How Chinese AI models are closing the gap on Anthropic and OpenAI
by Cade Metz, Karen Weise and Meaghan Tobin · Australian Financial ReviewCade Metz, Karen Weise and Meaghan Tobin
Jul 2, 2026 – 5.00am
In mid-June, artificial intelligence company Anthropic shut down its two most powerful AI systems after an unexpected demand from the US government to cut access to them.
Days later, a Chinese start-up, Z.ai, released an AI model that is nearly as powerful as Anthropic’s models, Fable and Mythos. But Z.ai’s new technology costs much less to use, and no one in the United States was putting restrictions on it.
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