The U.S. Commerce Department forced AI giant Anthropic to suspend global access to its Fable 5 and Mythos 5 models in June due to a critical jailbreak vulnerability. The order effectively took the models offline for about three weeks.
Access was restored in early July only after Anthropic agreed to enhanced safeguards and increased government oversight. Fable 5 regained full global access, while Mythos 5 was initially restricted to approved U.S. organizations.
This action is a significant regulatory escalation against a company valued near one trillion dollars. It follows earlier tensions between Anthropic and the Department of Defense over military applications of its safety-focused technology.
The crypto market reacted strongly. Tokens for decentralized AI projects surged as investors bet on censorship-resistant alternatives to centralized systems vulnerable to government shutdown orders. Projects like Venice and Morpheus saw notable gains.