 1 hour ago||
> In the end, we need actual laws that tell the market what kinds of models get paused / analyzed, how long that pause can be, etc.

A: Congress used to be able to establish regulatory authority in the executive branch to manage details like this, because writing a useful law that covers this in any detail would be impossible. Thanks, GOP-stacked Supreme Court, for wrecking that.

B: This administration doesn't give a rat's ass about the law, so none of this would make a difference anyway.

Tangurena2 4 hours ago|||
> lack of predictability

That's been the problem both times this administration was in power. Some people like to call it 4D Chess (because they don't understand it and their conspiratorial thinking requires there to be "a plot" or "a plan"). The last person to get to the ear of this President is the cause of any new "process" or "policy". It is just whim. Like a dog seeing a squirrel. Something shiny has attracted his attention. And that new squirrel gets chased.

sv123 15 hours ago|||
Just wait till Anthropic and OpenAI are public, the admin is going to be manipulating the shit out of those with model approvals and denials.
swingboy 9 hours ago||
“Anthropic wants to MAKE A DEAL!”
NoImmatureAdHom 1 hour ago|||
Yabbut...we sort of need to make it up as we go along. This is unprecedented! Thinking machines!

That said, there is stupid "making it up" and smart "making it up". But it does need to be made up.

tjpnz 12 hours ago|||
Applies to all industries with the memory care patient currently occupying the White House. Passing laws won't help when they can be effectively struck down until the next sitting of the SC.
liberlume 13 hours ago|||
[flagged]
tiahura 14 hours ago||
There are laws and regs. Just because you’re not familiar with the Defense Production Act (50 U.S.C. § 4511 ), Export Control Reform Act, 50 U.S.C. § 4812 and others doesn’t mean that they don’t exist and apply.
bluepeter 14 hours ago||
Fable 5 apparently can't be used for coding? (This is from Anthropic's announcement.)

> After a series of productive conversations with the US government, we're redeploying the model with a new set of classifiers to target and block more cybersecurity tasks. In the near term, some routine tasks like coding and debugging will fall back to Opus 4.8.

Edit: the above was from their tweet announcement at https://x.com/AnthropicAI/status/2072163884430229756 ... the associated blog post at https://www.anthropic.com/news/redeploying-fable-5 suggests it was just poorly written and coding can still be done with Fable, just with overeager bouncing of "some routine coding and debugging tasks" to Opus.

matheusmoreira 13 hours ago||
> Fable 5 will be included for up to 50% of weekly usage limits through July 7, after which it will be available via usage credits.

> The new classifier also comes at the cost of flagging benign requests more often during routine coding and debugging tasks.

Here's Fable 5, the strongest model. Actually try to use it to harden your code and it turns into Opus 4.8. You have seven days to use it, and only half of that time's worth in actual usage. Enjoy.

Looks like it's going to be a thoroughly frustrating experience, even worse than initial rollout. For subscription users, the situation is almost indistinguishable from the export ban.

jm4 4 hours ago|||
It was already frustrating to use before. I wanted to review my own code for OWASP top 10 kind of stuff and it kept refusing. It repeatedly popped up scary warnings about how I was violating TOS. I had to go through quite a few iterations of that prompt. When I finally got it to work it burned through all my remaining usage on a single run.

I won’t even bother with it if they’ve made it even more frustrating. Instead, I’ve been using a combo of Opus 4.8, GLM 5.2 and DeepSeek v4 Pro. Then I have Opus synthesize and verify the reports from all 3 and make the fixes.

siva7 12 hours ago||||
So fable will jump more often to Opus than it already did on original release? Working with fable felt like having to constantly fight against your work tool. Frustrating. Now they're making it even more frustrating.
matheusmoreira 12 hours ago|||
For reference, here's what my experience with Fable turned out to be like:

https://news.ycombinator.com/item?id=48466313

Just a code review of my own project. Downgraded to Opus 50% of the time while evaluating the critical I/O and memory safety parts, the exact thing I wanted it to do.

And now it's gonna be even worse.

solenoid0937 12 hours ago||
I mean what do you expect when covering memory safety topics with a model that's not allowed to cover security topics? This seems totally expected. It'll be the same when 5.6 is released.
matheusmoreira 12 hours ago||
> what do you expect

I expect the strong cybersecurity model to help me strengthen the cybersecurity of my project.

