Microsoft limits employee use of Anthropic's Claude Fable 5

Microsoft is limiting employees' use of ⁠Anthropic's ⁠Claude Fable 5 because of the AI startup's new data retention requirements, The Verge reported, citing sources.

Anthropic this week said ‌it is rolling out Claude Fable ‌5, ‌a public version of its ‌Mythos AI model, with guardrails ⁠barring its use in risky areas such as cybersecurity.

Claude Fable 5 is the most powerful model Anthropic has made available for wider use, ​with the company citing its performance in software engineering and analytics.

Microsoft has told ⁠employees that its legal teams are evaluating changes to Anthropic's data retention requirements, according to the report.

The concerns centre on customer data and confidential information, and it is not yet clear whether Microsoft's legal teams will clear Claude Fable 5 for internal use, the report said.

Under Anthropic's ​data retention policy for Mythos-class ⁠models, prompts submitted and outputs ⁠generated are retained for 30 days for trust and safety purposes ​on every platform where the models are offered.

Anthropic ‌retains inputs ⁠and outputs for up to two years if they are flagged by its trust and safety classifiers as violating ‌its usage policy.

Microsoft and Anthropic did not immediately respond to Reuters requests for comment.

Anthropic last week said it had confidentially filed for a ​US initial public offering but did not disclose the size or terms of the offering.

It last raised US$65 billion ($93 billion) at a ‌post-money valuation ⁠of US$965 billion in late ​May, putting it ahead of rival OpenAI.