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U.S. Government AI Curbs Spark Market Re-Rating Fear as China Closes Gap

6/29/2026

The Trump administration's decision to impose deployment delays on frontier models from OpenAI and Anthropic has fractured the pro-AI coalition that defined Washington's technology posture, raising the prospect of a government-controlled speed limit on American labs precisely as Chinese rivals demonstrate competitive parity on cybersecurity benchmarks.

The Policy Shift That Broke the Coalition The White House asked OpenAI to stage the rollout of its latest model, GPT-5.6, after issuing a similar directive that forced Anthropic to suspend access to its Fable 5 and Mythos 5 models.

Mythos 5 has since returned on a limited basis after Commerce Secretary Howard Lutnick stated in a letter seen by Axios that Anthropic's work with the government had "yielded significant progress." Fable 5 could follow.

The interventions drew an immediate rebuke from David Sacks, Trump's former AI and crypto czar.

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