OpenAI GPT 5.6 Delayed for the Exact Reasons We Wrote About
Government's money grab, I mean "regulation", is such a farce, and we just let it happen. Thank you, may I have another.
We told you last week that the Federal Government has delayed Codex 5.6. Now it is being reported that our hypothesis is indeed what is transpiring. OpenAI will stagger its 5.6 model release while the Federal Government develops a framework for evaluating models.
Meanwhile China’s opensource models are full steam ahead. Every chip stock should trade down, the model companies should re-think their IPO strategy as they are now quasi utilities.
Guess what? It will get worse. The Federal “framework” is a way for Government to stick its fat nose in the private sector’s business so that career politicians may execute a money grab - and a recurring one at that.
Every year liberty and the value of the Dollar erode.
I hope China’s models’ hollow out the U.S. AI industry. Let it collapse, then maybe entrepreneurs will push back. If AMZN, GOOGL, META, MSFT, NVDA, ORCL, and SPCX pushed back hard, and did so collectively, there would be change in Government as I just listed some of the largest political donors. However, everyone wants to go along to get along.
Game over. Alibaba, High-Flyer (DeepSeek), Huawei, Tencet, Xiaomi, Z.ai and others are going to steamroll Anthropic and OpenAI (Google and Grok.ai do not make the short list).
We did it to ourselves. Self-inflicted wound led by selfish Dario Amodei - who was seeking a way to box out competition from opensource model providers, and by corrupt Government money grabbers.
The U.S. will regret these regulatory actions. 100% guaranteed the U.S. AI industry falls behind China. China has more qualified scientists, better power generation capacity, and a better regulatory framework.
This is the biggest Technology story of the past 20 years, at least. The advent of the public Internet in the early 1990s is the last story that rivals this. This is a bigger story than mobile, bigger than bullshit crypto, bigger than SaaS, and we dropped the ball. Bigtime.