#251 - Mythos Back, Sonnet 5, Etched, LongCat

Our 251st episode with a summary and discussion of last week's big AI news!Recorded on 07/01/2026Hosted by Andrey Kurenkov and Jeremie HarrisFeel free to email us your questions and feedback at andreyvkurenkov@gmail.com and/or&nbsp;hello@gladstone.aiRead out our text newsletter and comment on the podcast at https://lastweekin.ai/In this episode:Anthropic redeploys Claude Fable 5 after talks with the US government, adding new cybersecurity classifiers, drafting a jailbreak-severity framework with major partners, and expanding model-testing coordination; broader concerns remain about the inevitability of jailbreaks and uneven release constraints versus OpenAI.Anthropic launches Claude Sonnet 5 with time-limited discounted pricing, improved agentic coding and benchmark performance, reduced misaligned behavior, and default cyber safeguards despite relatively weaker cybersecurity capability than top-tier models.New tools and apps include Google NotebookLM generating TikTok-style vertical video summaries of uploaded research and Google releasing Nano Banana 2 Lite, a faster, cheaper image generator available via API.Business and research updates span Etched’s push toward full-stack inference hardware with major funding and contracts, Baidu’s AI chip unit IPO ambitions, Agility Robotics’ SPAC plan, DeepSeek’s hiring expansion, and China’s open-source Longcat 2.0 MoE model with notable large-scale training and efficiency techniques alongside new long-horizon agent benchmarks.Timestamps (note - these don't take into account dynamically inserted ads and therefore may be off by a couple of minutes):(00:00:10) Intro / Banter(00:02:07) News PreviewTools &amp; Apps(00:02:32) Trump drops restrictions on Anthropic's Mythos and Fable models | TechCrunch(00:16:08) Anthropic launches Claude Sonnet 5 as a cheaper way to run agents | TechCrunch(00:20:35) Google’s NotebookLM can sum up your research in a TikTok-style clip | The Verge(00:22:08) Google introduces a faster, cheaper image generator with Nano Banana 2 Lite | TechCrunchApplications &amp; Business(00:22:50) Etched Pulls 400+ Engineers From NVIDIA, TSMC &amp; More to Build a New Frontier Inference Cluster For AI Which Is Already Worth $1B in Demand(00:31:17) Baidu Rallies on AI Chip IPO Report(00:33:54) Agility Robotics plans to go public via SPAC in a $2.5B deal | TechCrunch(00:37:06) China's DeepSeek plans to at least double staff in all departments | ReutersProjects &amp; Open Source(00:40:44) Introducing LongCat-2.0(00:57:42) OSWorld2.0: Benchmarking Computer Use Agents on Long-Horizon Real-World Tasks(01:01:33) TUA-Bench: A Benchmark for General-Purpose Terminal-Use Agents(01:04:29) SWE-Together: Evaluating Coding Agents in Interactive User Sessions<