Counterintuitively, this is a huge win for misAnthropic and other closed labs in the US. They can nerf the models, ask for IDs from users and do what it takes to comply with whatever regulation they've been fighting for.
Foreign labs releasing open source models won't be able to comply, and as a result open source models will remain stunted at pre-mythos levels or their use will be criminalized.
We should look past the petty fights these closed labs have, and see their common interest in banning open source and/or local models.
Why would foreign (relative to the US) models suddenly sit still? There's enormous incentive to improve; surely they'll be able to figure out how just like their American counterparts?
We've seen this movie before with crypto export bans in the 90s. The rest of the world caught up and then surpassed the US very quickly - and that was without the enormous financial incentives of AI.
The US will try to ban them, for being too dangerous or for being an IP violation[0] of some companies we've deemed too big to fail.
[0] lmao how ironic
Even without those incentives, the messaging is clear: you don't want your inference to be shut arbitrarily. Export controls are nothing new but a lot of people have underestimated them due to globalization and the general nature of software. This is a good opportunity for entities around the world to get their setup going.