Carlo CocuzziAI Expert, Pod Cast Host, Real Estate Investor and Funding Specialist

The Government Has Blocked AI | MOONSHOTS

9 Jul 2026 · 1 min

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In this commentary, the speaker notes that the U.S. government has, for the first time, used a 2018 export‑control law to block the AI system Fable 5 from being accessed by foreign nationals, even those on U.S. soil. The law grants the White House unilateral authority to restrict AI exports, a power the speaker characterizes as extraordinary. While the restriction technically applies to foreign nationals, the speaker points out its unenforceability unless the system is shut down entirely. The segment ends with a broader question about who ultimately controls AI—government or corporations—suggesting that governmental control may become the norm.

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Widely reported that the first time the government has blocked AI, but it's not the last time. In fact, this is going to be the norm going forward. It's really interesting that they used export control law, which was only passed in 2018, to give the White House unilateral authority to block exports. And that's an incredible power to give to the White House. The White House then is using it to stop Fable 5, but they didn't actually block US citizens from using Fable 5. They said no foreign national, including somebody on US soil. Of course, that's unenforceable unless you just turn it off completely. But that was the mechanism for saying, look, at the end of the day, who owns AI? Is it the government or is it the corporations? The government is saying, we do.