Anthropic’s decision to cut off access to its latest artificial intelligence models in response to a U.S. order halting access to foreign nationals highlights the risks of centralized control in AI and could increase demand for decentralized alternative models, Grayscale said.
Grayscale Research Director Zach Pandle said in a Monday memo that Anthropic’s order blocking access to Fable 5 and Mythos 5 “demonstrates the centralization of frontier AI technology and drives home the need for decentralized alternatives.”
“We expect demand for Bittensor and decentralized AI like it. $TAO The token will continue to rise as investors look for alternatives,” Pandol said.
The U.S. government on Friday directed Anthropic to cut off foreigners’ access to its models, citing national security concerns. Anthropic then disabled all users’ access to Fable 5 and Mythos 5 in order to comply with the order.
Pandl said that within 12 hours of Anthropic cutting off access to its latest model, Bittensor’s $TAO The token rose 30% to a three-week high of $283 on Monday as users sought decentralized alternatives.

$TAO It has outperformed the broader crypto market over the past week. sauce: CoinGecko
Pandl explained that Bittensor aims to provide “an alternative vision of AI based on decentralized principles” and provide access to AI resources through an open, global, decentralized network.
“Think of it as Bitcoin for AI.”
“Access to artificial intelligence is becoming an increasingly important economic resource,” Pandol added. “As AI capabilities continue to improve, governments and AI research institutes will play an increasingly important role in determining who has access to these tools and under what conditions.”
Artificial suspension sets precedent
Colton Malkerson, co-founder of EdgeRunner AI, argued that this event marks a breaking point for enterprise data independence.
“We’ve been saying for a while that companies are ‘borrowing’ intelligence from big labs, but this is even worse,” he said in a note to Cointelegraph.
“It’s like renting your intelligence. It’s like if you’re renting a house and the landlord can break the lease at any time he wants, kick you out, and inspect all the property while you’re a tenant.”
Technology entrepreneur and author Bret Hart said in a note to Cointelegraph that Anthropic’s order to block access to its U.S. models was “precedented.”
“The moment the government is able to silence commercial AI models overnight, with no public hearings, no technology disclosures, and no appeals process, every lab in America is now operating under an invisible ceiling.”
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