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Key AI News Impacting Enterprise Strategy: Anthropic, OpenAI, Apple, and More
AI advances reached a new intensity this week, with government intervention, trillion-dollar IPOs, and new models prompting direct action from leading global enterprises. This update extracts data-backed insights from industry developments, focusing on concrete, actionable takeaways for decision-makers seeking to assess emerging AI risks and opportunities.
Anthropic Fable 5 Shutdown: National Security Risks and Enterprise Impacts
The conversation focused on the abrupt US government shutdown of Anthropic's Fable Five and Mythos Five AI models, which underscores heightened scrutiny around AI deployment at scale. Within days of its public launch, Fable Five was disabled for all customers worldwide via export controls, following urgent requests by US officials over national security risk 03:01. The cited concern stemmed from feedback by Amazon’s CEO regarding Fable and Mythos models’ potential to bypass safety guardrails 03:22.
A key theme that emerged was the operational consequence for enterprises integrating third-party AI: the administration required data access suspension for all foreign nationals—including within Anthropic—demonstrating how quickly regulatory action can abruptly cut model availability for critical applications 05:01. Anthropic’s criticism of the order as “disproportionate” and the lack of technical transparency points to an unpredictable regulatory landscape. The resulting disruption comes just as Anthropic prepares for its IPO, impacting investor confidence and internal morale 07:10.
Business implication: Immediate AI model suspension by regulators can strand production systems, making continuity planning for multi-vendor AI dependencies an urgent strategic priority.
Apple Intelligence and Siri AI: Privacy-First Features and Cross-App Productivity
Apple’s WWDC announcements presented Apple Intelligence as a deeply integrated privacy-focused generative AI platform across Siri, iOS, iPadOS, and macOS 08:07. One concept discussed was Apple’s ongoing delay, with flagship AI features scheduled for beta release in fall and staged across platforms 09:06. Of particular note: advanced cross-app context awareness, AI-powered call and message management, and the natural language Shortcuts automation—all optimized for personal data privacy claims 09:39.
Specific business value can be pulled from Apple’s novel “reframe” feature, enabling AI-driven image manipulation from alternate perspectives, promising productivity gains for content creation workflows 10:15. However, the highlight is the new Siri AI app, which will allow conversations to sync seamlessly across devices and the cloud—subject to Apple’s privacy frameworks 12:05.
Business implication: As Apple deploys AI across core communications workflows, organizations invested in the Apple ecosystem should evaluate opportunities for secure, on-device automation balanced against feature rollout delays and ongoing suit settlements (e.g., the $250M Apple Intelligence class action) 12:32.
The End of Prompt-Based AI Chat and Rise of the AI Super App
A notable development involved OpenAI’s reported strategic pivot—according to a Financial Times source, “chat is dead,” with OpenAI transitioning ChatGPT from a prompt-based experience to an advanced “super app” offering agents, coding tools, and productivity utilities 14:29. This signals a fundamental shift for enterprise adoption: reliance on stand-alone chatbots is transitioning toward platform-based, multi-modal agent environments 16:02.
Several points were raised, including OpenAI’s planned enterprise pay schemes with per-token pricing, mirroring Anthropic’s move to target business workloads 14:57. As a consequence, enterprises must reassess their AI adoption roadmaps, focusing on integration and workflow automation over conversational UI investment.
Business implication: Strategic planning should prioritize transition paths toward agent-based AI ecosystems, considering user retraining, integration costs, and the evolving pricing structures that may drive operational costs both down (through competition) and up (through usage-based models).
OpenAI and Anthropic IPO Activity: Funding, Pricing Wars, and Token Efficiency
The discussion explored IPO momentum, noting that both OpenAI and Anthropic have confidentially filed for public listing, with OpenAI’s valuation reportedly approaching $1 trillion 17:26. This activity is coupled with OpenAI’s signals to engage in AI pricing wars, seeking to drive down token costs in response to rising enterprise billing concerns and competition from Anthropic’s latest models 18:44.
A critical detail: Enterprises are being prompted to shift from “token maxing” (maximizing output regardless of efficiency) to “token efficiency” (optimizing cost/output), as models become more powerful but also more expensive to operate 19:08.
Business implication: AI model cost structuring can change rapidly; contract negotiations should anticipate future pricing reductions and emphasize token efficiency for long-term usage at scale.
Prometheus Funding and the Artificial General Engineer Model
Prometheus, an AI startup co-led by Jeff Bezos, announced a $12 billion funding round at a $40 billion valuation, focusing on building an "artificial general engineer"—a platform designed for rapid design-to-production of physical objects like bridges and microchips 20:12. Its capital-intensive strategy reportedly includes fundraising up to $100 billion for an affiliated manufacturing acquisition fund 22:05.
Business implication: For manufacturers and engineering enterprises, Prometheus introduces the possibility of AI-led end-to-end automation for traditionally long-cycle processes, potentially unlocking substantial speed and cost efficiencies.
Intensified AI Regulation and Data Retention—Anthropic’s Fallout
A significant segment explored the regulatory landscape and customer backlash surrounding Anthropic’s new Fable Five. Unlike any previous major model, Fable Five mandates storage of all prompts and completions for 30 days, with flagged conversations stored for up to two years and safety scores for seven 28:18. The model’s aggressive safety controls and rollback mechanisms resulted in key enterprise customers—most notably Microsoft—banning internal Fable Five use due to proprietary code exposure risk and violation of strict compliance standards 29:18.
