Canadian PM Carney Warns of AI Centralization Risk After U.S. Blocks Anthropic Models; Decentralized AI Tokens Rally 12% Weekly to $24.3B

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Canadian Prime Minister Mark Carney warned on Sunday that U.S. restrictions on Anthropic's advanced AI models expose the risk of over-reliance on a handful of American providers. Speaking in Ireland ahead of the G7 summit, Carney said the government order pulling Fable 5 and Mythos 5 offline for all users worldwide demonstrates why diversification is critical. "It is never a good idea to have one option," he stated, according to the Associated Press. The Commerce Department directive, reportedly sent by Secretary Howard Lutnick, forced Anthropic to disable both systems on national security grounds, though the company disputed the basis of the ban.

Decentralized AI tokens rallied following the ban, with the sector's market cap reaching $24.3 billion, up 12% over the week according to CoinGecko. Smaller compute and data networks led gains, while NEAR Protocol and Bittensor rose 15.9% and 27.9% respectively. Experts noted that while decentralized AI removes a single "kill switch," concentration of compute among few GPU suppliers still poses systemic risk.

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