Why Anthropic's new Mythos AI model has Washington and Wall Street worked up
Copyright AP Photo/Richard Drew, File
Anthropic's most powerful new AI model, Mythos, is too dangerous to release to the public, the company says, sparking urgent discussions with governments and financial regulators.
Anthropic is in discussions with the US government over its new Mythos AI model, which the company has said is too powerful to release to the public as it "poses unprecedented cybersecurity risks".
The banking industry is also sounding the alarm.
“The government has to know about this stuff,” Anthropic’s co-founder said on Monday at the Semafor World Economy event in Washington.
“Absolutely, we're talking to them about Mythos, and we'll talk to them about the next models as well," he added.
Referencing the public dispute with the government, which led to the company being labelled a supply-chain risk last month, he said, “I don't want that to get in the way of the fact that we care deeply about national security."
The supply-chain risk designation followed the collapse of negotiations over Anthropic's efforts to limit how the US defense department can use its AI models.
The move comes after Treasury Secretary Scott Bessent convened a meeting of senior American bankers in Washington to discuss the Mythos model last week.
The meeting encouraged the banking executive to use Antropic’s Mythos model to detect vulnerabilities, according to Bloomberg.
Anthropic also said it would limit the release of its new AI model to a few tech and cybersecurity firms. The list includes Amazon, Apple and JP Morgan Chase.
Goldman Sachs, Citigroup, Bank of America and Morgan Stanley are reportedly testing the Anthropic model too, Bloomberg reported.
On Monday, the United Kingdom’s government AI Security Institute (AISI) issued a warning that Mythos was a “step up” over previous models in terms of the cyber threat it posed.
Meanwhile, the Financial Times reported that the UK financial regulators are also discussing Mythos’ potential risks.
Anthropic is in discussions with the US government over its new Mythos AI model, which the company has said is too powerful to release to the public as it "poses unprecedented cybersecurity risks".
The banking industry is also sounding the alarm.
“The government has to know about this stuff,” Anthropic’s co-founder said on Monday at the Semafor World Economy event in Washington.
“Absolutely, we're talking to them about Mythos, and we'll talk to them about the next models as well," he added.
Referencing the public dispute with the government, which led to the company being labelled a supply-chain risk last month, he said, “I don't want that to get in the way of the fact that we care deeply about national security."
The supply-chain risk designation followed the collapse of negotiations over Anthropic's efforts to limit how the US defense department can use its AI models.
The move comes after Treasury Secretary Scott Bessent convened a meeting of senior American bankers in Washington to discuss the Mythos model last week.
The meeting encouraged the banking executive to use Antropic’s Mythos model to detect vulnerabilities, according to Bloomberg.
Anthropic also said it would limit the release of its new AI model to a few tech and cybersecurity firms. The list includes Amazon, Apple and JP Morgan Chase.
Goldman Sachs, Citigroup, Bank of America and Morgan Stanley are reportedly testing the Anthropic model too, Bloomberg reported.
On Monday, the United Kingdom’s government AI Security Institute (AISI) issued a warning that Mythos was a “step up” over previous models in terms of the cyber threat it posed.
Meanwhile, the Financial Times reported that the UK financial regulators are also discussing Mythos’ potential risks.
AI expansion drives up profits for Dutch semiconductor giant ASML
Copyright AP Photo/Peter Dejong
ASML, the Dutch semiconductor giant, has posted a rise in net profits to €2.76 billion for the first quarter of 2026 representing a 15% increase compared to the same quarter in the previous year.
The most valuable technology company in Europe, ASML, reported on Wednesday that the ongoing expansion of AI infrastructure has significantly enhanced its bottom line.
The Dutch firm delivered net profits of €2.76 billion for the first quarter of this year, representing a 15% increase compared with the same period in 2025.
As a pivotal player in the international supply chain of semiconductors, ASML produces the lithography machines required to create the world's most advanced microchips.
Following a strong start to the year, the company now expects full-year sales for 2026 to reach between €36 billion and €40 billion, an increase from its previous forecast range of €34 billion to €39 billion.
According to the firm's CEO, Christophe Fouquet, the semiconductor industry's growth outlook continues to solidify, particularly as logic and memory customers accelerate their capacity expansion plans.
The company's first-quarter revenue reached €8.77 billion, placing it at the higher end of previous guidance. This performance also represents a notable increase from the €7.8 billion recorded during the same period in 2025.
In particular, South Korea has emerged as the company's largest market this quarter, accounting for 45% of system sales as manufacturers there ramp up production for AI-related memory chips.
To maintain its competitive edge and manage costs, ASML underwent an organisational restructuring early last year, which resulted in approximately 1,700 layoffs, primarily within leadership positions in the Netherlands and the US.
The most valuable technology company in Europe, ASML, reported on Wednesday that the ongoing expansion of AI infrastructure has significantly enhanced its bottom line.
The Dutch firm delivered net profits of €2.76 billion for the first quarter of this year, representing a 15% increase compared with the same period in 2025.
As a pivotal player in the international supply chain of semiconductors, ASML produces the lithography machines required to create the world's most advanced microchips.
Following a strong start to the year, the company now expects full-year sales for 2026 to reach between €36 billion and €40 billion, an increase from its previous forecast range of €34 billion to €39 billion.
According to the firm's CEO, Christophe Fouquet, the semiconductor industry's growth outlook continues to solidify, particularly as logic and memory customers accelerate their capacity expansion plans.
The company's first-quarter revenue reached €8.77 billion, placing it at the higher end of previous guidance. This performance also represents a notable increase from the €7.8 billion recorded during the same period in 2025.
In particular, South Korea has emerged as the company's largest market this quarter, accounting for 45% of system sales as manufacturers there ramp up production for AI-related memory chips.