This is the first large-scale example of an AI provider imposing non-negotiable data retention, triggering market resistance, especially from companies bound by strict internal or regulatory privacy rules (HIPAA, zero-retention agreements, etc.) 29:42.
Business implication: Any enterprise subject to compliance regimes or internal policies must conduct due diligence on vendor data retention policies, as sudden changes can unilaterally expose proprietary data or create regulatory vulnerabilities.
Google AI Overviews Legal Ruling: Precedent for Publisher Liability
The episode reported on Google’s appeal of a landmark German court ruling, holding the company liable for AI Overviews that generated and displayed false or defamatory content about publishers 22:36. This case foreshadows potential global impacts on liability standards for AI-generated content in enterprise platforms, especially as search and aggregation tools shift toward generative models 23:01.
Business implication: Content publishers, aggregators, and search platforms should re-examine risk exposure, considering proactive monitoring and redress mechanisms for AI-generated outputs, given risks of defamation and regulatory scrutiny.
SpaceX: IPO, AI Compute, and AI Market Dynamics
The discussion closed with SpaceX’s public market debut, bringing the company to a $220 billion market value 40:16. More than a rocket launch provider, SpaceX now encompasses AI ventures such as Grok and xAI, and positions itself as a compute infrastructure provider through its Colossus data centers and plans for compute-in-space 42:01.
Business implication: For enterprises with intensive AI compute needs, emerging vendors outside the traditional hyperscalers—such as SpaceX—offer new options for addressing global infrastructure shortages and gaining access to advanced chip and compute resources.
Conclusion:
This week’s AI news demonstrates a rapid shift from stable model integration toward a dynamic environment where regulatory action, IPO capital, pricing tactics, and platform architectures can change supply, cost, and compliance risk with little warning. Enterprises must build flexibility into AI adoption strategies, closely monitoring vendor roadmaps, data policies, and regulatory developments to prevent unexpected disruption or missed opportunity.
Topics Covered in This Episode:
- Anthropic Fable 5 Shutdown by U.S. Government
- Apple WWDC AI Announcements and Siri Gemini Integration
- OpenAI ChatGPT Super App Transformation News
- OpenAI IPO Filing and Pricing War Plans
- Prometheus AI Funding and Artificial General Engineer Initiative
- Google AI Overviews German Court Ruling Impact
- Anthropic Fable Five Data Retention Controversy
- Microsoft Internal Ban on Anthropic Fable Five
- SpaceX IPO Launch and xAI/Grok Integration
- Major AI Industry Funding, Partnerships, and Regulatory Moves
Episode Transcript
Jordan Wilson [00:00:16]:
This week was a wild one in AI news. I mean, we have the world's first trillionaire, thanks to AI. We also have the world's most powerful model, but one tech titan refuses to use it because of their data. And we have another big AI company that's not only going public, but they're reportedly going to start an AI pricing war to make AI cheaper. All the biggest names in AI made some big moves this week. And if you took your eyes off the road for more than a few minutes, you probably missed some pretty impactful news that will move the needle for your company or your career. But I get it. You can't spend every hour of every day trying to keep up.
Jordan Wilson [00:01:04]:
That's what I do for you, and that's what we do here with our Monday show called the AI news that matters. So if you're new here, welcome to Everyday AI. My name is Jordan Wilson, and we do this thing every day, and it's for you. This is your daily livestream podcast and free daily newsletter, helping everyday business leaders like you and me not just keep up with everything that's happening, but I help you separate the real from the fake, the fluff from the meaningful. I tell you what matters. You use that information to grow your company and your career. So if you haven't already, please make sure to subscribe to the podcast if you are listening on the podcast side, and then make sure you go to our website at youreverydayai.com. Sign Sign up for the free daily newsletter.
Jordan Wilson [00:01:43]:
We're gonna be recapping not only the big AI news stories we're going over today, but everything else that's happening in the AI world that's going to impact you. So without any further ado, because we have a lot to get into. And one other, you you know, FYI. So normally, I love doing this show live on Monday mornings. I am having to record this one a little bit early just because I'm doing some traveling. So if maybe if there's some big news that broke late over the weekend, might not have it in this episode, but make sure you do check out our newsletter for that. Alright. So we're actually gonna start with a breaking update in the anthropic versus White House fable development.
Jordan Wilson [00:02:25]:
Like I said, I'm traveling this week, and we actually didn't get the story in the livestream version of today's show. So this is kind of a podcast exclusive that we'll kick off the show with. So the White House's urgent action to halt Anthropic's latest AI model highlights the growing concerns about national security and the rapid pace of AI development. So the Trump administration imposed sweeping export controls on Anthropic's new AI model, Fable five, just days after its public release, citing national security risks according to Politico. So senior officials, including treasury secretary Scott Besant and White House cyber director Sean Cairncross held multiple tense calls with Anthropic CEO Dario Amati according to reports, urging the company to voluntarily remove the new Fable five model that they had just released. Well, why? Well, according to reports, that's because Amazon CEO Andy Jassy, whose company is obviously a big investor in anthropic, raised concerns to the White House about the new Fable five and Mythos, built model's ability to bypass safety guardrails after being asked for feedback. So the administration felt Anthropic was not taking the security threat seriously enough, and officials were frustrated by Amodie's reluctance to immediately pull the model. Anthropic argued its safeguards were strong enough and that no universal jailbreak had been found, but the government officials remain unconvinced, eventually setting a ninety minute deadline for removal.
