Yesterday in AI: 12 June 2026 — US Kills Fable 5; Meta Implodes

TL;DR — The US Commerce Department ordered Anthropic to kill access to Fable 5 and Mythos 5 just three days after launch, citing a claimed jailbreak; Meta's 6,500-engineer Applied AI unit erupted in open revolt with an employee hijacking a company livestream and Zuckerberg admitting mistakes; SpaceX — now owner of xAI and Grok — raised $75B in the largest IPO in Wall Street history. --- 1️⃣ US Export Order Shuts Down Fable 5 and Mythos 5 Three Days After Launch - What: Commerce Secretary Howard Lutnick sent Anthropic a letter at 5:21 PM ET on June 12 ordering immediate suspension of Claude Fable 5 and Mythos 5 under export control law, citing a claimed jailbreak by an unnamed company. - Why it matters: It is the first time the US government has used export controls to force a commercial AI lab to pull a deployed frontier model offline worldwide — and Anthropic's own rebuttal says the triggering demonstration only exposed minor, previously known vulnerabilities. - Key number: 3 — days from Fable 5's public launch June 9 to its forced global shutdown. Anthropic had no practical alternative: a nationality-based export restriction covering foreign nationals inside and outside the US is impossible to enforce selectively on a shared cloud service, so both models came down for every customer globally. All prior Anthropic models remain accessible. An administration official who spoke to Axios framed the decision around national security — an unnamed company had demonstrated it could jailbreak Mythos, alarming the administration. Anthropic reviewed the demo and said it found only a small number of previously known, minor software vulnerabilities. Its public statement called the order a "misunderstanding" and said it was working to restore access, with no timetable given. The move carries a sharp irony: Anthropic's own candid hazard disclosures about Mythos-class capability levels appear to have accelerated the government's concern. The company that warned loudest abo