DAILY SITUATION RECAP: - Claude Fable 5.1 - SB Energy files for IPO - Physical Superintelligence makes a splash with a $58M seed round - Senator Bernie Sanders calls for an AI pause in Fox News op-ed Anthropic releases Fable 5.1 & Mythos 5.1. Anthropic released its latest frontier model with two versions: Fable 5.1 is generally available, while Mythos 5.1 gives vetted cybersecurity and life-sciences researchers access to more advanced capabilities. Anthropic says Fable 5.1 improves on Fable 5 across coding, knowledge work, and long-running agentic tasks, while costing an estimated 25% less for typical workloads and up to 45% less for highly agentic work. Also announced was Enterprise Frontier Safeguards (EFS), a new data privacy system that works by storing customers’ data in their own cloud infrastructure instead of Anthropic’s. EFS will be made available to eligible enterprise customers starting this fall. OpenAI says Astra reaches Critical cyber capability. OpenAI says Astra is the first model it has classified at the “Critical” cybersecurity level under OpenAI’s Preparedness Framework, meaning it can devise and execute end-to-end cyberattacks against hardened targets based solely on a high-level goal. SoftBank’s SB Energy files for US IPO. SB Energy publicly filed for a NASDAQ listing (ticker: SBE). OpenAI has received warrants worth roughly $5.5B and NVIDIA has committed to invest $1.5B through a private placement priced at the IPO level. SB Energy reported revenue of $138.7M and a net loss of $3.21B for the six months ended June 30. Senator Bernie Sanders calls for a pause in AI development in a Fox News op-ed. Senator Sanders cites concerns over the environmental impact of data centers, the enrichment of the tech oligarchy, and the dangers of uncontrollable AI as reasons to pause AI development and seek arms-race-style agreements with China. Senator Sanders also cited the OpenAI Hugging Face incident as evidence that AI is becoming uncontrollable. Physical Superintelligence (PSI) emerges from stealth with a $58M seed round led by Breakthrough Energy Ventures. PSI is an AI lab focused on industrializing the discovery of new physics by creating virtual physicists. The company’s first commercial application is optimizing the power, cooling, and compute systems in AI data centers. South Korea doubles its AI/megaproject spend in its 2027 national budget. The government plans to allocate 24 trillion won ($17.5B USD) to semiconductor and AI-enabling infrastructure. OpenAI asks Gavin Newsom to sign youth AI safety bill in published letter. California SB 1119 would require companies that offer AI chatbots to determine users’ ages, conduct child-safety risk assessments, put default parental controls on teen accounts, and add other safety-focused features. AI security startup AIR raises $50M across two rounds: $10M led by Sequoia and $40M led by Greenoaks. AIR’s visibility product discovers what AI agents are being used across a company and its enforcement layer then blocks security risks.