Jordan Wilson [00:04:06]:
Again, this is all according to reports. So the export controls abruptly disabled Fable five and Mythos five for all customers worldwide, banning their use also by foreign nationals enforcing Anthropic to comply. Anthropic criticized the government's action as disproportionate and called for a more transparent and technically grounded regulatory process. So the White House's intervention follows months of debate about how to regulate advanced AI models with previous productive meetings between Modi and senior White House officials leading to an executive order on voluntary model submission. Anthropic issued a statement on Friday, but has not yet publicly responded to the new accusations that came out over the weekend, at least as of this recording, now Sunday afternoon. So here's what Anthropic said Friday afternoon. So they said the US government, citing national security author authorities, has issued an exports control directive to suspend all access to Fable five and Mythos five by any foreign national, whether inside or outside of The United States, including foreign national anthropic employees. The net effect of this order is we must abruptly disable Fable five and Mythos five for all of our customers to ensure compliance.
Jordan Wilson [00:05:29]:
Access to all other anthropic models will not be affected. We received this directive from the government today, this is Friday, at 05:21PM eastern. The letter did not provide specific details of its national security concern. Our understanding is that the government believes it has become aware of a method of bypassing or jailbreaking fable five. We reviewed a demonstration of this specific technique being used to identify a small number of previously known minor vulnerabilities. These vulnerabilities all appear relatively simple, and we have found that other publicly available models are able to discover them as well without requiring a bypass. So there will surely be an update to this story on Monday, and we'll be sure to include this in our newsletter so you can make the right decisions for your company. So this obviously has both anthropic insiders and connected investors kind of shook.
Jordan Wilson [00:06:30]:
Right? So previously, between the Department of Defense's, decision to label anthropic a supply chain risk and to prohibit, the Department of Defense in certain branches of the federal government from using any anthropic models. So this kind of back and forth between anthropic and the US government has been going on for a while now, but this is pretty bad timing for Anthropic. So there was obviously a lot of good and bad reaction to their new Fable five and Mythos five release, and we will be covering that in a later, kind of segment here on this very show here in a couple of minutes. So there's a lot of good hype and bad hype behind it, but this is obviously a pretty bad look for Anthropic. We'll see who was ultimately in the wrong. We haven't had, kind of the ability to hear properly from anthropic after they've gone back and forth with the government on this. So I'm sure we'll hear more on their side of the story. So we'll give them the proper time before we dig into this too much.
Jordan Wilson [00:07:33]:
But regardless, you know, the kind of rollout of Fable five and Mythos five was kind of supposed to be this last big positive splash before Anthropic ultimately decided to go public as they, did, kind of file their s one paperwork about two weeks ago now. So, pretty big move. And like I said, we'll have more on this in the newsletter, as it is a developing story, but let's get to the rest of our AI news. My gosh. What are we can AI when Apple's big AI announcements didn't even make our little teaser, intro. But Apple's WWDC showcase a series of big AI advancements, aim at closing the gap between Apple and their competitors. So, man, like, in AI time, this like, I know this happened Tuesday. Seems like it happened a month ago, but we gotta talk about it.
Jordan Wilson [00:08:26]:
Apple introduced a major update to Siri powered by Gemini AI under the hood. Right? So they're making their new AI assistant more capable, conversational, and visually intelligent, now available as both a stand alone app as well as integrated across Apple's ecosystem. So it's not out yet. Right? So, as is most of the case with Apple's AI announcements over the past few years, it's in beta now coming fall. So we'll see when the new smarter Siri and all of these Apple intelligence features roll out both to the iPhone and the Mac OS and iPad, I guess. But regardless, a lot to take in here. So the company has obviously emphasized and continued to, preach this at WWDC. Their privacy first approach to AI stating that data used for AI request will not be stored and can be externally verified for privacy compliance.
Jordan Wilson [00:09:25]:
So Apple Intelligence is the company's integrated AI system, and it's being expanded with some new features like cross app context awareness, one tap password updating, and smarter tap management in Safari. Messages and phone apps are getting AI powered reply suggestions and the ability to pull contacts from other apps during calls. That's one I'm looking forward to, streamlining communication for all users. So AI driven improvements are coming to search across iOS, iPadOS, and macOS, promising faster and more accurate results in spotlight mail and photos. So the photos app debuts some new generative AI features, including reframe, which I personally thought was the only real novel use of AI that I personally saw out of Apple's WWDC announcement. That's essentially where you can kind of retake a photo that you already took from a different angle, a different vantage point. That seems pretty cool. They're also rolling out some extend features cleanup, nothing that we haven't seen in a dozen or so other, you know, kind of, apps before.
