Anthropic AI Models Offline: US Regulators Spark Token Rally

US regulators forced a major AI company, Anthropic, to take its advanced AI models offline. The Commerce Department issued a directive on June 12, requiring Anthropic to suspend global access to Fable 5 and Mythos 5 due to a jailbreak vulnerability. These models were offline for about three weeks. Access was restored around June 30, but only after Anthropic agreed to enhanced safeguards and increased government oversight. Mythos 5 was initially restricted to approved US organizations. This company is valued at nearly $1 trillion. Its CEO had previously called for stricter federal regulation of frontier AI. The incident involved users bypassing safety constraints in the models. This event sparked a rally in decentralized AI tokens. Projects like Venice and Morpheus saw gains as investors looked for systems that cannot be easily shut down by a single government.