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Major AI Shifts: Microsoft’s Multibillion-Dollar Bet, Anthropic’s Pharma Entry, Cloud Infrastructure Wars, and Government Moves
Artificial intelligence headlines can change strategic direction for business and enterprise leaders overnight. This week’s developments highlight substantial new commitments, commercial shifts, and regulatory momentum directly impacting business adoption and digital transformation efforts.
Microsoft AI Consulting: $2.5 Billion and 6,000 Employees Committed
Microsoft has launched Microsoft Frontier Company, dedicating $2.5 billion and deploying 6,000 employees to support clients’ AI adoption efforts. This initiative converges engineers, technical consultants, support staff, and sales experts to embed directly within client organizations, a move echoing the forward deployed engineering model popularized by Palantir and now widely mirrored by OpenAI, Anthropic, and Google.
Key implications:
Microsoft’s dual role as major investor in OpenAI and Anthropic provides broad access to AI models and positions the new consultancy as a unique partner for firms evaluating multi-model strategies.
Competition among technology giants is intensifying, with Amazon announcing a $1 billion AI support push just days earlier.
This service model targets organizations struggling to bridge the gap between advanced AI capabilities and active employee use—a capability gap that remains wide even in tech-forward industries 03:31.
Despite these bold moves, Microsoft’s stock is down 20% year-to-date, the steepest among major tech firms, reflecting market uncertainty around disruption in established software markets 04:19.
Anthropic’s Move into Drug Discovery: Risks and Opportunities for Pharma
Anthropic’s announcement of Claude Science signals its intent to integrate AI directly into pharmaceutical research workflows. With plans to streamline fragmented scientific tools and datasets via an AI workbench, Anthropic is not only selling AI solutions to pharma but potentially competing as a drug developer.
Considerations for enterprise:
The entry of major AI labs into drug discovery blurs the line between software provider and competitor for pharmaceutical clients 07:45.
Enterprise customers must review data retention and competitive risk policies as Anthropic’s AI models—through initiatives like Claude Science—may now overlap with client IP and proprietary drug data 08:15.
Anthropic’s business strategy aligns with leaders such as Google DeepMind’s Isomorphic Labs and Insilico, and may prompt new partnership and privacy conversations across pharma and biotech verticals.
Meta’s Compute Sale: Cloud Infrastructure Competition Expands
Meta is leveraging excess AI data center capacity via MetaCompute, formally entering the cloud infrastructure business and challenging established providers such as Amazon AWS, Microsoft Azure, and Google Cloud.
What’s different:
Meta’s substantial CapEx spend on multi-gigawatt data centers, initially built to power internal products like advertising and recommendations, is now being redirected to monetize enterprise compute consumption 10:47.
This business shift is motivated by a supply-demand mismatch, where early projections for in-house AI model demand have not materialized at scale, similar to SpaceX’s approach to selling surplus compute to other firms 12:42.
Customers evaluating cloud contracts will see new pressure on pricing and resources as legacy advertising platforms pivot to B2B infrastructure 09:21.
Cloudflare’s AI Crawler Policy: Shifting Publisher Data Dynamics
Cloudflare’s recent decision to block certain AI crawlers on ad-supported pages illustrates a significant change in internet architecture and content monetization for both publishers and AI firms.
Strategic impact:
By default, mixed-use crawlers (including Googlebot) will face access restrictions on pages where publishers monetize with ads, breaking the assumption that public web content is fair game for AI training 14:39.
Cloudflare’s infrastructure powers a vast portion of the web, so this policy shift upends access to data for search and large language model training, particularly for organizations relying on content visibility and online discovery 15:53.
AI Answers may start favoring large outlets with direct licensing arrangements, making it more challenging for smaller publishers and niche experts to drive organic discovery and audience growth.
US Government AI Oversight: Voluntary Standards, Model Suspensions, and Potential Equity Stakes
US government involvement in AI oversight has become more hands-on, with significant developments in voluntary model standards, model suspensions, and conceptual discussions of government equity stakes in leading commercial AI entities.
Key developments:
Federal agencies are working with AI firms to establish voluntary standards for model releases, rooted in national security and export control concerns 19:10.