Jordan Wilson [00:10:29]:
But the shortcuts app, that's what I might actually use. It will now let users create automations using natural language prompts, making the tool more accessible for those without technical backgrounds. AI moves too fast to follow, but you're expected to keep up. Otherwise, your career or company might lag behind while AI native competitors leap ahead. But you don't have ten hours a day to understand it all. That's what I do for you. But after 700 plus episodes of Everyday AI, the most common questions I get is, where do I start? That's why we created the Start Here series, an ongoing podcast series of more than a dozen episodes you can listen to in order. It covers the AI basics for beginners and sharpens the skills of AI champions pushing their companies forward.
Jordan Wilson [00:11:22]:
In the ongoing series, we explain complex trends in simple language that you can turn into action. There's three ways to jump in. Number one, go scroll back to the first one in episode six ninety one. Number two, tap the link in your show notes at any time for the start here series, or you can just go to starthereseries.com, which also gives you free access to our inner circle community where you can connect with other business leaders doing the same. The Start Here series will slow down the pace of AI so you can get ahead. So, obviously, the highlight here is Apple, rolling out a dedicated Siri AI app. So not only is the company saying Siri will actually be smart this time, for real for real. But all of the conversations that you have with Siri, whether they're on your phone, on your computer, will be synced in a dedicated Siri app.
Jordan Wilson [00:12:21]:
So we'll see how all of this goes. Obviously, Apple, has gotten into a little bit of trouble for promising things, in terms of Apple intelligence in the smarter Siri. In 2024, they didn't deliver, and they had to pay a $250,000,000 lawsuit. So I did go over this in much more depth in episode seven ninety four. So make sure you go check that out if you want to, you know, hear more on any of this. But the big picture here is Apple says the new Siri AI will understand personal context across messages, emails, apps, and what is shown on screen. And then that, you know, syncs across the Siri app if you're using iCloud. So when might you get this? Well, the broader Apple intelligence updates are expected this fall, and the most important Siri AI.
Jordan Wilson [00:13:09]:
So the final thing that they demoed is likely arriving later this year. So, presumably, that would be late fall, early winter, in English first. So, yeah, not rolling out everywhere. We'll see how many times that timeline gets pushed back. There is a beta version out now. Although, even if you got on immediately like I did, you're probably still on the wait list. It seems like they're letting very few people in on the beta, but then the, kind of the rollout then after that. So some of the other Apple intelligence features coming out in the fall and then the broader Siri AI rollout later this year.
Jordan Wilson [00:13:48]:
Alright. Is chat dead? Well, maybe, and there's probably something else bigger coming, which we've been talking about for a long time. But I think this is an important news story to talk about just because of the shocking headline here that chat is dead. So OpenAI is preparing to radically transform Chattopty into a super app in the coming weeks according to a report from the Financial Times. So the company aims to shift CHBT from a simple app chat interface to a gateway for advanced agents, coding tools, and productivity apps, focusing on features that could drive more financial revenue. So a senior and here is the reason why I'm thinking this is a top AI news story here. So according to the Financial Times, a senior OpenAI staff member told the Financial Times that, quote, unquote, chat is dead, signaling the major change in direction for the company's core product. So OpenAI's new model will reportedly encourage users to rely on its apps, coding tools, and image generation features, moving away from the traditional prompt based chat experience.
Jordan Wilson [00:14:57]:
So the company is also planning to introduce inner, enterprise oriented pay schemes, including per token pricing, to attract more business clients and boost revenue as it competes with Anthropic in the race toward a public offering. So Anthropic, OpenAI's main competitor, has recently pulled ahead in some people's view by targeting enterprise customers with its clawed AI platform rather than focusing on the general public, which is what OpenAI has been doing as they did officially just hit 1,000,000,000 weekly active users. So we've known now for a couple of months that this has been, you know, Chatt GPT's priority in terms of its plan, but pretty shocking headline nonetheless to see that an OpenAI senior staff member, obviously, on background or off the record saying chat is dead, which is interesting. Right? And it makes me think how important it is to start changing your mindset. Right? So, you know, taking a pause here from the news piece of it, you know, even for myself, I'm using just the chat products way less. Right? I'm using chat g p t, online less. I'm using claw.ailess. Right? I'm moving more and more into the super app territory.
Jordan Wilson [00:16:11]:
Right? It's it's no surprise, you know, you guys all know when I'm, you know, doing these shows. I usually have codex and Claude code running right now. I actually have, codex working now for more than a day, going and testing out things in the new Claude Fable model. So, you know, let me know if, like, do you guys think we should focus a little bit more on super apps? Maybe I'll do a dedicated show on super apps going over what they are, why they matter, how to use them, what constitutes a super app. You know, just let me know. Comments as always. I always have a number y'all. So if if you are listening on Spotify, you know, say super app, yes, super app, no.
Jordan Wilson [00:16:48]:
Same thing live stream audience. Let me know. Personally, I think it's smart to start looking there. So if you are using these desktop, autonomous agents, right, codex, clawed desktop, cursor, anti gravity two point o desktop, you know, that is kind of, I think, the next wave. Alright. Let's keep it going. Speaking of OpenAI, another piece of big news, they have officially filed for their IPO. So OpenAI has confidentially submitted paperwork to go public on The US stock market, a move expected to result in one of the highest valued IPOs in history.
