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Microsoft limits employee use of Anthropic's Claude Fable 5 over data retention concerns, The Verge reports

Microsoft is reviewing whether to approve the model for broader internal use as Anthropic’s new retention rules require prompts and outputs to be stored for 30 days.

  • Microsoft is restricting employee access to Anthropic's Claude Fable due to data retention requirements, The Verge reported on Wednesday. The company's legal teams are currently evaluating the model's compliance with internal data policies.
  • Anthropic mandates that prompts and outputs for its new Mythos-class models be retained for 30 days for trust and safety purposes. If flagged for usage policy violations, the startup may store this data for up to two years.
  • Lawyer Jessica Eaves Mathews explained that this policy overrides existing Zero Data Retention agreements. Unlike other Claude models, Claude Fable lacks ZDR options, forcing a 'mandatory exception' for enterprise and API customers.
  • Internal versions of GitHub Copilot currently exclude the model as Microsoft legal teams assess whether to approve it for broader use. Employees report the tool remains unavailable in the model picker.
  • Researchers including Ellie Bakkouch criticized 'invisible safeguards' in Mythos models that intentionally limit performance on 'frontier llm research' tasks. These hidden interventions have sparked broader controversy regarding model transparency and developer control.
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Microsoft has made the decision to restrict its workers to the use of Claude Fable 5, the first...

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Reuters broke the news in New York, United States on Wednesday, June 10, 2026.
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