Vals AI has claimed that fable 5.1 helped solve a three centuries old cipher that no one else could figure out.

Here’s the X thread that sums everything up:

https://x.com/ValsAI/status/2094851406931095593

For those who don’t like X or want something more in-depth, here is their blog:

https://www.vals.ai/blogs/fable-solves-cyphral-distich

Been generally tracking sentiment on the topic of the Singularity and AI progress for a very long time - on Reddit, in real life, wherever.

A year ago, while people talking about AI progress were starting to be taken seriously, the Singularity still was pretty niche and on places like Reddit people would still not respect any position that tried to argue it seriously, and bubble popping and walls were still primarily how people discussed AI.

That's been shifting particularly rapidly in the last 8 months, and I think in the last month or so, it suddenly started feeling very different.

In public, I hear people openly talking about AI _everywhere_. Not just how they don't like data centers... I hear regular people talking about using agents and freaking out. I've heard that kinda thing at the dog park multiple times over the last few weeks - I try not to even talk about it in places like that to keep some AI free islands... But there really aren't any of those anymore. I hear it at the bar when I go out dancing! It feels like people are really grappling with feeling capabilities rise... Maybe because more and more people are experiencing multiple generations of models now?

It's not just that people are using advanced models now and are talking about AI capabilities, it's that they are taking seriously the idea that we will have robotics soon. I don't even have to bring it up anymore as a potential future consideration, it's on people's minds already. Jobs, automation, even what it means to be a human being in the future we are building are all regular parts of the conversion, either implicitly or explicitly predicated on concepts like RSI!

I am... Happy? Confused? Pleasantly surprised?

There are still people who are in denial, very normal, or people who are still out of the loop or just can't understand... But even on other subs here on Reddit that are notorious for not taking AI progress seriously... Well if someone says that AI code is terrible or useless or whatever, it's now just a crowd of people who are _not me_ arguing with that person. Often people say something to the effect of "Look dude, I believed this too until a little while ago but I was in denial, I have to use these tools every day and I can't lie to myself about how capable they are anymore and I'm freaking out".

Anyway... This is good but jarring! Has anyone else noticed?

https://alignment.anthropic.com/2026/reward-seeker/

I just had Claude calculate the fraction of cache read costs for the past two months using ccusage and it amounts to 78% for Fable 5. If cache reads get 75% cheaper then overall costs should decrease by ~57%. I’m excited to see if the math holds up.

The new Atlas model from World Labs is a massive step toward spatial intelligence and giving AI a true understanding of physics and 3D geometry. It’s a multimodal autoregressive diffusion transformer that doesn't just generate 2D pixels, but grounds everything in a shared "spatial context."

The space-time simulation and Real-to-Sim capabilities are the most mind-bending parts of this release:

• The "Holodeck" from a Cell Phone: With footage from just three to five standard cell phones, Atlas builds a complete, navigable space-time simulation. It freezes time and lets you reframe 3D shots from impossible angles without a multi-million-dollar volumetric capture studio.
• Real-to-Sim for Embodied AGI: It doesn't just scan a static room. As a simulated robot moves through a reconstructed space, Atlas actively generates the exact RGB and depth sensor data the robot would see along its specific trajectory.
• Physics and Interaction: It captures how objects actually move and interact in the real world. You can take a casual recording and simulate rigid, articulated, and deformable objects, instantly tweaking the lighting and background to generate infinite training environments.
• Explicit 3D Geometry: Instead of just hallucinating flat video frames, it natively outputs full 3D point clouds and Gaussian splats that can be rendered and explored in real-time.

The US will push something called the Carolina Principles, a policy where governments commit to avoid creating new regulatory bodies to regulate AI.

The Carolina Principles is backed by the Trump admin and tech figures like Musk and Altman and this framework explicitly discourages creating new regulatory bodies. 

Hassabis in July called for the United States to create an organization that would test the most powerful AI systems before they can be released to the public. He has previously advocated for stronger, centralized oversight, proposing a specialized US regulatory body to pre-test powerful AI models, which contrasts with the self-regulatory framework being proposed by the event hosts.

https://www.france24.com/en/live-news/20260901-us-to-press-g20-on-light-touch-ai-regulationc

Released by Felix Rieseberg of Anthropic on X/Twitter. Generally, it appears an incremental shift forward. OpenAI's Astra might very well leap this in short order.

Though it is proprietary and not very transparent about LLMs details.