> not allowed to cover security topics

They said it wouldn't be usable for offensive purposes. This is the opposite of that.

solenoid0937 12 hours ago|||
You don't have the strong cybersecurity model. That is not Fable. It never was, even at release.

The cybersecurity model is Mythos, which was never made publicly available. It is only available to a list of US government approved companies.

> They said it wouldn't be usable for offensive purposes

No, they said Fable would refuse for cybersecurity and offensive purposes. You are conflating Fable with Mythos.

remus 10 hours ago||
They're very similar models though, just with different safeguards and restrictions in placae around particular use cases.

I guess the underlying issue is that there is this model that is very capable, but it's being hobbled because of a fear of abuse. It may well be justified, but for a legitimate user any restriction just makes it a worse product and after all the puffery around how good it is (and some practical experience of how good it is) it's a pretty shit experience. "Here's our best model, no you can't really use it".

wongarsu 6 hours ago||||
Fable is very strong for finding bugs. But you are explicitly not supposed to use it for cybersecurity. Even in the initial rollout I had it refuse and fall back to Opus when implementing a change password function
matheusmoreira 25 minutes ago||
> Fable is very strong for finding bugs.

That's what I was trying to use it for. Find bugs. Anthropic just refused to let it find the memory safety bugs in my C project.

csomar 11 hours ago|||
Is there a difference though?

Fable 5, harden my openssl project. Then you use the diffs/summary to find out what the bug is for your exploit.

matheusmoreira 9 hours ago||
They're going to be verifying people's identities anyway. Why not put that bit of security theater to good use for once? I'm the author of project X, now let the model work on it, would you kindly?

This "only super special corporations get the model" nonsense is dividing society into haves and have-nots.

dbbk 6 hours ago||||
Oh come on Opus is perfectly good enough for any coding task. You will barely notice when it drops down from Fable.
aqfamnzc 5 hours ago||
Why use Fable at all then?
truthbe 4 hours ago||
Still waiting for the answer.
sroussey 12 hours ago|||
Donald Trump named David Sacks the White House AI and crypto czar. I guess you know whom to thank.
SXX 12 hours ago|||
Wasnt it Anthropic marketing their models as very very smart and dangerous?
meowface 11 hours ago||
I can't roll my eyes hard enough at all the people who say this shit about Anthropic every day. I know I'll get downvoted. I know it's lame to complain about future downvotes. I don't care anymore.

Anthropic was correct in their assessment and early warning of Mythos's capabilities, and they did this rollout pretty well. They were not hype marketing. They were being genuinely cautious and honest.

The Trump admin was largely unreasonable with the sudden export control. (Though not entirely unreasonable.) The export control also had not much to do with Anthropic's pre-release warnings. See: GPT-5.6 currently being held up by the federal government.

Matl 2 hours ago||
> Anthropic was correct in their assessment and early warning of Mythos's capabilities, and they did this rollout pretty well. They were not hype marketing. They were being genuinely cautious and honest.

So what prevented them from putting in the sort of safeguards they ended up putting in without hyping it for months prior as being so good, it's too dangerous?

meowface 1 hour ago||
I'm not sure what you're saying. They spent ages adding guardrails to Mythos. Then they spent ages creating a whole new even more guardrailed version of Mythos called Fable. Then they added tons of classifiers so API requests to Fable would get rejected even if you ask a question like "what is a molecule". They put the thickest layer of bubble wrap around the model of any model in history. And then just today they made the classifiers even much more extreme than at the initial launch.

If they were truly honest in their beliefs of the potential risks of this model, how would their behavior have differed? I would expect exactly the behavior we see, if they were being honest in their belief.

Also note Dario here saying they shot themselves in the foot commercially with how they handled the rollout of the model - you can tell by his reflexive reaction how ridiculous he considers the accusation: https://youtu.be/v1wZwxY3CMg?t=2103

Matl 14 minutes ago||
I am saying they could have not said anything about it being too dangerous etc. and just released Fable as a new model once the safeguards were in place and Mythos to trusted orgs as they did.

Instead they choose to hype for months about having a model that's simply 'too dangerous to release'.