Jordan Wilson [00:17:26]:
So OpenAI's confidential s one filing with the SEC signals a potential IPO valuing the company at nearly $1,000,000,000,000 or maybe more. But at least as of now, we're seeing a lot of numbers in the mid 9 hundreds to $1,000,000,000,000 in terms of the company's current valuation. So the company says it has not decided on the timing of the IPO, citing ongoing internal considerations that may be easier to address as a private entity. So, yeah, we saw some reporting this week that said OpenAI may wait up to a year to go public because there are some big projects that they want to kick off that they say would be easier to do as a private company versus a public company. But, obviously, filing the paperwork now gives them the option and the flexibility to go public sooner if they so choose. So OpenAI's chief rival, Anthropic, has announced plans to go public last week, highlighting the surge of AI firms entering the public markets so far in 2026. And, yeah, we're gonna be talking about SpaceX, obviously. But it's not only that OpenAI is saying, yeah, we're gonna go public at some point.
Jordan Wilson [00:18:36]:
But at the same time, they also said, yeah, we're gonna start a pricing war, but in a good way for consumers. So, The Wall Street Journal reported that OpenAI is considering major cuts to token pricing as it prepares for tougher competition with Anthropic and as enterprise customers complain that their AI usage bills are rising too fast. Yeah. Now all of a sudden, all those companies that were going hard on token maxing, in quarter one and blew through their budgets, all of a sudden they're like, wait. We should probably be focusing on token efficiency. And weird. I told you all about this. When do we go over this? Go listen to, episode seven eighty nine, our start here series when we talked about this shift from token maxing to token efficiency.
Jordan Wilson [00:19:23]:
But this move from OpenAI signals that they're, well, acknowledging that and that they need to start, highlighting well, they're right now the most token efficient company when it comes to price. So they're looking to even maybe potentially undercut a little bit more after Infrafx recent, Fable, model release, which we will also talk about here in a second. But next big piece of AI news, Jeff Bezos saw Elon Musk become a trillionaire, and he's like, that sounds good. Let's raise more money for another one of my companies. So, Prometheus, that is the AI startup, led by co CEO Jeff Bezos in Big Baja. They announced a massive 12,000,000,000. Yes. Billion with a b.
Jordan Wilson [00:20:12]:
They announced a massive $12,000,000,000 funding round this week, valuing the company at more than $40,000,000,000 according to Axios. So Prometheus aims to revolutionize manufacturing and engineering by building what Bezos calls an artificial general engineer. So, yay, we have one more acronym. Right? So not only do we have HEI artificial general intelligence and artificial superintelligence, but now we have to keep track of an artificial general engineer because that's apparently what Prometheus is working on. They call that an AI system designed to speed up the process from design to production for physical objects, including bridges and microchips. So major investors in this round include JPMorgan, BlackRock, Goldman Sachs, DST, Global, and ARC Venture Partners. So, Bezos is the largest backer of Prometheus' early, series a round that brought in $6,200,000,000 participated again and said the company's capital intensive nature requires significant investment. So, Baja described how the AI, could tackle complex engineering projects like designing and manufacturing a jet engine, traditionally a decade long process for human teams, as an end to end AI problem instead.
Jordan Wilson [00:21:35]:
So Prometheus dropped the project from its name. So previously, it was called project Prometheus. Now it's just Prometheus, and they now have more than a 150 employees with offices in San Francisco, London, and Zurich. So when asked about an IPO yeah. Asked about an IPO already. Bezos said it's too early to think about that, but confirmed that he's, seeking to raise up to a $100,000,000,000 for an affiliated fund to buy manufacturing companies that could benefit from Prometheus' technology. So Bezos began as a founding investor in late twenty twenty four, but was so impressed that he stepped into the co CEO role, making his first, kind of big appearance since leaving Amazon as CEO in 2021. There's more y'all.
Jordan Wilson [00:22:27]:
This wasn't just about, anthropic and OpenAI and Apple and Jeff Bezos because now we have big news from Google. Little curveball here. So Google will appeal a landmark German ruling, a court ruling that found the company was legally responsible for false information generated by its AI overviews feature. So according to Reuters, this case centers on AI generated summaries that appear above traditional search results. Right? So we've seen all those, like, when they accidentally, you know, said eat glue or something like that. That's not what this lawsuit is about, but we remember all those Google AI overview snafus of the early days. Well, now, some German companies took Google to court and won the case, but Google is promising to appeal. So here's what happens.
Jordan Wilson [00:23:22]:
Two German publishers brought the case after the Google AI overviews falsely associated them with scams and questionable business practices. So Google says the vast majority of AI overviews are accurate, but admit that some summaries can miss context or misinterpret web content similar to other search features. So the ruling is expected to set the precedent that could impact other AI developers and how they deploy AI generated content in search in other online platforms. Google stated it takes quick action when AI overviews violate its policies and emphasized that this case involves specific and narrow errors, not the overall design of the feature. So the integration of AI into Google search research results has faced criticism from publishers and content providers who say it reduces their web traffic, readership, and revenue. Antitrust regulators are also investigating the impact of AI generated content in search, raising broader questions about competition and content ownership online. So this decision comes as Google opens a new AI center in Berlin, signaling continue investment in AI in the region despite the recent legal and regulatory challenges. So this one will be one that we're gonna be keeping an eye on, because as I, understand, this is the first time Google's anything when it comes to Google's AI search or they've lost any kind of lawsuit or case about anything being, false or not correct.
