On Tuesday, AI company Anthropic announced that the U.S. government had lifted export controls on its newest models, following a more than two-week suspension prompted by cybersecurity concerns.
Anthropic said that Claude Fable 5 would be available to consumers worldwide starting on Wednesday, although use of the more capable Claude Mythos 5 will remain limited to certain approved organizations. Access to both models had been blocked since June 12, when the Trump Administration imposed restrictions on their use by foreign nationals.
The White House was concerned that Anthropic’s safeguards could be bypassed to help identify software vulnerabilities, allowing for disruptive cyberattacks at potentially large scale. In response, Anthropic said it had strengthened its models’ safety systems, and committed to continuing cooperation with the U.S. government on testing, standards, and threat reporting.
Anthropic competitor OpenAI also rolled out its latest model, GPT 5.6, with a limited release to comply with U.S. government requests.
Prior to this, the Administration had taken a “light touch” approach to AI, seeking to federally preempt state regulation of the technology and issuing an executive order that eschewed a mandatory licensing regime in favor of a voluntary approach. However, the increasing sophistication of new AI models may be prompting a change of course.
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The NASDAQ composite index ended Tuesday down 2.2 percent, a dive driven by falling tech stocks. AI and chip stocks spearheaded the decline, with key companies like Tesla (TSLA), and Nvidia (NVDA) down 5.82 and 3.91 percent respectively over the past five days.
One key driver of the decline was fear ahead of earnings reports from Micron Technology, a key chipmaker, after market close on Wednesday. Micron fell 13 percent on the day, alongside the South Korean chipmakers Samsung Electronics and SK Hynix, which fell 12 percent over the same period.
These declines come as major AI companies, OpenAI and Anthropic, plan to offer shares on the public markets, raising questions about their long-term profitability.
Corporate Investment in artificial intelligence this year has reached a high of $580 billion according to Stanford University’s 2026 AI Index report, with over $1 trillion cumulatively in the past four years. Costs of AI processing and production rising still higher than revenues has fueled speculation about an AI bubble and worries about the Federal Reserve rate hikes.
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