In other words, why hype it beforehand instead of just quietly add the safeguards they ended up with anyways and release then?

jefftk 6 hours ago|||
Sacks has been out since March
davidhs 10 hours ago||||
> Looks like it's going to be a thoroughly frustrating experience, even worse than initial rollout.

Honestly, why bother with it? They are effectively just releasing the model in-name, but we just get Opus 4.8.

matheusmoreira 10 hours ago||
Yeah. I'm gonna ask Fable to code review my other projects and I guess that's it.
yeeetz 12 hours ago||||
they might as well not released it at all, what's the point of this theater and artificial scarcity
matheusmoreira 12 hours ago|||
No idea. But I will switch to OpenAI if they release their Sol model on a subscription. And if neither of them do, I will switch to GLM 5.2.
lilytweed 12 hours ago|||
This is what I’m thinking, too. OpenAI is gaining a structural advantage purely on the basis of not being considered an enemy of the administration. Anthropic really blew it with Washington.
ekidd 12 hours ago|||
By "blew it with Washington" you mean "Didn't donate millions to the ballroom."
Matl 6 hours ago|||
They blew it by pretending to take some sort of moral high ground while their model was being used in Iran to blow up schools. I say they get what they deserve. I would have a lot more respect for them if they banned Pentagon use of their models outright.
eru 12 hours ago|||
It's interesting that the fate of billions or even trillions of dollar hinges on millions of dollars of donations.
wongarsu 6 hours ago||
That is what corruption usually looks like
eru 6 hours ago||
Yes. And as the saying goes: the scandal is not that you can buy politicians, the scandal is that they are so cheap.
miki123211 12 hours ago|||
It doesn't look like it; similar restrictions apply to GPT-5.6 as used to apply to Fable.

I think the Fable ban happened because Anthropic was first to release a capable enough model.

jitl 10 hours ago||||
i don’t think 5.6 will be as good as fable. their benchmark graphs say so, maybe they’ll take some limiters off next week or something now that being Fable tier isn’t scary anymore.
cromka 9 hours ago|||
It will likely be GLM 5.3 by then
tiahura 4 hours ago|||
Perhaps the 9,999 fields other than computer technician will appreciate it?
2001zhaozhao 12 hours ago|||
At least subscription users only have to pay $700 for $1000 of extra credits.
meowface 11 hours ago|||
Yes, I am pretty sure it was simply poorly worded.

They almost definitely mean "you will notice even more false positives during seemingly routine coding/debugging tasks than you did at the initial launch". Which is not surprising, given the ordeal they've been put through. Hopefully it won't be too bad.

The main depressing thing for me is it's now only 7 days on the subscription, and then full API pricing, with no mention of even a plan to bring it back to the subscription in the future. (The initial launch mentioned two weeks of subscription, then API pricing, then a hope to return it back to the subscription not long after.)

xpct 5 hours ago|||
So, you can't use it for coding, can't use it for 'sensitive' information in chemistry/biology. It follows that it's likely bad for medicine and adjacent topics too.

What can you use it for? To run a breadth search on Erdos problems?

skeptic_ai 1 hour ago||
To do if/else
AquinasCoder 13 hours ago|||
I wonder if they meant to draw a link between cybersecurity coding and debugging specifically or this really will apply to all coding and debugging. If it really is a more general restriction, then this is practically the same as it still being restricted.

"In the near term" is doing some heavy lifting.

artisin 13 hours ago|||
In the press release, they 'kind of' clarify this:

   > The new classifier also comes at the cost of flagging benign requests more often during routine coding and debugging tasks.
diwank 13 hours ago|||
where did you find that? weird coz their post announcing this also mentioned Claude Code:

> Fable 5 will be available starting tomorrow, Wednesday, July 1, to users globally on the Claude Platform, Claude.ai, Claude Code, and Claude Cowork. For Pro, Max, Team, and select Enterprise plans,1 Fable 5 will be included for up to 50% of weekly usage limits through July 7, after which it will be available via usage credits. We will re-enable access on AWS, Google Cloud, and Microsoft Foundry as quickly as possible.

https://www.anthropic.com/news/redeploying-fable-5

bluepeter 13 hours ago||
Their announcement tweet at https://x.com/AnthropicAI/status/2072163884430229756

Reading the full blog post, I think the summary was just poorly written (because it's hard not to read that sentence like all coding is redirected to Opus).

