AI's Brokenomics

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AI's Brokenomics

Ed Zitron<br>Jun 15, 2026<br>29 min read

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If you liked this piece, you should subscribe to my premium newsletter. It’s $70 a year, or $7 a month, and in return you get a weekly newsletter that’s usually anywhere from 5,000 to 18,000 words, including vast, detailed analyses of NVIDIA, Anthropic and OpenAI’s finances, and the AI bubble writ large (updated to version 3.0 last week). My Hater's Guides To the SaaSpocalypse, Private Credit and Private Equity are essential to understanding our current financial system, and my guide to how OpenAI Kills Oracle pairs nicely with my Hater's Guide To Oracle.<br>Last Friday, I published the first of a two-part series where I explore the many bubbles that form the basis of the AI bubble — including the tokenomics bubble, and the cult of personality bubbles surrounding Sam Altman and Dario Amodei.<br>Subscribing to premium is both great value and makes it possible to write these large, deeply-researched free pieces every week.<br>Soundtrack — Local H — Manifest Destiny (Part 2)<br>We live in a time of deep uncertainty. On Friday, Anthropic was forced to shut off access to its Mythos and Fable models after the US government imposed an export control ban barring any non-US citizens both inside and outside of the country from accessing them.<br>To explain, Fable is basically Anthropic’s supposedly “too dangerous to release” Mythos model with guardrails forbidding you from what appears to be anything biological weapons and cybersecurity, except it was jailbroken within days by Amazon researchers, leading to Amazon CEO Andy Jassy (and other unnamed companies) reporting it to the US commerce department which gave Anthropic 90 minutes to roll back Fable and Mythos due to “national security risks.” Semafor also reports that this all might have happened because China got access to Mythos.<br>This situation is a complete mess. PCast co-chair and podcaster David Sacks claimed that Anthropic refused to fix the issue, claiming it wasn’t serious, per Business Insider:<br>During the calls, Amodei tried to clear up what he assumed was a misunderstanding. He pushed back on the administration's concerns, defended the guardrails, and argued that the type of bypass that occurred, which he believed to be specific, did not pose the same risk as a broader "jailbreak" that would allow it to be used without any of the guardrails put in place by Anthropic.

In a blog post after the export controls were put in place, Anthropic said that "no testers have yet been able to find a universal jailbreak — a jailbreak method that can very broadly bypass the model's safeguards, unblocking a wide range of cyber capabilities," and that total avoidance of any jailbreaks isn't now possible for them or any other companies. They defended their systems, which they said "are so strong that many users have complained that they are overly broad."<br>A White House official told Business Insider that “export controls were a last resort after begging them for hours to work with us”:<br>Shortly after the call, the Trump administration imposed its export control on the Fable 5 and Mythos 5 models, citing national security authority and banning their use by foreign nationals, according to Anthropic. The company said the "net effect" of the order was to "abruptly disable" the models for all customers "to ensure compliance."<br>Anthropic claims no begging occurred, and all it got was (as noted above) 90 minutes. According to Axios, the company has dispatched some of its senior technical staff to D.C to negotiate with the Trump Administration, after virtual meetings with White House officials failed to bear fruit.<br>In any case, this is a reaping/sowing for the ages. Dario Amodei has spent years selling AI models based on completely fantastical scaremongering about the “rapid advancements” of large language models, cresting the hill in April when he announced Claude Mythos, an LLM that was “too powerful to release” until June 2, when it was released to 150 organizations in 15 countries, and June 9, when it was released with said guardrails under the name “Fable.”<br>Fable is, of course, just another large language model that’s an indeterminate amount of “better” than the last one. Having talked to multiple people that claim to have used Mythos and deeply enjoyed Davi Ottenheimer’s takedown of its system card, it appears to be much the same model but with security protocols flimsy enough to last only a few days before anonymous researcher Pliny The Liberator broke them. Anthropic has not created recursive self-improvement, nor has it done much more than create a very large language model that gets higher benchmarks in tests built for large language models, wrapped in a veneer of mysticism and panic-hype built to scare organizations in paying them to use it.<br>The problem with this kind of hype is that you can only use it for so long before somebody believes...