US AI ban on Anthropic models may boost China, hurt Hong Kong finance

Hong Kong's financial sector faces a potential setback as US AI firm Anthropic restricts access to its advanced models, including for foreign employees. This decision stems from a strict interpretation of US export controls aimed at limiting China's access to cutting-edge AI technology.

Goldman Sachs and JPMorgan Chase recently halted their use of Anthropic's AI, reflecting Washington's stringent policies. A US Commerce Department directive issued this month mandates that all foreigners be denied access to Anthropic's most advanced Fable 5 and Mythos 5 models. The directive reportedly gave Anthropic only 90 minutes to comply, citing national security concerns.

The Financial Times warned that barring access to these leading AI models threatens Hong Kong's ambition to revive as an international financial center, especially as these tools are rapidly adopted globally for tasks like coding. Ironically, China's AI industry might benefit. If international users cannot access the most advanced American AI, they may turn to "good enough" Chinese alternatives, which are often cheaper. This shift could inadvertently strengthen China's position in the global AI race.

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Preventing access to the world’s most advanced AI models represents a threat to Hong Kong’s revival as an international financial centre, given their rapid adoption in other parts of the world, particularly for coding.