mikesurowiec 13 hours ago||
From the full announcement

> The new classifier also comes at the cost of flagging benign requests more often during routine coding and debugging tasks. As with all our safeguards, we’ll continue to refine this to better distinguish genuine misuse from legitimate requests and reduce false positives.

poizan42 7 hours ago||
But wasn't the whole (claimed) reason that it got banned in the first place that it is a logical impossibility? Reviewing code for bugs is legitimate. Writing regression tests for bugs is legitimate. If the bug happens to be a security issue then the regression test may be a PoC or at least a step towards one.
dzonga 17 hours ago||
Chinese models brought the building down.

are export controls the right thing ? Probably not.

but the american economy is over-exposed on "A.I" - the capital expenditure, while the Chinese are proving you don't need to spend tons of capital to get close to the frontier.

the Chinese have better building capacity & cheaper energy. that means the market has to correct at some point.

villish 17 hours ago||
It's a little too later for export controls. Chinese models have made massive gains through legitimate research but also being trained on billions of tokens from Claude/GPT. The politicians have no idea how to stop that from happening so they pull the only lever they know.
zamalek 15 hours ago||
Also, don't forget that we're only here because the clown-in-chief cut them off from GPUs - forcing them to make do with inferior hardware (and hence superior ideas). I have no doubt that any controls would only make China stronger.
zamadatix 12 minutes ago|||
> clown-in-chief

I'm extremely left leaning myself but I'd rather not be able to tell who won the last election cycle by looking at HN and seeing whether comments containing phrases like this for the president are upvoted or [dead]. The only thing it aids is convincing people the guidelines are for selective application. Everyone who doesn't like ${currentPresident} will be unchanged and those who do aren't going to be convinced by constant casual name calling across the site - probably the opposite.

I usually also expect to get called out as only saying this when ${currentParty} is in power or when it only benefits ${awfulThingsAboutCurrentParty}, regardless which that is and what those are at the moment. I've started including this note and the searchable token "reallynotpartyrelated" when commenting such things for later reference - this paragraph can otherwise be ignored :).

aspenmartin 5 hours ago|||
Its like any other sanction, its designed to slow not stop
HarHarVeryFunny 4 hours ago|||
But it actually had the exact opposite effect.

First the US blocked China from buying NVIDIA's H100, but allowed NVIDIA to sell them a China-special nerfed H100, the H800

Then the US blocked the H800

Then the US realized that China was indeed accelerating their US independence, so does a U-turn and has now approved the H200 (more powerful than both the H100 and H800) for sale to China, on a case-by-case basis

However - and here is the real kicker - China themselves are now blocking H200 purchases since they want the acceleration towards Chinese homegrown solutions to continue, and now we have Chinese models being served on Huawei Ascend chips, with next generation Ascend 750 chips (using CXMT made memory) targetting training currently in testing.

Now we have Apple asking the US government for permission to buy memory from CXMT given the global shortage!

aspenmartin 4 hours ago||
The Jensen argument that "oh we get them hooked on our technology and that will actually be better" is bullshit -- they would do the exact same thing they're doing now of building their own supply chains and compute power but be able to accelerate their progress in the meantime with US chips. It is worse in every way to sell them SOTA chips (or even previous generation chips).

Of course they have ways around this -- you can get black market GPUs and also API costs are SUPER cheap there -- they hack the subscription model, bundle a bunch of user accounts, and route API requests through them.

And yes they are getting to parity with US technology and will get there in a few years, they have decent chips but still not the quality of NVIDIA.

It's really a very complex situation

HarHarVeryFunny 3 hours ago||
I don't know what you mean by the "quality" of NVIDIA. All the western AI accelerators, from NVIDIA, AMD, Google (TPU) and Amazon (Trainium) are made by TSMC, and their speed/density is only possible due to TSMC using EUV machines made by ASML (a dutch company).

Without access to ASML EUV machines, the Chinese will be stuck on older less-dense chip manufacturing nodes, but in terms of building a cluster this is just a cost/efficiency issue - it means you need more chips, more electricity!

zamalek 2 hours ago||||
You misunderstood my comment. My hypothesis is that it did _neither:_ it accelerated along an axis, and American SOTA/frontier is now laggard (efficiency).

Deepseek and Kimi are writing paper after paper with substantial architecture improvements for efficiency, because they can't just throw more hardware at the problem.

