It indeed is a wake up call. But at the same time the strong data protection laws, copyright and privacy laws make it extremely difficult for a European company to develop a frontier model. Activist lawyers can sue and drag startups for training their model on a news article and the legal expenses would be higher than the engineering costs.
ChatGPT was released 4 years ago and still out of 27 countries in EU, only Mistral based in France has a model closer to a frontiers and IMO EU has already lost the race and still trying to catch up to yesterday models.
Google Deepmind is headquartered in the UK and has R & D in multiple countries. How would the US ban non-nationals from using something that is largely developed outside the US by people who are not US nationals?
Mistral might be a bit behind but this might give them a lot more business.
Most of all, a lot more people will switch to Chinese models. They will catchup, soon enough.
I have not had much of a chance to try Fable, but it did not seem better than Opus for what I tried it out on. Maybe its better on bigger jobs/vibe coding type tasks which is not something I do anyway.
Certainly to stop people with US businesses from doing business with Iran or Cuba. To stop an American owned British company from doing business in the UK? To stop a French company doing business in France? To stop either doing business with the rest of the world? To stop anyone doing business with China?
They absolutely can impose sanctions on foreign companies by restricting their access to US markets, investments and penalizing US banks doing business with them.
For some EU companies this is irrelevant, but for global companies this becomes a problem.
So did they stop any Iranian companies doing business with Iran? Did they stop China or Russia doing business with Iran? If Google Deepmind has to stop doing business with non-US citizens what will they do with their R & D in the UK and other countries? Will Mistral stop doing business in France? Will the Chinese AI companies stop doing business with everyone else (including China?) to retain access to US markets and banking?
The likely end result of this is that it will shrink the market to which American companies have access by more than it will shrink the market for anyone else.
I am not assuming anything. Military force is not the same thing as economic sanctions. Are you suggesting the US would be willing to use military force to stop the UK or France using technology developed in their own countries? Or from using Chinese LLMs? Otherwise this is irrelevant.
Every non-American company is now at a disadvantage against American companies. The implications can not be overstated.