The Fed was left vulnerable for months without access to Anthropic's Mythos AI model
Anthropic's advanced AI model Mythos poses a cybersecurity threat to the financial system.
1The AI Model That Raised Alarms at the Fed
In April, the Federal Reserve and Treasury Department held an emergency meeting with top bank CEOs. They warned about Anthropic's Claude Mythos Preview AI model, which could pose a serious cybersecurity threat to financial institutions. The model excelled at identifying software vulnerabilities, making it a double-edged sword for the financial sector.
2Project Glasswing and Access Issues
Anthropic released the Mythos model to select banks and institutions under Project Glasswing, a cybersecurity initiative. However, the Federal Reserve lacked access to the model for months, leaving it vulnerable while other institutions patched their systems. As of mid-July, it remained unclear whether the Fed had finally gained access to this critical AI tool.
3New Fed Chair's Efforts
Fed Chair Kevin Warsh testified before the Senate about ongoing efforts to secure access to Mythos and other cutting-edge AI models. Warsh emphasized that while the Fed isn't the decider on access, he's been advocating for financial institutions to get these tools to address vulnerabilities. The situation highlights the tension between private AI developers and public institutions.
4Anthropic's Model and Restrictions
Anthropic initially granted Mythos access to about 50 organizations including JPMorgan Chase, Amazon, Apple, and Google. However, in June, the company had to temporarily restrict access to Mythos 5 and Fable 5 models due to a federal export control directive citing national security concerns. These restrictions were later lifted, but created uncertainty about AI model governance.
5US-China AI Competition
Chinese open-weight AI models are gaining ground against leading US offerings from companies like OpenAI and Anthropic. Moonshot AI's Kimi K3 model has outperformed US models on some benchmarks, raising concerns about America's ability to maintain its AI leadership. Tech executives warn that regulatory confusion in the US could cede advantage to Chinese competitors.
6Chaos in AI Policy
The Trump administration's more active role in AI regulation has created policy uncertainty. The Fed's access struggles and the resignation of the Center for AI Standards and Innovation director after just three months highlight this turbulence. Experts warn that internal US policy chaos could undermine its position in the global AI race against China and other competitors.