Anthropic publicly claims it doesn't want to ban open weights, but its three positions — restricting chip sales to China, punishing distillation, and a government process to approve models — add up to a de facto ban and are a subtle form of regulatory capture; the letter's signers piled on mainly because everyone's business model improves if the two frontier labs can't extract ~$100B of revenue this year.

3:55is real. And while in public um anthropic are saying we don't want to ban open weight the truth is the combination of saying we don't want to sell stuff to China chips to China we can argue both sides of that actually second we want to really punish people for distillation right and then the third point they made is we want some kind of regulatory process to approve models right that's

4:22the recommended thing from the letter today and there's no doubt in my mind that the third one in particular, can you imagine a regulatory process for approving models that ultimately approves all those Chinese open source models? It is a subtle form of regulatory capture. Yeah, sounds reasonable on the surface, but the likely result of it would be dramatically restricted competition, especially from the open open way Chinese models. So, yeah, kind of fast

4:49forwarding to the end and working back. While they're not saying they want to ban these things, they're advocating a series of steps that would add up to de facto banning or at least slowing them down. And that's what's driving everyone else to say, "Hey, no, we don't want this." As often is the case. And that's why I kind of there are some arguments on both sides and some of the issues,

5:10right? I think the chip is you could go either way. And Jensen ain't going to go for the don't sell chips to China argument, right? I think there are national security discussions that could be had around that. So, it's not like it's all correct on one side. Everyone's not piling on to that letter because they're like, "Oh my god, Jensen, you're a god and I want to agree with you."

5:27Though he is a god and you should agree with him. They're piling on because they're like, "Everyone's business model gets a lot better if the two frontier labs can't extract about a hundred billion dollars of revenue this year from the businesses." >> So, is Sam signing is Sam signing this through gritted teeth? Like, [ __ ] I have to sign this. They're signing this publicly while at the same time lobbying

5:50in Washington right alongside Antropic for a regulatory process. >> Brilliant marketing by Sam. Brilliant marketing. Like it leaves Anthropic being the deep dark villain again. >> I think it's pretty brilliant. I think I think there's no there's there's no upside in in challenging it right from his perspective. So at least have the appearance of winning on the battlefield, win on the streets, right? um if we can't keep up, I mean the rate

6:14of change is accelerating in LLMs. It's accelerating and so is whether it's really true with the regulators saying we'll win on the battlefield and we and we you know and and the ideal outcome at the end of the day is US-based solutions here is it's it's it's uh it uh it it it knocks the wind out of the critics. It it does. But oddly enough, I mean,