Why are OpenAI and Anthropic cheering on regulation in Australia? The answer has global reach
News Source
β’Wed, 22 Jul 2026 15:00:19 GMT
π° What Happened
Top US AI companies OpenAI and Anthropic have cheered Australia's plans to set new AI rules. This seems strange because big tech usually fights against regulation. But there is a bigger reason behind their support. Both companies lost billions in predicted value this week after a Chinese startup called Moonshot AI launched a competitive model, Kimi K3.
Moonshot's Kimi K3 is open-source, meaning anyone can modify it. Analysts say it matches the quality of Claude and ChatGPT. Moonshot had to pause new subscriptions because demand was so high. Anthropic's implied value dropped by $232 billion, and OpenAI lost $160 billion in just a few days.
π The Backstory
OpenAI and Anthropic have not yet listed on the stock market, but investors still trade their shares on platforms like IG. Both companies have been pushing for AI regulation for years. They argue that rules will keep AI safe and prevent harmful uses. Critics say the real reason is that regulation creates barriers for new competitors.
Australia is a relatively small market, but the companies see it as a test case. If they can shape rules in Australia, they might influence regulation in bigger markets like the EU and US. This strategy is similar to what SpaceX did before its public listing. SpaceX raised $86 billion and reached a $2.1 trillion valuation after going public in June.
π― Why It Matters
AI regulation in Australia could set a global example. It affects how AI tools are built, who can compete, and what rules apply to the technology you use every day.
Top US AI companies OpenAI and Anthropic have cheered Australia's plans to set new AI rules. This seems strange because big tech usually fights against regulation. But there is a bigger reason behind their support. Both companies lost billions in predicted value this week after a Chinese startup called Moonshot AI launched a competitive model, Kimi K3.
Moonshot's Kimi K3 is open-source, meaning anyone can modify it. Analysts say it matches the quality of Claude and ChatGPT. Moonshot had to pause new subscriptions because demand was so high. Anthropic's implied value dropped by $232 billion, and OpenAI lost $160 billion in just a few days.
OpenAI and Anthropic have not yet listed on the stock market, but investors still trade their shares on platforms like IG. Both companies have been pushing for AI regulation for years. They argue that rules will keep AI safe and prevent harmful uses. Critics say the real reason is that regulation creates barriers for new competitors.
Australia is a relatively small market, but the companies see it as a test case. If they can shape rules in Australia, they might influence regulation in bigger markets like the EU and US. This strategy is similar to what SpaceX did before its public listing. SpaceX raised $86 billion and reached a $2.1 trillion valuation after going public in June.
AI regulation in Australia could set a global example. It affects how AI tools are built, who can compete, and what rules apply to the technology you use every day.