Reneging last minute for SA

Not sure if this is considered “last minute” but I’m debating between two firms right now. Accepted an offer for one firm in December, but moving through the interview process for another very large shop which I would much rather prefer. I have zero connections to the current firm I’ve accepted, as no one from my university has worked there before. Should I just bite the bullet and inform them I won’t be able to make it for the summer, or how would you approach it?

The firm I’m in the process with would be a firm I would love to stay at long-term, and the one I’ve currently accepted would be a temporary shop solely for the summer with no desire to go back.

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