howdy, it’s Barsee again.

happy tuesday, AI family, and welcome back to AI Valley.

here are the biggest things worth knowing today:

• Claude Fable 5 was switched off by the US government

• SpaceX acquires AI coding startup Cursor for $60 billion

• Plus trending AI tools, posts, and resources

Let’s dive into the Valley of AI…

ADOBE

Creative AI is doing more than changing how creators work. It’s also shaping how they think about what’s possible

According to Adobe’s latest Creators’ Toolkit Report, nearly half (48%) of creators say that creative AI makes them feel more secure about their future as creators. In addition, 40% say that AI-assisted content consistently performs better.  Learn more on Adobe’s newsroom.

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THROUGH THE VALLEY

1/ Claude Fable 5 was switched off by the US government

More than 100 cybersecurity executives and researchers have signed an open letter urging the U.S. government to lift restrictions on Anthropic's Claude Fable 5 and Mythos 5 models. The move comes just days after Anthropic launched Fable 5, its new Mythos-class model designed for general use. On June 12, the company abruptly disabled both models after receiving a government directive restricting access for foreign nationals, including international customers, researchers, and even some Anthropic employees.

The restrictions followed concerns that a jailbreak could allow the models to identify software vulnerabilities and bypass some cybersecurity safeguards. The government order reportedly restricted access for foreign nationals, including international customers, researchers, and even some Anthropic employees. Unable to enforce those restrictions cleanly, Anthropic shut the models off entirely.

Why it matters:

Fable 5 went from one of the most anticipated AI launches of the year to being unavailable worldwide in less than three days. That's a level of government intervention the AI industry has rarely seen.

The dispute could shape how future frontier models are released. If advanced AI systems can face restrictions after launch, companies may need to spend as much time working with regulators and national security agencies as they do building the technology itself.

2/ SpaceX acquires AI coding startup Cursor for $60 billion

SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal, just days after its blockbuster IPO. Cursor has become one of the fastest-growing software companies in history, with millions of developers using its AI-powered coding tools to write, edit, and manage software. Before the deal, the company was reportedly raising funding at a $50 billion valuation and had attracted backing from Andreessen Horowitz, Thrive Capital, and Nvidia.

Why it matters:

SpaceX has told investors that AI could become one of its biggest businesses in the future, with the company estimating a $26 trillion opportunity across AI infrastructure and software. Cursor gives SpaceX a product already used by developers around the world and a direct foothold in one of the fastest-growing parts of the AI market.

TRENDING TOOLS

• Runway > The AI video generator is now available directly inside OpenAI's ChatGPT

• Uplift > Connects with your existing tools to build, deploy, and manage custom AI agents that automate repetitive workflows across your team

• Taste Lab > Analyzes any website's design DNA and transforms it into comprehensive token maps and reasoning briefs for AI-powered agents

WHAT I'M CONSUMING

• Inside Cursor's wild rise

• The web we know is going to disappear

• SpaceX & the Sentient Sun

THE VALLEY GEMS

What’s trending on social today:

THAT’S ALL FOR TODAY

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