Jordan Wilson [00:24:57]:
So a pretty big ruling. We'll see what happens on the appeal. Alright. Yeah. Big Microsoft news is now, as well. This one technically half Anthropic, half Microsoft. So, let's start at least with Anthropic's new model. And, yeah, I'm not gonna spend too much time on this because we already did a dedicated episode on Anthropic's new Fable five and Mythos five models that were released.
Jordan Wilson [00:25:25]:
Pretty big release, so go check out episode seven ninety six. Alright. We did a dedicated episode. So we'll go too much on the actual release and the benchmarks and the use cases and where it shines. Right? We covered all that in that episode, but let's at least get the basics for those that only maybe tune in on Monday. So Anthropic has released Fable five, and it is generally available. So both in Claude AI in subscriptions only until June 22 when Anthropic said it won't be available for subscribers anymore. At that point, you will likely have to pay the API cost, which is very expensive.
Jordan Wilson [00:26:00]:
More than twice the cost of Opus four eight at $10 per million input tokens and $50 per million output tokens. So the company is calling it its most capable model to date, and the headline feature from Anthropic, is long horizon work. So Anthropic says that early testers who used Fable five for major software engineering, finance, vision, legal spreadsheet, and research tasks, said that it took months of work or engineering into days or hours. So in terms of the actual capabilities of the model, it is pretty impressive in terms of what the model can actually accomplish, especially across these specific domains. So that is the Fable model, but Anthropic also launched Claude Mythos five for a limited group of cyber defenders in the project Glasswing, group, and then they, later kind of, select biology researchers. So, essentially, here's what the Mythos fable is. So Mythos five is the kind of the big unrestricted model that's only available for a select group of people in project last week, but they did make, Fable five, which is essentially Mythos five, but with some more guardrails, but it's in the Mythos family. So that is the one that's available to right now at least subscribers, using it on the API cloud code wherever you use it.
Jordan Wilson [00:27:32]:
But like I said, four subscribers only available until June 22. But here's the big news and the update that I think it's worth paying attention to. So although Fable five got plenty of benchmark love and applause for its ability to, I mean, do some really impressive, work, you know, even replicating complex software. The model has also received the harshest backlash probably of any model ever released. So Anthropic has faced ongoing controversy due to Fable's aggressive safety controls, its once hidden model rollback, and its mandatory data retention policies according to reports from The Verge, Reuters, Forrester, and more. So here's where we get into the backlash that was really just dominated the news cycle this week. So Anthropic has essentially eliminated zero data retention agreements for Fable five because now they require all prompts and completions. So they require anything that you send, to Claude and anything that Claude produces from what you send it to be stored for thirty days.
Jordan Wilson [00:28:44]:
So, yeah, there's no more zero data retention agreements, HIPAA, all these things. Yeah. It's bad. So now, Anthropic stores that for thirty days with flagged conversations potentially held for up to two years and safety scores for up to seven years. And if something does get flagged, that means a human has the ability to read it. So why is this such a big deal? Well, you'll see now, finally, we'll get to the story I have on my screen here. So this mandatory thirty day data retention has actually led Microsoft to block internal use of Fable five, citing risks of proprietary code exposure and conflicts with its strict internal compliance standards even as Microsoft continues to sell the model to external customers. Let me talk real quick just about how big of a deal this is.
Jordan Wilson [00:29:42]:
So Microsoft is one of the biggest investors in Anthropic. Not only that, but Microsoft makes money when you use Anthropic in its Copilot. So Copilot is powered by both, OpenAI's, GPT models as well as Anthropics Claude models. So not only does Microsoft make money when people use Claude, right, via the foundry and everything else, but they are one of the biggest investors in Anthropic. So you would think if nothing else, Microsoft is pushing anthropic use out the wazoo. It it is the opposite. So apparently, according to reports, they cannot use it internally for that very reason, the thirty day data retention. And, you know, I think, actually, for me, I kind of took it easy on anthropic on the thirty day data retention, because I didn't want people to be like, oh my gosh, Jordan.
Jordan Wilson [00:30:34]:
You're so biased. And I'm like, no. I just this is the truth. So now that, you know, the one of the largest companies in the world, has done this, I can say, for me, I don't care. And I've said this on the show all the time. Right? I'm a small business owner. I don't care. Anyone can take my data.
Jordan Wilson [00:30:51]:
You can take all my inner, you know, my my my books, my my revenue, you you know, my my game plan, my internals. I don't care. Right? If I'm a company, if I'm an enterprise, I'm following Microsoft's lead right now, and I'm saying if Anthropic has this thirty day mandatory data retention, I'm not touching it. This is unprecedented, y'all. Like, this doesn't literally doesn't exist, has never existed to where if you use Fable, not only anything that you put in there is going to be retained by thirty days. But if it gets flagged, which there's not a lot of permission on what could get flagged because it seems like anything is getting flagged, and I'll get to that here in a second. But at that point, not only is your data, you know, kept by default, anything that you send for thirty days, but also, it can be if the if the conversation is flagged, it can be potentially held for up to two years. Alright.
