Asian AI Startups Rise as Anthropic’s Export Ban Shakes the Market
On Wednesday, Chinese cybersecurity firm 360 reportedly unveiled Tulongfeng, a groundbreaking AI tool positioned to compete directly with Anthropic’s Mythos, a cybersecurity-focused AI model that has recently attracted significant regulatory attention. Notably, the Trump Administration has banned Mythos and its more restricted variant, Fable 5, from being accessed by non-Americans, citing national security concerns. This move has reverberated across the global AI landscape, prompting alternative players to step into the spotlight.
Earlier in the same week, Tokyo-based AI startup Sakana AI launched Fugu, an AI model named after the Japanese word for blowfish. The company claims that Fugu “stands shoulder-to-shoulder with leading models like Anthropic’s Fable 5 and Mythos Preview.” Designed specifically for agent-based applications, Fugu can orchestrate access to other AI models through their APIs, positioning it as a versatile tool for complex AI workflows.
Context of the U.S. Export Ban and Its Impact
The U.S. government’s export ban on Anthropic’s Mythos and Fable models came into effect just two weeks ago, restricting global access and creating a vacuum in the AI market. This export control order has significant implications, particularly for Asian businesses and government agencies that rely heavily on cutting-edge AI technologies but now face increasing limitations.
A spokesperson at Sakana AI told TechCrunch that the release of Fugu was “entirely coincidental” with the ban, though the timing has certainly amplified its visibility. Sakana’s website highlights the advantage of delivering “frontier capability without the risk of export controls,” appealing directly to customers wary of geopolitical uncertainties.
“Sakana Fugu is something we have been building since last year — the research behind it was presented at ICLR this spring, and it reflects an approach that is central to how we deliver frontier-level value at Sakana AI. We were confident in the product on its own merits; the timing simply happened to coincide with a moment that brought it more attention than we expected,” the spokesperson explained.
Sakana AI: Bridging Language, Culture, and Export Concerns
Co-founded in 2023 by Google alumni David Ha and Llion Jones, alongside Ren Ito, a former executive at Mercari and Stability AI, Sakana AI focuses on creating affordable generative AI models optimized for the Japanese language and cultural context. This specialization addresses a significant market gap, as many global AI models predominantly cater to English-speaking users and Western contexts.
While targeting Japanese enterprises and government clients seeking to mitigate exposure to tightening export controls, Sakana AI does not foresee a permanent shift away from U.S.-based AI models in Asia. A company spokesperson emphasized, “U.S. models remain important to Asia,” echoing co-founder Ren Ito’s remarks at the recent G7 summit in Evian, where AI access and export controls were key discussion points.
In a recent op-ed published by Project Syndicate, Ren Ito urged the U.S. federal government to prioritize preserving AI access for America’s closest allies. He argued that “AI should not become a technology that is hoarded; it should be one that is developed together,” highlighting the importance of international collaboration over isolationism in AI development.
Fugu’s Architectural Vision: Orchestration Models as the Future
David Ha, Sakana’s co-founder and CEO, has described Fugu as more than a strategic response to a vulnerable market moment. He envisions it as part of a broader shift towards “Orchestration Models,” which transcend the traditional focus on increasing model size. These models coordinate multiple AI agents and APIs, creating a more resilient and flexible AI infrastructure.
In a post on X, Ha underscored the risks of over-reliance on a single AI provider, particularly in light of sudden export restrictions. “Access to top models can disappear overnight,” he wrote. “Collective intelligence is the practical hedge against this concentration of power.” This approach not only diversifies risk but also harnesses the strengths of multiple AI systems working in concert.
China’s 360 Steps Up with AI Security Tools
Meanwhile, China’s 360 firm has taken a more assertive stance. The company reportedly launched two AI-driven cybersecurity tools: Tulongfeng, which automates the discovery of software vulnerabilities, and Yitianzhen, designed to automate cyber defense and incident response. According to Reuters, 360’s founder Zhou Hongyi described vulnerability-finding AI as a “national strategic asset,” warning against “one-way transparency” where only select actors have access to advanced capabilities.
This launch signals China’s intent to develop indigenous AI security technologies that can rival those from U.S.-based companies like Anthropic. The move reflects broader geopolitical trends in technology sovereignty and control over critical AI tools.
The Shifting Landscape of AI Access in Asia
Anthropic, prior to the export restrictions, was on an impressive growth trajectory, reporting run-rate revenues exceeding $47 billion as of May 2026. While the exact proportion of revenue from Asian enterprise customers remains undisclosed, it is clear the region represents a significant market.
Since the U.S. export ban took effect, companies in Tokyo and Beijing have swiftly filled the void left by Anthropic. Local alternatives like Sakana’s Fugu and 360’s Tulongfeng offer tailored solutions better suited to local languages, regulations, and cultural nuances. Even if U.S. companies eventually regain unrestricted access, these local models have already established footholds that may endure.
Requests for comment from 360 were not returned at the time of publication.
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