AI Summary
5 min readA Chaotic Week in AI: Bans, Breakthroughs, and the Open Source Surge
The past few weeks have been among the most eventful in recent AI history. The US government forced Anthropic to hold back its Mythos model and then blocked OpenAI from releasing GPT-5.6, even deciding which customers can get access — effectively locking startups out. Meanwhile, a Chinese food delivery company called Z AI open-sourced GLM 5.2, a near-frontier model that the AI community is calling the "open source GPT-3.5 moment." And Anthropic quietly dropped Sonic 5, a faster, cheaper model that undercuts its own Opus line on price while delivering strong agentic coding performance. To make sense of it all, host Alex assembled three AI founders: Victor Perez of Korea AI (creative image generation), Div Garg of AGI Inc. (on-device mobile agents), and Andrew Berman of RunLayer (enterprise agent control planes).
The Regulatory Crackdown and Its Fallout
The US government's decision to force OpenAI to hold back GPT-5.6 and restrict which customers can access it marks a dramatic shift from the free-range AI environment of just months ago. Andrew Berman called the policy "insane," arguing it gives China and other actors room to encroach on US technological supremacy. "Open source models are being distilled from our world-class models," he said, "and we should be pushing ahead as fast as possible."
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What you'll learn
- 1 (01:08) **US Government Blocks Frontier AI Models** - The panel reacts to the US forcing OpenAI to hold back GPT-5 and the continued ban on Anthropic's Mythos and Fable 5.
- 2 (02:47) **Regulatory Blast Radius and Creative AI** - Victor explains why government regulation of AI is unlikely to hit the creative domain anytime soon.
- 3 (04:15) **On-Device Action Models vs. Regulatory Pressure** - Div Garg defines Large Action Models (LAMs) and explains why his company AGI Inc. is outside the current regulatory blast radius.
- 4 (07:45) **Enterprise Demand for Open Source and Fable's Impact** - Andrew Berman reports that enterprises are increasingly demanding open-source models like GLM 5.2, driven by rising inference costs.
- 5 (11:54) **Should AI Startups Engage with Washington?** - The panel debates whether smaller AI companies have a moral responsibility to lobby for their interests.
- 6 (12:48) **Why Korea Released a "Raw" Model (K2, K2 Raw, K2 Turbo)** - Victor breaks down the strategic decision to release a non-post-trained model to the open-source community.
- 7 (16:31) **Training Small Action Models and the Data Loop** - Div explains how AGI Inc. trains its on-device models using real user data.
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Show Notes
This Week In Startups is made possible by:
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Today’s show:
The US government won’t let you use the most powerful releases from US AI labs… but a Chinese lab is giving away their latest frontier model for free.
This week, we’ve got three AI CEOs building in image generation (Victor Perez of Krea), mobile agents (Div Garg of The AGI Company), and enterprise governance (Andrew Berman of Runlayer). Together, they’re breaking down what’s really happening underneath all this chaos, and why the industry’s more focused on “minimum viable intelligence” over breaking benchmarks.
Guests
Victor Perez on X: https://x.com/viccpoes
Krea AI: https://www.krea.ai/
Krea 2 Raw and Turbo on Hugging Face: https://huggingface.co/krea/Krea-2-Raw
Div Garg on X: https://x.com/divgarg
The AGI Company: https://theagi.company/
Andrew Berman on X: https://x.com/berman66
Runlayer: https://www.runlayer.com/
Relevant Links
Anthropic: “Introducing Claude Sonnet 5”: https://www.anthropic.com/news/claude-sonnet-5
Z.ai: GLM-5.2: https://docs.z.ai/guides/llm/glm-5.2
Yuchen Jin X post: “GLM-5.2 is the open source Claude moment”: https://x.com/Yuchenj_UW/status/2071278256817574297
TechCrunch: GPT-5.6 restricted rollout coverage: https://techcrunch.com/2026/06/26/openai-limits-gpt-5-6-rollout-after-government-request-says-restrictions-shouldnt-be-the-norm/
AndroidWorld benchmark on GitHub: https://github.com/google-research/android_world
The Information Higgsfield valuation article: https://www.theinformation.com/articles/ai-video-startup-talks-quadruple-valuation-5-billion
Agentic AI Foundation (AAIF): https://aaif.io/
Tomasz Tunguz: “When AI Costs More Than The Engineer”: https://tomtunguz.com/ai-spend-breakeven-2029/
Fortune Runlayer raise coverage: More from this podcast