Jordan Wilson [00:31:48]:
So not only that, but there's been a lot of other issues that have caused some of these, you know, quote, unquote false flags, for reasons. Well, Entropic has at least addressed some of them. So early users reported that Fable five's safety system aggressively downgraded or blocked benign prompts often without notification, which led to frustration, among software developers, security researchers, scientists, etcetera. So there's essentially, there were these areas where, you know, Infropic said, yeah. You can't use our models in these areas. So even when people went in with no context and just said, you know, hey, fable five. How are you? They would get blocked, right, without saying absolutely anything. Because also, depending on your settings, it carries over your past context and your past chat history.
Jordan Wilson [00:32:41]:
So even if you decide, oh, I'm not gonna share anything. I'm just gonna use it for public facing information. Right? We don't really know what's happening under the hood. But clearly, Infropic is bringing in your past content, if you have that, you know, remember chat history enabled. So dicey stuff. That's all I'm saying. You know? My and I feel better saying that now that Microsoft is reportedly saying, yeah. We're not gonna use this model because we don't want INTROPIC to have immediate and exclusive access to literally all of our data.
Jordan Wilson [00:33:10]:
So, yeah, if you don't know how that works, you know, INTROPIC's previous models, you just didn't happen. You know? All other models, it doesn't happen. If you're on a paid business plan, companies can't use your data. Right? They can't store your data unless ordered by a court. This is the first time an an AI company has ever chosen to say, yeah. If you use our model, we're gonna keep your data for thirty days. Wild. So not only that, but the model's reliance on these intensive reasoning loops means that it consumes far more tokens per query, compounding costs for developers and making it less accessible for startups or smaller businesses.
Jordan Wilson [00:33:48]:
So critics argue that Fable five's powerful mythos core is effectively muzzled by these heavy guardrails, forcing users to pay premium prices for performance that they cannot fully access. So, yeah, essentially, there's all these rollbacks as well. So previously, if you, were using, Fable, it might have rolled back to Opus 4.8, but not told you. Right? So if you were using this, for researching as an example, anything on machine learning, artificial intelligence, if Anthropic thought that, oh, maybe you're distilling our model information, even if you were using it for a legitimate research purposes, it might roll back to a quote, unquote, dumber opus 4.8. Right? Opus 4.8 is so an amazing model, but you would think that you were getting a mythos level fable output, and it would be instead feeding you Opus 4.8. So a lot of people in the AI community, researchers, people who are trying to even write, on the bio side, biotech, biomed. Right? They're getting these things flagged or they can't use the model. So it's like, okay.
Jordan Wilson [00:34:51]:
If if one of the big, you know, upsides of AI is we can use it to cure diseases and medicines and and protein discovery and all these things, and we can't use the model. Or, you know, we think that we're using this big strong model that's amazing that we're paying all this money for, and we don't know, but you're actually feeding us Opus 4.8 instead. Not a good look, which is why I think this has been the biggest week of backlash maybe ever. Right? I think there's a lot of bellyaching when, GPD five came out, but I think that was not, like, backlash per se. It was just people were underwhelmed. Right? They were like, we thought it was gonna be way better, and it was just a little bit better. Right? And people were mad that they got that they were gonna get rid of g p d four o. So I don't think that was necessarily backlash.
Jordan Wilson [00:35:33]:
That was just people, you know, maybe addicted to the sycophantic g p t four o, and they're like, oh, we want it back. Right? You you know, this five o is or, you know, g p t five isn't that great. But this is different. This is, you know, really unprecedented, uncharted territory. So I think, you know, I don't know. We'll see how this plays out. I assume, right, maybe even by the time, like I said, I'm I'm recording this, a day or two early. Hopefully, by Monday, Tuesday, this is gone because this is not good just for the industry.
Jordan Wilson [00:36:02]:
I don't think any other companies would follow suit, but who knows? I could be wrong. Yet, a pretty big story to keep an eye on. Alright. So that is our big AI news stories for the week. Like I said, if you wanna know more on the fable five, make sure to go listen to episode seven ninety six. We also did the entire rundown on Apple's WWDC announcements. Go listen to that in episode seven ninety four. And also on Wednesday, we went over the new codex sites, doing a hands on on that one.
Jordan Wilson [00:36:35]:
I thought it was a really fun show, so make sure you go check that one out as well. But here is the roundup of what's new and what's next because these seven big stories weren't the only big things that happened. There was a lot more. So some of these are rumors, leaks, just smaller stories. Here we go. Bullet point style. Here's everything else that you need to know. So Meta is reportedly keeping distance from Trump's AI ownership idea, which could delay the president's plan for a public sharing wealth plan with AI companies.
