State-Backed Models, You Don't Say?
The model vendors are caching and stealing
Bloomberg is finally catching on, reporting that the U.S. may subsidize frontier models. No kidding. I think we first mentioned that was coming over a year ago. Others were earlier than us to mention that fact. State subsidy was part of the regulatory capture strategy by Anthropic and OpenAI.
When Claude and GPT are fully entrenched in Govt. operations (they already are), and all user data is cached (Fable/Mythos already caches everything from every user for 30 days, I’m not sure about GPT 5.6), Enterprise customers will balk. They won’t want Anthropic nor OpenAI caching their proprietary data and IP, much less the NSA, DoD and IRS doing the same.
Enterprise customers will walk en masse once they figure out that the model companies are stealing their IP (many already have figured this out), and will move to open source models if they haven’t already.
Anthropic and OpenAI will have 90% of their Revenue coming from Government in 3-5 years if they don’t stop caching and stealing.