And China is now doing something on the hardware axis; which it may have never explored were it not for the sanctions.

throwup238 59 minutes ago|||
> And China is now doing something on the hardware axis; which it may have never explored were it not for the sanctions.

Gaining parity on the semiconductor fab front has been official government policy as part of their Five Year Plan for at least the last decade, straight from the Politburo. They were always going to go down this path, and with AI playing front and center on their upcoming plan, there’s even more pressure.

There was never a possibility of them not exploring it.

throwa356262 38 minutes ago||
The difference is that this time the both the government and the (semi) private sector invested billions in this area.

They have always been able to do this, but this time they did have the option to pass.

throwup238 7 minutes ago||
There’s an ambiguity here: what is “this area”? If we’re talking about the semiconductor industry, they’ve been investing billions since the early nineties. The really big push came with the China Integrated Circuit Industry Investment Fund in 2014 at which point they were plowing billions into the industry across the public and private front. That one fund alone has $100 billion in assets under management at this point, and there are many other funds involved.

They’ve also invested in AI separately (before LLMs) in that time period but I’m less familiar with that sector.

aspenmartin 2 hours ago|||
Oh no Chinas chip manufacturing efforts have a long and rocky history, they would be pursuing a sovereign stack no matter what.

The tradeoff is worth it. They’re even publishing papers which blows me away — their efficiency gains quickly become incorporated into frontier models because they are open sourcing them. They would be aggressively pursuing the same chip pipeline strategy as they are today.

US is lagging in efficiency work because the ROI is better elsewhere for us. We have the same tier of talent, once the script flips so can the research.

zrn900 25 minutes ago|||
Slow? The chip ban was just a few years ago. The result? China is more or less self-sufficient in chips, about to catch up with the latest generation. They even banned China from using lithography machines. The result? China is now producing lithography machines that only few in the world could produce.

Let's face it - all bans were dumb. They just gave China the legal (per WTO rules) justification to start producing everything domestically. The bans work as a reverse tariff, as a protectionist measure that actually protects your competitor. If China did those, others could bring China to court at the WTO. But the US did that, so nobody can sue China.

kcb 17 hours ago|||
You really think China doesn't have massive amounts of capital expenditure related to AI? They're actively bootstrapping an entire chip industry.... https://www.reuters.com/world/china/china-prepares-295-billi...
xmprt 16 hours ago|||
Relatives vs absolutes. America will spend $500B and because of leaky pipes that's effectively 100B going directly to what's needed. China gets a lot of bang for their buck so even if they're spending a fraction of the US, they make it worth their money.
boc 13 hours ago|||
That's true for domestic labor and manufacturing, like shipbuilding, but the bleeding edge chips only come from one place and the US labs get the best while Chinese labs do not (unless they smuggle them). China gets creative, sure, but it can't overcome the fundamental issue that the US labs have more magic rocks that do math faster than their magic rocks. And the current state of the art is to just "do more math".
bel8 12 hours ago||
Nvidia GPUs aren't even the absolute SOTA for LLM inference anymore. Some labs are moving to ASICs and Huawei already have their own custom chips running DeepSeek as we speak.

There's enough money and scale on the line that software affinity like CUDA is no longer the deciding factor and there's margin for custom stacks.

Even more so after the USA GPU exports ban which is proving to have backfired by speeding up China's tech growth.

aspenmartin 5 hours ago||
Definitely hasn’t backfired. Exporting would have just sped up their progress. Instead they had to get clever and lean into the bottleneck which for them, now, is compute efficiency. This is temporary and they’ll figure out competitive chip design and production but not for several more years. It’s incredibly hard to match the quality of NVidia and TSMC, as China has found throughout years of trying.
skeptic_ai 1 hour ago|||
I’m worried if west gets to ahead the best thing for C is to destroy the factories to slow down the ai.

