THIS WEEK IN AI: Fable 5 Returns, OpenAI Might Nationalize, Meta Sells Compute

**Ejaaz** (0:00)
The king is officially back. Anthropic's flagship model, Fable 5, is finally available for everyone after being banned for almost two weeks by the US government. It is still the world's best model. I've been using it in the 12 to 24 hours since it's been launched. I'm super excited about it. There's a bunch of demos that we want to get into almost immediately, starting off with my favorite kinship as a child, Hogwarts and Harry Potter. What you're seeing in front of you is a completely simulated fabrication of the entire Harry Potter universe, starting off with Hogwarts. You'll notice that I can click into this universe immediately and start looking around. It's important to mention that this was built from a single prompt. I'm not entirely sure how long it took, but Fable 5 did this in one complete shot. If I press B, you'll notice something pretty spectacular. I'm on a broom and I'm flying around in probably my favorite childhood universe. Josh, I don't know if you're a Harry Potter fan, but this is pretty freaking awesome.

**Josh** (0:58)
It's unbelievable and I'm not sure if it was one shot. This is pretty impressive for one shot, but it was absolutely generated with Fable 5, and it's a testament to how impressive the model is and how happy I am that it's back. Thank God. Holy shit. It's been a long couple of weeks without it.

**Ejaaz** (1:12)
Oh, yeah.

**Josh** (1:12)
I mean, what's most amazing about this, I find, is that not only is it able to generate the map of Hogwarts, but it's able to generate the unique pieces. You just went into the dining room. This is the Weeping Willow tree. It has sound design built into it. It understands the physics and the scaling of the way things should be built and look, and now you're going over to play Quidditch.
It's this unbelievable awareness of the world and this unbelievable ability to generate these visual elements. This is so amazing, the fact that you're playing this in your browser, just by someone who prompted the Fable a couple of times and then deployed this. You could see it's pretty accurate. You have Hogwarts, you have the dining hall. Everyone has Fable until July 7th, I believe the day is, in which the limits get-

**Ejaaz** (1:53)
Unpaid subscriptions.

**Josh** (1:55)
Unpaid subscriptions and then the limits change a little bit, and this is subject to change as always. But currently right now, you have about a four to five day window to really play around with this as freely as it's likely ever going to be. The intention of showing this demo is to showcase that the possibilities of what you can make with this model really are pretty much endless, and I think the challenge to everyone now is now that there is this model that's out that's truly unbelievable in capability relative to anything we've seen, it's to go out and actually try unique and fun things. Like I would have never thought to go off and make a Hogwarts game that I can go and play. Traditionally, you buy this game, I have a Hogwarts game that I bought for $75, $80 on Xbox to play around with. So what types of difficult challenges do you have that you'd like to try, and that you never thought were possible? Like those are the things that I would encourage trying out with Fable 5 Really amazing model, very cool. You could see here, the second demo, this is all about physics and the physics understanding, and it shows it on a relative basis compared to the other models. It's just so far superior in its understanding of the worlds of physics. So a lot of these are visual examples. It does really well on basically all other types of work. So that's the thing is just try it out, see what you can do. I love this intro post that they shared, Fable is back, and it's now showing, and the whole sign lights up, and it's like, man, we are so back. So a really exciting day. If you're listening to this, go track Fable, go play around with it. It is an incredible model.

**Ejaaz** (3:12)
I want to talk about what has changed, because obviously we can't ignore the elephant in the room, which is this thing was banned for about two weeks. The US government specifically banned it because it presented itself as a potential cybersecurity threat across all national defense systems, which of course is very important. The TLDR of their blog post is essentially, they have added further safeguards and more monitoring as to how people use the specific tool. They'll be looking at every single prompt in terms of whether it could potentially be an attack vector on the US or anyone in general. And they've been working closely with partners from Glasswing, their collector, which they set up once they created Mithos, to make sure that their defense systems are hardened appropriately against this model. That being said, there was a lot of fear mongering around the re-release of this model. There was talks of potential KYC verification or potentially only allowing people in the US or American-born people to get access to this.