Asian Startups Fill Void Left by US AI Export Ban

The US government's ban on exporting Anthropic's powerful AI models, Mythos and Fable 5, has created an opportunity for Asian startups to shine. Chinese cybersecurity firm 360 has unveiled Tulongfeng, an AI tool that can reportedly compete with Mythos, while Tokyo-based Sakana AI has launched Fugu, a model that stands shoulder-to-shoulder with leading models like Fable 5. Sakana AI's spokesperson described the release of Fugu as coincidental, but the company is certainly capitalizing on the moment, advertising its model as a way to deliver frontier capability without the risk of export controls. Fugu is designed to orchestrate access to other models through their APIs, making it a valuable tool for agents. The launch of these new models comes as the US government's ban on Anthropic's models continues, with no end in sight. Sakana AI's co-founder, Ren Ito, has urged the US federal government to prioritize preserving access to AI for its closest allies, arguing that AI should be developed together, not hoarded. Meanwhile, 360's founder, Zhou Hongyi, has described vulnerability-finding AI as a national strategic asset, highlighting the risk of one-way transparency. As local alternatives like Fugu and Tulongfeng fill the gap left by US companies, it remains to be seen whether US companies can win back trust if the ban is ever lifted. One thing is certain, however: the Asian startups are seizing the moment, and their models are already making waves in the industry.