If west ai is too advanced can take over the world. So better go to war now on a same level playing field than later when you need to fight against a SGI

aspenmartin 1 hour ago||
That is exactly the scenario that I believe and invest in. I peg trouble in Taiwan in the next 2 years at about 30%, which is waaaay higher than is priced into the market right now. If you think intel has gone up in price a lot now, it will absolutely skyrocket if TSMC fabs suddenly disappear. After adjusting to a domestic fab pipeline, we will have built up again an industry with a good talent pool (which we don't have now, Arizona TSMC fab needed to ship people in from Taiwan). At that point, why go back to a TSMC model? Hence we will have a booming domestic production pipeline, though still with complex international dependencies for various components.
zrn900 21 minutes ago|||
Nope. If China were not banned from US-controlled chips, it would be importing chips at much higher prices, therefore getting less bang for its buck while strengthening competitors with its money in the process.

Instead, the US banned China from chips and lithography machines, giving China the legal excuse to start producing them domestically without violating WTO rules. Now China produces cheap chips and uses them with cheap electricity.

This was a dumb move by the US. Brought upon it by dumbf*ck aristocratic elites who grew up in isolated mansions and then received law degrees, with absolutely no understanding of technology and technology ecosystems. They thought they'd just make the rules and everybody would have to obey. It turns out in technology, they don't have to...

lukan 10 hours ago|||
I believe China has leaky pipes as well.
throwa356262 18 minutes ago||
China has a big corruption problem.
sometimelurker 6 hours ago||||
their putting a ton of money into things that will benefit AI work if they work, but chipmaking is important for other reasons too, so if AI (somehow? I doubt) doesn't give enough ROI chips can be used for other things
enraged_camel 15 hours ago|||
China’s chip industry is 7-10 years behind, and that is because they are desperate and have been throwing money at it. But technological progress requires more than just money.
nl 14 hours ago||
Jensen said the Huawei Ascend 950 is roughly comparable to the NVidia H200[1]

The H200 was released Nov 2024.

Even allowing for Jensen exaggerating the risk there is no way China is 7-10 years behind.

Looking at manufacturing process nodes, SMIC N+3 is a a 5nm process. 5nm was introduced by Samsung and TSMC in 2020 so at most that is 6 years.

But the chips they can produce on it are roughly comparable to "roughly level with Android flagships from three years ago"[2]

TL;DR: China is more like 2-4 years behind than 7-10 years. If China developed EUV lithography then all bets are off.

[1] https://www.reddit.com/r/LocalLLaMA/comments/1kxw6b9/nvidia_... - see video.

[2] https://www.tomshardware.com/tech-industry/semiconductors/se...

solenoid0937 12 hours ago||
2-4 years is enough to lock them out of the race.
HarHarVeryFunny 4 hours ago|||
The H200 is a more powerful H100, and the H100 is far from obsolete - for example it is what Musk's Colossus-1 data center, currently being rented to Anthropic, uses.

The only difference between using a slower chip such as H100 (or Huawei's Ascend 750) vs NVIDIA's newer Blackwell chips (B200 etc) is that you need more of the slower chips to achieve the same total FLOPs in your cluster. It has zero effect on what models you can run on it.

zrn900 20 minutes ago||||
It's hard to understand: Do you think that having to use chips that were 20% less performant would lock China out of anything? Are you not aware that with the low costs they have, they can just stack ten times or more datacenters and run workloads in parallel to make up for that performance difference - even if there was actually one that high?
dgellow 11 hours ago|||
No? They are actively in the race, what are you talking about
solenoid0937 11 hours ago||
By "the race" I mean "the frontier, and the race to superintelligence." They are categorically behind. The best they can do with the capacity they have is to distill US models, but that doesn't enable them to reach the scale needed to leapfrog the US in the race to superintelligence.
nl 11 hours ago||
It isn't distillation that gave GLM 5.2 it's jump in performance.

To quote Pat Toulme:

There’s a big misconception about how GLM 5.2 was trained. Yes, they distilled Claude and GPT 5.5 — but distillation is not how they matched Opus quality. Distillation only fixed the cold start problem in RL.

RLing an agentic coding model isn’t rocket science. In simplified terms:

1. RL needs trajectories — rollouts where the model actually completed a task in some env

2. No successful trajectory on a task = zero gradient = you can’t RL it. This is the cold start problem

3. Distillation solves it. You seed your model with knowledge from a smarter one (Claude, GPT) on tasks it can’t do yet

4. Now it produces positive trajectories on those tasks

5. RL on those trajectories and hill climb agentic coding

6. At that point you no longer need to distill and can solely hill climb RL to better models

This is an interesting curve. I’d argue it’s harder to get to Opus 4.8 from scratch than to go from Opus 4.8 → Fable/Mythos tier.