Jordan Wilson [00:37:03]:
We talked about that in last week's AI news that matters. Kimmy released their Kimmy for work with native agent swarms and 300 local agents. President Trump did say aside from Meta shying away that all the top AI firms may give the government stakes ahead of these blockbuster IPOs that we talked about. Speaking of those IPOs, completely forgot to get the SpaceX story in, so we'll actually tag that one on at the end. But back to our what's new and what's next, Sam Altman speaking of IPOs reportedly told staff at OpenAI that they could go public within a year. Next, New York lawmakers approved a one year pause on large data centers. Next, OpenAI agreed to acquire ONA, adding secure cloud execution technology to codex. Google began rolling out Gemini 3.5 live translate for speech translation across 70 languages.
Jordan Wilson [00:38:01]:
I think that one's really cool. We went over that one in Friday's show where we go over our Friday's features. Next, JetGPT rolled out interactive charts on mobile and web. Google is rolling out Gemini 3.5 and code tools to select notebook l m users. Right now, only Ultra, so we'll cover that once it goes out to everyone else. Next, a Mississippi federal judge removed all lawyers from a case over AI hallucinated citations. Not good. Gemini Omni Flash takes first in arena's video leaderboard.
Jordan Wilson [00:38:33]:
Next, OpenAI is planning a $500,000,000,000 Ohio infrastructure deal according to reports. Speaking of arena leaderboards, Fable five from, Claude took first place in almost all categories, including text and agents. Oracle customers can soon use their universal credits for open AI models and codex. IBM, in a new study found that two thirds of tech leaders, accountable for AI that they don't even control. China reportedly is preparing a nearly $300,000,000,000 AI funding plan for nationwide infrastructure build outs. Amazon secured a $17,000,000,000 delayed draw loan for AI infrastructure. OpenAI added email drafting, editing, and sending. Pretty cool.
Jordan Wilson [00:39:22]:
We went over that one on Friday show as well. And JPMorgan said that AI agents drove a 20% increase in private banking gross sales. Alright. So that's all for our, kind of, bullet points roundup. Now let me not forget, you know, one of our biggest stories will actually do this one to wrap here. So, SpaceX. Yeah. SpaceX is public, and what a big splash making Elon Musk the world's first trillionaire.
Jordan Wilson [00:39:54]:
So SpaceX went public officially and live on Friday, and the SpaceX shares jumped about 25% since their opening in their Nasdaq debut trading near a $170 and pushing the rocket company's market value to roughly 2,200,000,000,000. Yeah. Talk about a astronomical in terms of their reported revenue right now. So the stock opened at a $150 per share above its a 135 IPO price, but below the 170 let a 175 level initially suggested by trading desk interest showing strong demand, but some caution around the evaluation. So they the debut reportedly makes Elon Musk the world's first trillionaire on record and is expected to create thousands of new millionaires, at SpaceX and several new billionaires among the earliest SpaceX employees and investors. So Goldman Sachs rose about 3% as investors rewarded its lead role in the IPO, while space related stocks such as Redwire and Rocket Lab fell sharply as attention and capital shifted toward SpaceX. So CNBC reported the retail traders showed heavy interest in the offering, but SpaceX allocated a smaller than expected share of IPO stock to retail buyers, leaving many to chase shares after trading begin. So this is big for a lot of reasons that are outside of what you think SpaceX actually is.
Jordan Wilson [00:41:35]:
That's because in May, essentially, SpaceX became a lot of different things, but, Grok and XAI, kind of Elon's other companies on the AI side are a part of SpaceX. So now not only does Elon Musk have two companies that are top 10 in market cap with Tesla in there as well. But I think SpaceX and we'll see this more how this plays out over the next year or so. But what we've seen aside from them being the rocket company and now, housing xAI and GROC, well, there maybe they could be a big compute player as well because we've seen stories in recent months about how how, as an example, they have a multibillion dollar longer term partnership with Anthropic. So all of these other AI companies that maybe can't get the compute that they need, it looks like SpaceX is going to be a major player in that. So not only from the data centers that they've already built, the Colossus series, but also, with the, group's plans to eventually have compute in space. Right? Which sounds crazy, but a lot of companies are talking about it. And, obviously, you would assume the AI slash space company would be one of the first to actually accomplish that at scale.
Jordan Wilson [00:42:56]:
So there's this is a lot more. Right? So as we talk about SpaceX in the coming months here on the show, it's not just about the rocket company. Right? SpaceX also includes xAI slash GROC as well as just the ability to serve that AI compute that thousands of enterprise companies need. Because right now, if you want to bring bring a big AI project online, it could be difficult unless you're like a fortune 100 company to be able to get the compute that you need some time to run the world's most advanced and agentic models. Alright. So that is a wrap all of our big AI news stories. So I hope this one was helpful. So like I said, we do AI news that matters on Monday.
Jordan Wilson [00:43:42]:
On Wednesdays, we go hands on, and we bring you AI at work on Wednesdays. Usually, a demo of a, you know, new, you know, AI release or sometimes we do it by category, so make sure you tune in for that one. And then on Fridays, we go over AI feature Fridays. So all the new features that you can actually use live that day, We do that on Fridays. And then on Tuesdays and Thursdays, we kinda rotate the show. So that's our lineup. If you only listen on Mondays, which I hear a lot of people do, I encourage you to look outside of just Monday. So thank you for listening.
Jordan Wilson [00:44:12]:
Make sure you go to your everydayai.com. Thanks for tuning in. We'll see you back tomorrow and every day for more everyday AI. Thanks, y'all.