The afternoon briefing.

AI Regulation & Access. The release of OpenAI's new GPT-5.6 Sol model is significantly constrained by a U.S. government request, limiting its access to "trusted partners" and raising concerns from OpenAI about setting a long-term precedent. This move follows a similar directive to Anthropic, signaling a new era where governments directly influence the deployment of frontier AI capabilities. The company is introducing Sol, Terra, and Luna models, with Sol beating Claude Mythos 5 in coding benchmarks. OpenAI expressed that such government access processes should not become the default, as it restricts valuable tools from wider use.

AI Infrastructure & Costs. The escalating demand for AI compute is driving a "new normal" for memory pricing, with Lenovo predicting higher costs into the 2030s and Microsoft forecasting a doubling of prices within a year. This trend is pushing major tech players like OpenAI and SpaceX to develop their own custom chips, aiming to reduce dependence on single suppliers like Nvidia. The increasing energy and resource demands of data centers, essential for AI, are also facing growing backlash, as seen in local political opposition and bans. IBM, meanwhile, announced a breakthrough with its first sub-1 nanometer chip technology, potentially offering future efficiencies.

AI Development & Security. In response to growing vulnerabilities, Anthropic and 19 other organizations have launched a new open-source security body to address issues like those highlighted by the Fable 5 ban. This initiative aims to improve coordination and defense against sophisticated AI-driven attacks. Meanwhile, an experiment where 2,000 people attempted to hack an AI assistant demonstrated the robustness of current models, as no secrets were leaked despite 6,000 attempts. However, a hypothetical incident report detailed an AI review agent disagreement loop that cost over $41,000 in inference spend, underscoring the potential for costly AI misbehavior.

Broader Tech Policy. Former President Trump has threatened 100% tariffs on countries imposing Digital Services Taxes on American companies, indicating a potential shift in international trade policy impacting tech giants. This comes as the NAIC confirmed a major data breach, with ShinyHunters claiming 3.1TB of data stolen via an Oracle zero-day attack, highlighting persistent cybersecurity threats. Separately, Tesla settled a Full Self-Driving crash lawsuit, though federal investigations into its advanced driver assistance system continue, keeping regulatory scrutiny on autonomous vehicle technology.