GLM 5.2 is already producing positive trajectories, so they have plenty to RL on — they’ll keep climbing to Mythos quality without distilling any further. They no longer need American models.

https://x.com/PatrickToulme/status/2069211575437627743

Not exactly sure what the finish line in "the race to superintelligence" looks like and even moreso it's unclear why you think being there first is a critical benefit.

aspenmartin 5 hours ago||
Yes but in an equilibrium steady state, compute and data advantages are all you need to first order. China does not yet have a compute advantage. RL is indeed the magic sauce for coding agents but the bottleneck for how much progress you can make, for both the US and China, is compute. The US at least for the next few years has a clear advantage here.
dgellow 5 hours ago||
So, China is in the race. Just not leading yet
aspenmartin 4 hours ago||
Exactly -- the hope for US strategy is that you can slow them down a lot but not forever. That slowing them down is in itself enough to keep a strategic advantage over them both in terms of economic growth and offensive capabilities both in terms of cyber attacks, intelligence and things like drones, etc.
dakolli 17 hours ago|||
I trust Chinese companies with my data way more than the corporations of the 4th Reich.
kraken_cult 17 hours ago||
[flagged]
chews 17 hours ago||
-3 homer discount
nickv 17 hours ago||
I bet you that nothing changed with how Fable 5 is run.

"Anthropic has agreed to proactively detect and address security risks associated with the models" LOL, this was already happening.

This clown car administration just keeps making shit up and then backpedalling in a way that just leaves everything worse.

levocardia 2 hours ago||
I'll take the opposite side of that bet. My prediction is that Fable 5 Re-Release will have safety classifiers that flag much more often on mundane front-end and back-end coding tasks.
matheusmoreira 12 hours ago|||
> The new classifier also comes at the cost of flagging benign requests more often during routine coding and debugging tasks.

Looks like it's gonna be even harder to use than before, if not impossible. Subscription users only get it for a week, and only for 50% of that week's usage.

stillcompiling 8 hours ago|||
Considering Anthropic's most recent masterpiece of marking requests in CC they don't look much better than the 'clown car administration'.
LogicFailsMe 3 hours ago|||
TAICO. But seriously, I think the whole capex bubble is a response to the unpredictability of this administration by locking in future sales and orders to reduce the impact of its mercurial moves.

That a good 1/3 of America is still cheering this behavior on is beyond me. I didn't vote for him anytime he ran, but at least during his first term there were some adults I disagreed with in the room as opposed to the barrel of chaos monkeys we now have. He really doesn't reflect the views of either party, he is his own thing.

davidwritesbugs 11 hours ago|||
The counter example is the administration’s great success in the Iran war. Oh, wait.
IshKebab 9 hours ago|||
I expect they just increased the sensitivity of their existing filter. They probably intend to gradually lower it over time, or perhaps introduct Fable 5.1 with less filtering.

It's pretty clear that they didn't want this anyway, despite what the conspiracy theorists want to believe.

worldsavior 11 hours ago||
They're cooperating, the US government knows that and it was all a scheme to hype the model or affect the market.
lukan 10 hours ago||
Was this part of the scheme as well?

https://en.wikipedia.org/wiki/Anthropic%E2%80%93United_State...

artisin 13 hours ago||
Silly me for hoping they'd actually honor their original 14-day promise. Per their latest blog post, they've generously slashed the timeline to 7 days, but wait there's more! It's now limited to 50% of your weekly usage:

