※[Global Morning Briefing] summarizes global news delivered by Seoul Economic Daily.
US Locks Down AI: 'Mythos' Halted Three Days After Launch
The US government imposed access bans for foreign nationals and export controls on AI company Anthropic's cutting-edge AI model just three days after its launch. Observers say US AI export regulations, which for the first time target the model itself rather than chips, will have a significant impact on the global AI industry.
In a statement, Anthropic said, "On the 12th, the US government notified us of export control directives ordering us to suspend access to 'Fable 5' and 'Mythos 5' for all foreign nationals for national security reasons," adding that "we are suspending service of these models to comply with the regulations." It is the first case of the US government blocking the export of an AI model from a domestic company.
The directive applies not only to overseas users but also to foreign nationals staying in the United States. As foreign-national Anthropic employees were also included among those subject to restrictions, the company halted operation of the models.
The US government took issue with the possibility of "jailbreaking" Fable 5. Jailbreaking refers to a technique that makes AI bypass its built-in safeguards to generate originally restricted responses. Anthropic claimed it had applied strong safeguards, but the US government determined there was a national security risk because a path to circumvent them had been discovered.
Anthropic is countering that the government's judgment is excessive.
Some have expressed growing concern that the Donald Trump administration is raising the level of its direct intervention in the AI industry. The Wall Street Journal (WSJ) noted that it "shows the administration is strengthening its control over the AI industry as a whole."
Trump, Pressed by Election, Says "Sign Deal on the 14th"...Iran Says "He Insists on His Birthday Schedule"
US President Donald Trump announced he will sign a memorandum of understanding (MOU) ending the war with Iran on the 14th local time, bringing to a close ceasefire negotiations that have dragged on for more than two months. Analysts say that Trump, who must hurry to focus on domestic politics ahead of the November midterm elections, and the Iranian regime, which has reached its limit due to economic deterioration, are seeking to settle the situation with a stopgap measure. However, the signing could be delayed, as Iran is protesting that Trump is insisting on signing the MOU on the 14th, his 80th birthday.
Trump said on Truth Social on the 13th, "Iran no longer wants nuclear weapons and will not possess them through purchase, development, or procurement in any form," adding that "the agreement is set to be signed tomorrow (the 14th)." US outlet Axios reported that a video ceasefire meeting would be held to sign electronically. The Qatari negotiating team, the mediator, arrived in Tehran, Iran's capital, on the 14th to wrap up the negotiations, and Iran is said to be conducting political, legal, and technical reviews of the MOU's wording.
But last-minute difficulties continue. Iran's Islamic Revolutionary Guard Corps (IRGC) criticized via Telegram that "Trump is being unusually stubborn in pushing to sign the MOU on the 14th, to coincide with his birthday."
Even if the MOU is concluded, follow-up negotiations dealing with the nuclear issue and other major points of contention are expected to face significant difficulties. The United States is demanding the full reopening of the Strait of Hormuz immediately after the war's end, but Iran maintains it will definitely collect a "service fee" for passage through the strait.
"In Five Years, Highly Educated Americans Will Be Driven en Masse Into Part-Time Jobs"
A prediction has emerged that the US economy will double in size five years from now due to AI development, but underemployment will also nearly double. Economic experts and policymakers analyze that worker retraining and wealth redistribution are urgent tasks.
According to the nonprofit organization Windfall Trust, 40 people including economists, policymakers, and technology experts gathered at the Peterson Institute for International Economics, a Washington DC think tank, to discuss how AI will affect the US economy in 2030.
In the discussion that day, an estimate emerged that AI would double gross domestic product (GDP) by 2030.
But there was also a warning that the underemployment rate would surge from the current 8% to 14% in 2030.
Bernie Sanders, a leading progressive politician, said on the 2nd of this month that he would introduce a bill to distribute 50% of AI company equity to the public. Republican Representative Jay Obernolte and Democratic Representative Lori Trahan also jointly proposed a bill that would mandate the collection of AI workforce data and the disclosure of risk assessments by AI labs.
Chinese Government Debt at 22.6 Quadrillion Won...Doubled in Five Years
China's government debt has doubled in five years, surpassing 100 trillion yuan for the first time in history.
According to Chinese media outlet Yicai, the People's Bank of China recently announced in its May financial statistics that the outstanding government debt balance as of the end of May rose 15.1% year-on-year to 100.6 trillion yuan (about 22.601 quadrillion won).
China's government debt stood at 94.92 trillion yuan (about 21.325 quadrillion won) at the end of last year and 99.37 trillion yuan (about 22.325 quadrillion won) at the end of April this year.
The Nikkei went on to point out that "most Japanese semiconductor companies, which are evaluated as competitive, have not formed direct strategic partnerships with Nvidia."
China's government debt appears to be mainly attributable to government bond issuance. The Chinese government has pursued an aggressive fiscal policy in recent years to respond to downward economic pressure. In particular, the government increased new bond issuance to channel funds into important national projects, and also issued large-scale bonds to replace and reduce the risk of local governments' hidden debt.
As Jensen Huang Skips Japan...'AI Marginalization' Theory Spreads Within
As Jensen Huang, CEO of US-based Nvidia, who leads the global artificial intelligence (AI) and semiconductor revolution, recently excluded Japan from his Asia tour, a sense of crisis is emerging within Japan. The assessment is that because Japan focuses on the back end of the semiconductor ecosystem—materials and equipment—there is no incentive for Nvidia to directly target it, unlike South Korea or Taiwan, from which Nvidia receives direct supply, or the United States or China, which are major buyers.
The Nihon Keizai Shimbun gave prominent coverage on the 14th, focusing on Huang's visits to China, Taiwan, and South Korea, questioning "whether Japan, with its weakened semiconductor industry, can join the mainstream of the global AI ecosystem."
