Anthropic’s decision to shut down access to its latest AI models after the U.S. issued an order to suspend access to foreigners highlights the risks of centralized control over AI, which could drive demand for decentralized alternatives, Grayscale says.

Head of Grayscale Research, Zach Pandl, said in: note on Monday, the order to cut off access to Anthropic Fable 5 and Mythos 5 shows “centralized control over pioneering artificial intelligence technology and highlights the need for decentralized alternatives.”

“We expect demand for decentralized AI like Bittensor and its TAO token to continue to grow as investors look for alternatives,” Pandl said.

On Friday, the U.S. government ordered Anthropic to suspend access to its models for foreigners for national security reasons. Anthropic then blocked access to Fable 5 and Mythos 5 for all users to comply with the order.

Pandl noted that in the 12 hours after Anthropic cut off access to its latest models, Bittensor’s TAO token surged 30% as users sought a decentralized alternative, hitting a three-week high of $283 on Monday.

Last week, TAO outperformed the broader cryptocurrency market. Source: CoinGecko

Pandl explained that Bittensor offers an “alternative vision of artificial intelligence based on decentralized principles” that aims to provide access to artificial intelligence resources through an open, global, decentralized network.

“Think of it as Bitcoin for artificial intelligence.”

“Access to artificial intelligence is becoming an increasingly important economic resource,” Pandl added. “As AI capabilities continue to improve, governments and AI labs will play an increasingly important role in determining who can access these tools and under what conditions.”

Anthropic suspension sets a precedent

Colton Malkerson, co-founder of EdgeRunner AI, argued that this event represents a turning point for corporate data independence.

“We have been saying for some time that companies are ‘renting’ their intelligence from large labs, but the situation is even worse,” he said in a note to Cointelegraph.

“It’s like renting intelligence, like renting a house, and the landlord can cancel the contract whenever he wants, kick you out, and look at your entire property while you’re a tenant.”

Related: Amazon warning triggered US attack on Anthropic AI models: reports

Tech entrepreneur and author Brett Hurt said in a note to Cointelegraph that the U.S. order for Anthropic to cut off access to its models “set a precedent.”

“At a moment when the government can silence a commercial model of artificial intelligence overnight, with no public hearings, no technical disclosures, no appeals process, every lab in America is now operating under an invisible ceiling.”

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