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Decrypt

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Technology

How should the government balance safety concerns with the development of new technology like AI?

The Trump administration has asked OpenAI to limit the release of its next model, GPT-5.6, to only a small set of government-approved partners before any wider release, citing security concerns, according to a source familiar with the matter. Why it matters: This marks the first time the U.S. government has preemptively asked an American AI company to restrict the launch of a model before release. Driving the news: The White House's Office of the National Cyber Director and the Office of Science and Technology Policy asked OpenAI to limit the rollout of GPT-5.6 as the administration builds a framework for testing and evaluating the security of new models, per the source. The Information reported earlier Thursday that OpenAI CEO Sam Altman shared the plans for a limited rollout in a memo to employees. "We've made clear to the U.S. government that this is not our preferred long term model, and will work with them and others in industry to achieve a more sustainable approach for future releases," Altman said in the memo, according to The Information. Between the lines: The source told Axios that OpenAI has been proactively working with the administration on the model release since before Anthropic revoked access to its frontier models, Fable 5 and Mythos 5, over a rare Commerce Department directive. The White House has been looped in on the capabilities of OpenAI's new model and has been able to preview its abilities. Behind the scenes: Altman discussed GPT-5.6 with Commerce Secretary Howard Lutnick on Wednesday, Axios has learned. Lutnick wanted to be sure all relevant parts of the government have tested and approved the model, a source familiar with the situation told us. The source said the government intervened because GPT-5.6 has "Mythos-like" capability, not because the administration is suddenly taking a heavier hand."This is what's happening with models of that caliber," the source said. The models are so powerful that the administration wants to be sure the co

United States
Technology

What are the potential benefits and risks of California using Anthropic AI in government services?

Gov. Gavin Newsom (D-CA) is deepening the state’s embrace of artificial intelligence by signing a deal with San Francisco-based Anthropic that will make Claude the first generative AI platform available across state agencies and local governments. The deal comes at a politically charged moment. While the Trump administration has moved to restrict the rollout of […]

United States
Politics

What does the Supreme Court's decision about presidential power to fire officials mean for the independence of government agencies?

The Supreme Court on Monday cleared the way for President Trump to freely fire officials from the Federal Trade Commission and most — though not all — agencies that have long been politically independent. Why it matters: It is a historic unraveling for agencies that have long been shielded from politics. The ruling will vastly expand presidential power and influence. The big picture: The ruling overturns Humphrey's Executor, a nearly century-old precedent that says independent agency commissioners cannot be fired without specific cause. What they're saying: "If anything more is left of Humphrey's, we overrule it," Chief Justice John Roberts wrote for the court. Trump celebrated the ruling on Truth Social, calling it a "BIG WIN" that confirmed he had the power to remove officials. "It is such an Honor to be the sitting President who won this Historic and Unprecedented Ruling, one of the most important ever given with respect to Presidential Powers." Yes, but: The 6–3 ruling came with a carve-out for the Federal Reserve, in line with earlier signals that Supreme Court sees the central bank in a different light. The ruling was released alongside a separate 5–4 decision blocking Trump from immediately firing Fed governor Lisa Cook.Roberts emphasized the ruling does not necessarily apply to the Federal Reserve, citing the central bank's "distinct historical tradition." Zoom out: The case centers on Trump's firing of two Democratic appointees, Rebecca Slaughter and Alvaro Bedoya. Trump said that allowing Slaughter to remain at the regulatory agency would be "inconsistent with my Administration's policies," according to the letter that announced the firing. Zoom in: With no Democrats set to return to the Republican-led agency, regulatory decisions will be made without real pushback or checks within the building. Democrats had a minority at the FTC to start with, but historically, dissents from the minority over major decisions were a transparent way to peek into decision-m

United States
Geopolitics

What are the potential impacts of the new US sanctions on Iran's crypto exchanges for both countries?

June 2 (Reuters) - The United States issued new Iran-related sanctions on Tuesday, targeting individuals and crypto exchanges, a notice on the Treasury Department website showed. The U.S. sanctioned four Iranian nationals and four Iran-based digital asset exchangesNobitex, Bitpin, Ramzinex and Wallex, the Treasury said. Foreign financial institutions and individuals may also be sanctioned if they engage in certain transactions with the four firms, the department added. (Reporting by Bhargav Acharya; Editing by Christian Martinez and Costas Pitas)

United States