To maintain its competitive edge and manage costs, ASML underwent an organisational restructuring early last year, which resulted in approximately 1,700 layoffs, primarily within leadership positions in the Netherlands and the US.
Navigating geopolitical headwinds and export controls
Despite the positive financial results, ASML remains a central figure in the escalating trade tensions between Washington and Beijing.
The company reported that its sales to China accounted for 33% of its revenue in 2025, a decrease from 41% the year before.
This shift comes as the US continues to lead a coordinated effort to restrict the export of high-end semiconductors to China, citing concerns over military applications.
ASML has previously cautioned that its Chinese sales could see further declines this year due to these regulatory pressures.
However, Fouquet noted that the updated sales forecast for 2026 is designed to accommodate various potential outcomes regarding ongoing discussions over export controls.
Ben Barringer, head of technology research at Quilter Cheviot, also highlighted the geopolitical nuances of the company's position, noting that "the Dutch prime minister met with President Trump so we can only assume that the issue came up in discussion."
US President Donald Trump is scheduled to visit China on 14 May, marking the first US presidential trip to China in nearly a decade.
FILE. Trump and Xi during the last US presidential state visit to China, Nov. 2017 AP Photo/Andy Wong
Despite the positive financial results, ASML remains a central figure in the escalating trade tensions between Washington and Beijing.
The company reported that its sales to China accounted for 33% of its revenue in 2025, a decrease from 41% the year before.
This shift comes as the US continues to lead a coordinated effort to restrict the export of high-end semiconductors to China, citing concerns over military applications.
ASML has previously cautioned that its Chinese sales could see further declines this year due to these regulatory pressures.
However, Fouquet noted that the updated sales forecast for 2026 is designed to accommodate various potential outcomes regarding ongoing discussions over export controls.
Ben Barringer, head of technology research at Quilter Cheviot, also highlighted the geopolitical nuances of the company's position, noting that "the Dutch prime minister met with President Trump so we can only assume that the issue came up in discussion."
US President Donald Trump is scheduled to visit China on 14 May, marking the first US presidential trip to China in nearly a decade.
Market reaction and future prospects
At the time of writing, ASML shares have risen 1.4% in the European trading session.
Market analysts have reacted positively to the results, noting the company's ability to exceed expectations despite macroeconomic uncertainty and suggesting that the overall data remains robust.
Barringer stated that the firm provided a decent beat in its latest results but nothing exceptional for what is an in-demand company with an enviable market position.
He further observed that "the company delivered a 2% beat on expectations when it came to revenues, while earnings per share beat by about 10%".
As AI demand continues to drive the logic and memory markets, ASML appears well-positioned to navigate the complexities of the current technological landscape.
At the time of writing, ASML shares have risen 1.4% in the European trading session.
Market analysts have reacted positively to the results, noting the company's ability to exceed expectations despite macroeconomic uncertainty and suggesting that the overall data remains robust.
Barringer stated that the firm provided a decent beat in its latest results but nothing exceptional for what is an in-demand company with an enviable market position.
He further observed that "the company delivered a 2% beat on expectations when it came to revenues, while earnings per share beat by about 10%".
As AI demand continues to drive the logic and memory markets, ASML appears well-positioned to navigate the complexities of the current technological landscape.
Allbirds shares surge over 550% as footwear firm trades shoes for AI business
In a radical strategic overhaul, Allbirds is divesting its footwear business while securing $50 million (€42.4 million) in new financing to acquire GPUs and rebrand as NewBird AI.
In a decisive break from its origins as a sustainable footwear maker, Allbirds is exiting consumer products entirely to reposition itself as a provider of AI compute infrastructure, according to a company announcement.
Shares of the firm rose over 550% in the first few hours of the New York trading session on Wednesday.
The move comes as the business seeks to capitalise on strong demand for specialised computing resources, redirecting capital away from its legacy operations towards high-growth opportunities in AI.
Allbirds has already entered into a definitive agreement to sell its brand and all footwear assets to American Exchange Group. The purchaser plans to maintain the Allbirds legacy business and continue supplying products to customers.
Subject to shareholder approval, the transaction is expected to conclude in the second quarter of 2026.
Upon completion, and subject to approval, the company intends to issue a special dividend to eligible shareholders in the third quarter of 2026, on 20 May. This step effectively separates the footwear operations from the listed entity, allowing the latter to pursue a new direction without the drag of its former activities.
NewBird AI targets AI compute infrastructure
To finance the transition, Allbirds has executed a definitive agreement for a $50 million (€42.4m) convertible financing facility with an institutional investor.
The investment bank Chardan is acting as a placement agent on the deal, which is scheduled to close in the second quarter of 2026 and remains subject to shareholder approval at a special meeting anticipated for 18 May.
Proceeds from the facility will initially be deployed to purchase high-performance GPU assets. These will underpin the provision of dedicated AI compute capacity, offered to customers under long-term lease arrangements, according to the announcement.
In tandem with the pivot, the company anticipates changing its corporate name to NewBird AI. The rebranded business aims to evolve into a fully integrated provider of GPU-as-a-Service and AI-native cloud solutions.
Plans include growing its neocloud platform through expanded compute offerings, strengthened partnerships with customers and organisations and the evaluation of strategic merger and acquisition opportunities.
The announcement highlights unprecedented structural demand for AI compute, driven by rising global enterprise spending on AI services and data centre investments.
At the same time, procurement lead times for advanced hardware are lengthening, North American data centre vacancy rates have hit historic lows and available compute capacity through the middle of 2026 is already fully committed.
Such conditions, the company notes, are leaving enterprises, developers and research organisations struggling to secure the resources needed to train and run AI models at scale.
However, moves of this nature also raise questions about the risks of excessive speculation and the potential formation of an AI investment bubble in certain market segments.
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