Sonnet 5 Is Here, Fable and Mythos Are Coming Back, Google’s Cheapest Video Model Yet
Today we’re covering the biggest AI stories of July 1st, 2026. Anthropic launched Sonnet 5 — its most agentic mid-tier model yet, with reasoning and knowledge work that surpasses even Opus 4.8 — but the real headline is that the U.S. Department of Commerce officially lifted export controls on Fable 5 and Mythos 5, with both models set to come back online tomorrow after 18 days offline, ending one of the most disruptive government interventions in AI history. Google dropped two new media models for developers — Nano Banana 2 Lite generating images in four seconds at three cents each for bulk…
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