alt Hacker NewsI don't think this is what happened. Anthropic could have absolutely complied with the government order, even in the most minimal fashion possible. Instead they chose to block everybody, and then give a link blaming the government.
I think it's most likely that they felt that this would drive wide antagonism towards the government which would help put them in a more favorable situation for future negotiations to establish a more 'commercially favorable regulation regime.' In other words, build me a moat, now! The government responded by super-screwing them, but is doing so in a way that can help keep the corporate class relatively content while this plays out.
"Our models are so good they are banned by the government"
I don't see any way how releasing an incrementally better model could get even close to the positive PR. For every Mythos token not sold because of this they'll sell dozens of Fable, Opus and so on. Perhaps the ban did not origin at Anthropic, as a PR stunt, but genuinely at some government desk. Entirely possible. But Anthropic would be foolish to not pick up that ball and drag it out a little.