A phone call from Amazon's Andy Jassy triggered a chain of events that are rewriting the rules of AI regulation.

Disagreements over Fable 5’s guardrails and a workaround led to the company’s most advanced systems being taken offline.

The U.S. government’s latest battle with Anthropic has revived long-simmering concerns throughout the AI industry that the White House has placed a bullseye on their reliance on…