Rest of World's publisher visits China and finds the U.S.-China AI rivalry isn't as binary as it seems—both countries are pursuing different but equally serious paths, with China betting heavily on embedding AI into physical products and manufacturing rather than chasing raw computational power.

• China is pivoting toward deploying AI in robotics, EVs, and factories instead of competing for frontier model capability, partly due to U.S. chip export controls but also as a deliberate strategic choice.
• American export restrictions may be obsolete; China's real constraint is now high-quality data and interaction with the physical world, not compute power—meaning Washington's leverage is weaker than assumed.
• Both countries face genuine risks and trade-offs: the U.S. debates innovation versus regulation while China treats advanced AI as a national security asset, embedding it across the economy with minimal constraints on state surveillance or individual liberty.

Anthropic told the Senate that Alibaba used about 25,000 fake accounts to run 28.8 million prompts against its Claude models between April 22 and June 5, calling it the largest known distillation attack on the company. At the same time, Anthropic faces a U.S. export control order suspending foreign access to its newest Claude models and is meeting with the Trump administration to resolve the dispute.

• Anthropic accused Alibaba of running roughly 25,000 fake accounts to send 28.8 million prompts to Claude between April 22 and June 5, calling it the largest known distillation attack on its models.
• Anthropic is simultaneously fighting a Commerce Department order forcing it to cut off foreign nationals, including its own non-U.S. staff, from its newest Claude models (Fable 5 and Mythos 5), citing unspecified national security concerns.
• Anthropic is lobbying Congress and the White House for industry-wide cooperation with cloud providers to detect and block distillation attacks, while also negotiating directly with the Trump administration to lift the export suspension.

The White House slapped export controls on Anthropic’s Claude Fable 5 and Mythos 5 after a code-based jailbreak showed they could identify and fix security flaws. Regulators demand a “fix” that experts say can’t distinguish defensive from offensive coding skills. The post also surveys recent AI news—from new full-body medical scanners to benchmark upgrades and policy proposals.

• This is satire/fiction dressed as a news roundup—the models, companies (Claude Fable 5, Mythos 5, MidJourney Medical), and events (export controls, the pause) appear to be invented rather than real.
• The core absurdist point: regulators demanded a "fix" for an AI's ability to find and patch security flaws, even though experts say defensive and offensive coding skill can't be separated—so the "fix" is technically incoherent.
• Markets are already treating the situation as a betting market, pricing 50-50 odds the export-control pause gets resolved by July 1.
• The piece frames this fictional crisis against a backdrop of real-seeming AI industry noise (new benchmarks, funding rounds like DeepSeek's $7.5B raise at a $50B valuation, competing models like GLM-5.2 and Grok 4.3) to satirize how policy panic outpaces actual technical understanding.

Anthropic disabled Mythos 5 and Fable 5 after a US Commerce Department export-control order barred their use abroad. The administration asked for a pause amid reports of a narrow jailbreak letting Fable 5 analyze code for vulnerabilities. Anthropic says the issue produced only minor findings and that other models, like GPT-5.5, have similar capabilities.

• Anthropic disabled Mythos 5 and Fable 5 days after launch due to a Commerce Department export-control order barring their use outside the US.
• The trigger was a narrow jailbreak letting Fable 5 give cybersecurity/chemistry/biology advice on a specific codebase, but it only surfaced minor vulnerabilities.
• Anthropic claims other models like GPT-5.5 have similar capabilities, suggesting the singling-out of Fable 5 is inconsistent.
• The article's own account is internally contradictory: it names the Commerce Department order as Trump-administration action but then attributes the pause to "the Biden administration."

Anthropic cut off access to its Mythos 5 and Fable 5 AI models to comply with new US export controls. Elon Musk became the world’s first trillionaire after SpaceX shares surged in its IPO. The update also covers a CRISPR method that targets “undruggable” cancers and the first working nuclear clocks from Chinese and European teams.

• Anthropic fully cut off its Mythos 5 and Fable 5 models to comply with new US export controls barring their use outside the US.
• Elon Musk became the first trillionaire after SpaceX's IPO share price hit $135, pushing his net worth past $1 trillion—over 3% of US GDP.
• A new CRISPR method targets and destroys cells with a tumor-suppressor mutation found in up to half of all cancers (70-90% of hard-to-treat cases), offering a faster path to treatment than small-molecule drugs.
• Chinese and European teams each independently built working nuclear clocks using thorium-229, solving the laser wavelength problem with different approaches (higher power vs. denser crystal matrix).

The US government issued an export control order to cut off all foreign-national access to Anthropic’s Fable 5 and Mythos 5, citing a potential jailbreak vulnerability. Anthropic says the reported exploit is narrow, already known across other models, and disagrees that it warrants a full suspension. The company plans to share more details within 24 hours and restore access if possible.

• The US government ordered Anthropic to cut off all foreign-national access to Fable 5 and Mythos 5 over a claimed jailbreak vulnerability, with only a "national security concerns" explanation given.
• Anthropic says the exploit is just a narrow codebase-scanning jailbreak trick that only surfaces minor, already-known vulnerabilities present in any public model, including OpenAI's GPT-5.5.
• Anthropic disabled both models entirely despite disputing the severity, arguing the shutdown is disproportionate and could chill AI releases industry-wide.
• The company is pushing for a transparent process with clear technical criteria instead of sudden verbal directives, and plans to release more details within 24 hours while seeking to restore access.