  > Fable 5 will be available starting tomorrow, Wednesday, July 1, to users globally... Fable 5 will be included for up to 50% of weekly usage limits through July 7, after which it will be available via usage credits. 
https://www.anthropic.com/news/redeploying-fable-5
matheusmoreira 12 hours ago||
Hi subscription peasants! You have seven days of time and 3.5 days of usage to figure out how to get the most out of Fable while it constantly downgrades to Opus 4.8 every time it thinks about exploits while hardening your code base! Enjoy!
levocardia 2 hours ago||
3.5 days to escape the permanent underclass ;_;
qingcharles 13 hours ago|||
Yeah, this seems a bit Scrooge-y after all the trouble which was essentially of their own making. I was expecting them to come back with a better deal as an apology, not a worse one.
aenis 12 hours ago|||
I assume what they saw during the first coming of Fable gave them pause. Lots of people I know were using it non stop to the point of serious sleep deprivation. I managed to burn 6k in 3 days on it, and was myself using it from the minute it landed till the minute it was shut off. (Yes yes, I know, I am just saying there were stupid people like me swarming the available capacity)
knollimar 6 hours ago|||
Would you be doing that without the FOMO?
aenis 1 hour ago||
I would be doing the same thing with opus or gpt-5.5 -- project in crunch phase. But I really did enjoy Fable. Not sure if it was worth the premium, probably, but it offered great design help.
faffifng 11 hours ago|||
[dead]
vilevile 12 hours ago|||
[dead]
rushi_agrawal 9 hours ago|||
If they really cared about their image among their user base and wanted to undo a little bit of damage they've already done via various policies and decisions, keeping the limits and duration the same as before the ban (or slightly being more generous with them) would have been a really cheap way for them to do that. Alas...
user43928 8 hours ago||
I hope that their marketing and developer relations teams were already off yesterday, and that they will have better news for us today.

OpenAI is doing a much better job on this, offering generous usage limits to users at home. They also hand out usage resets for minor issues, that you can even apply at a time of your choosing.

jefftk 6 hours ago||
We lost ten days of the original plan (June 13th through 22nd) and got seven days (July 1st through 7th). You're not counting the portion of the original 14 days we already got.
avaer 18 hours ago||
I shudder to think what the definition of "malicious activity" is that they will be reporting to the government. Speech has been severely chilled the last couple of years.

It's nice that the restriction is going to get lifted but I hope this doesn't make anyone complacent that their coding work is going to be scrutinized by the US government, with AI, when using these models.

low_tech_love 10 hours ago|
The FBI has started to test the idea in other countries:

https://www.mixvale.com.br/2026/06/26/fbi-warns-brazilian-po...

varjag 10 hours ago||
So two and a half weeks, and on the workday. I wonder how much Jared had made.

https://news.ycombinator.com/item?id=48519513

Foxhuls 10 hours ago||
You’re setting my expectations high for your next prediction
drooby 6 hours ago||
Wouldn't "2-3 weeks on a workday" be a default hypothesis for this kind of thing?
jstanley 5 hours ago|||
If it's truly too dangerous to use you'd expect it not to be reversed at all.

Why would you expect a typical policy decision to be reversed within 3 weeks? If policies are going to be reversed within 3 weeks just don't do them in the first place.

varjag 5 hours ago|||
Normally export controls once introduced last years to decades.
ryandrake 16 hours ago|
"Taken Steps"

Looks like Anthropic paid the Danegeld. Now they'll never get rid of the Dane.

dboreham 16 hours ago||
South of Watling St you're ok.
bpodgursky 15 hours ago||
I mean, they did eventually get rid of the Danes.
grey-area 11 hours ago|||
The Danes colonised England. They never left but merged with the existing population.

https://www.britannica.com/place/Danelaw

bpodgursky 1 hour ago||
Not really, the genetic contribution of Danes to modern English DNA is somewhere 0-10%. There was some merging but pretty marginal.
Tangurena2 4 hours ago||||
That involved a rather genocidal approach in 1065 - killing everyone related to, or doing business with the Vikings. This tends to get downplayed by historians. And when the Vikings/Norsemen came back for revenge in 1066, King Harold 2nd managed to kill off the Viking force at Stamford Bridge, but was too exhausted when William invaded down south (being defeated at Hastings). 300-ish miles is a short drive by car, but in an era long before preserved food or mechanized transport, such a march over about 2 weeks would have been terrible.

Overview: https://www.bbc.co.uk/history/ancient/vikings/overview_vikin...

https://en.wikipedia.org/wiki/Northumbrian_Revolt_of_1065

https://en.wikipedia.org/wiki/Battle_of_Stamford_Bridge

https://en.wikipedia.org/wiki/Battle_of_Hastings

bpodgursky 3 hours ago||
Oh I know, it was ugly. The OP just phased it like the brits were still paying tribute to the Danes.
ChrisRR 9 hours ago|||
No they didn't. The vikings became part of the population
vinceguidry 1 hour ago||
The school bully rarely has a great life after high school. In this case, the bully ended up working for them.
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