Export controls just shuttered Fable and Mythos — is the US AI industry next
the commerce department issued export controls that shut down fable and mythos, sparking a crisis in the us ai industry. meanwhile, states are suing openai because federal policy remains too weak to regulate ai harms.
the commerce department abruptly issued export controls that effectively shut down us ai startups fable and mythos, creating instability for domestic companies. critics argue this move was arbitrary and poorly considered, noting that it harms the industry without solving safety issues. at the same time, states are taking legal action against openai because the trump administration's voluntary executive order is too narrow to address consumer harms. florida sued openai over alleged false advertising and data issues, while a coalition of states led by new york subpoenaed the company over its impact on users. this fragmentation suggests that without comprehensive federal policy, the us government will continue to stifle innovation while failing to protect citizens.