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Welcome to The Prompt by Kuro House, your daily AI update. Today, we’ve got some fascinating stories about AI regulation, secretive elite networks, and big moves in the AI startup world. Let’s dive right in.

First up, ever wonder how an exclusive club linked to Peter Thiel secretly ranks its members? WIRED uncovered that Dialog, a private network co-founded by Thiel, assigns grades to attendees based on wealth, fame, and influence. They even use algorithms to decide who sits with whom and who should be disinvited. Members are tagged with grades A, B, or C, where C is reserved for the most famous and influential, like actor Josh Brolin. Interestingly, Dialog also tracks political leanings and has a matchmaking system for networking and dating, refined by staff. This secretive grading impacts attendance fees, sometimes reaching tens of thousands of dollars.

Next, the White House is grappling with AI regulation in real time, and it’s proving to be quite chaotic. According to WIRED, Anthropic, a major AI lab, was forced by the Trump administration to take its advanced models, Claude Mythos and Fable 5, offline due to export control directives. The government hasn’t clearly explained what rules were violated, leaving Anthropic and the industry in the dark. This slapdash regulatory approach contrasts with the administration’s previous anti-regulatory stance and has left AI companies scrambling to keep officials informed. Experts say this could effectively create a licensing regime despite claims of voluntary cooperation.

On a related note, The Verge reports that Barret Zoph, OpenAI’s head of enterprise AI sales, has left the company again after just five months. Zoph had returned to OpenAI in January after a stint at Thinking Machines Lab, a competitor founded by former OpenAI CTO Mira Murati. His departure follows a history of abrupt exits and allegations of misconduct at his previous role. This shakeup comes as OpenAI focuses on enterprise and coding ahead of its planned IPO. OpenAI confirmed the departure but did not provide further comment.

Meanwhile, The Verge’s podcast Decoder delves deep into the tangled saga of Anthropic’s Fable 5 ban and what it means for AI regulation. After Amazon researchers discovered a potential jailbreak in Fable 5, Amazon CEO Andy Jassy alerted the Trump administration, triggering a 90-minute ultimatum for Anthropic to shut down the model. The administration then imposed export controls banning foreign nationals from accessing these AI models, forcing Anthropic to take them offline entirely. This heavy-handed approach has sparked industry-wide concern about unpredictable regulation and the US’s position in the global AI race. The situation highlights the challenges of regulating powerful AI technology without clear rules or expert understanding.

Finally, TechCrunch reports that Elastic, the enterprise software company, is acquiring AI startup DeductiveAI for up to $85 million. DeductiveAI specializes in AI-powered site reliability engineering, using AI to detect and resolve software bugs automatically. This acquisition aims to enhance Elastic’s observability platform, enabling real-time monitoring and failure resolution for customers. DeductiveAI’s founders bring experience from ThoughtSpot, Apache, Meta, and Databricks, and despite modest revenue, the deal reflects a trend of big tech buying AI-native startups to boost their product suites. Elastic’s move positions it strongly in the fast-growing AI SRE market amid increasing reliance on AI-generated code.

That wraps up today’s top AI stories. From secretive elite clubs to high-stakes government regulation and strategic startup acquisitions, AI continues to reshape industries and power dynamics. We’ll keep tracking these developments as they unfold, so stay tuned for more.