The Commerce Department briefly suspended and then reinstated export controls on several advanced models—including Anthropic’s Fable and Mythos—but only after adding aggressive new cyber-defense classifiers that can now lead to high rates of false positives even on innocuous queries 24:27.
Data retention policies are rapidly evolving. Updated Fable 5 and Mythos 5 models override standard zero data retention, meaning all prompt data is stored for at least 30 days, with flagged content potentially stored for up to two years. This new reality has already led major investors, such as Microsoft, to prohibit internal use of these models for security and privacy reasons 27:40.
OpenAI is reportedly engaged in early-stage discussions to grant the US government a 5% equity stake—a move reminiscent of the Alaska Permanent Fund model, with the stated goal of giving the US public a financial stake in the economic benefit of AI development 29:02. This would potentially set a precedent for other leading firms and could require Congressional approval.
Takeaways for the AI-Focused Enterprise
Every business with a stake in digital services, data, or computational workflows faces new and urgent questions:
Strategic partnerships in the AI space must be scrutinized not just for technical capability, but for competitive risk exposure and privacy guarantees as providers deepen vertical integration.
Procurement and adoption of AI services now encounter added volatility as leading models can become unavailable to most users with little notice, or carry long-term data retention policies incompatible with enterprise needs.
The quickly shifting landscape around government standards, compliance, and regulation means that decision-makers must stay prepared for sudden changes in AI access, licensing terms, and data governance.
New players in cloud and infrastructure may tilt market economics, but require careful due diligence on stability, roadmap, and differentiation.
With billions in capital shifting, new service models taking hold, and both technical and regulatory goalposts on the move, strategic vigilance is essential for AI-savvy business leadership.
Topics Covered in This Episode:
- Microsoft Frontier Company $2.5B AI Investment
- Anthropic Claude Science Drug Discovery Launch
- MetaCompute Cloud AI Infrastructure Business
- Cloudflare Blocks AI Crawlers on Ad-Supported Pages
- US Government Voluntary AI Model Standards
- Anthropic Fable 5 Model Reinstatement Updates
- Fable 5 Enterprise Data Retention Policy Changes
- OpenAI Considers US Government 5% Equity Stake
- Anthropic SONNET 5 Model Release
- Meta Watermelon Model Rumors
- Alibaba Bans Claude Code over Security Concerns
- Anthropic and Samsung Custom AI Chip News
- OpenAI GPT 5.6 Soul Ultra in Codex
- US House Kids Act AI Safety Legislation
- Google Gemini Omni Flash and Nano Banana 2 Lite
- Cursor and OpenClaw Mobile App Launches
Episode Transcript
Jordan Wilson [00:00:15]:
This week kind of seemed like upside down week in AI. I mean, let's look at the headlines. Microsoft is starting a new company with billions of dollars and thousands of employees. Infropic is going to start making drugs. The world's most powerful AI model will no longer be available via subscription in a few days and maybe even a weirder one. OpenAI is reportedly considering giving up up to 5% in equity to the federal government. Yeah. Let's take some time to sort out this week's AI news and see if we can't enter this week standing right side up.
Jordan Wilson [00:00:54]:
Let's get into it. Welcome to Everyday AI. If you're new here, my name is Jordan Wilson, and, well, we do this every day. This is your daily livestream podcast and free daily newsletter helping everyday business leaders like you and me keep up with the AI madness because, yeah, sometimes it seems like we're flipped upside down. I help you every day make sense of it and help you make smart decisions to grow your company and career. So it starts here with the unedited, unscripted livestream and podcast, but please make sure if you haven't already to subscribe to the podcast on Apple Podcasts or Spotify and go to our website at youreverydayai.com. Sign up for the free daily newsletter. We're gonna be recapping the highlights from today's show and a whole lot more.
Jordan Wilson [00:01:35]:
So let's get into it a ton to cover. So let's start with Microsoft. Yes. Microsoft started a new company, as they invested $2,500,000,000 in a new AI client services company called New Frontier Company. Yeah. So Microsoft Frontier Company, sorry, is the exact name. So Microsoft making a major push to help businesses adopt AI with that $2,500,000,000 investment in the new group called Microsoft Frontier Company. So Microsoft will also embed 6,000 employees directly with clients to support AI adoption using the model now very commonly known as forward deployed engineering or FTEs.
Jordan Wilson [00:02:28]:
We've seen OpenAI and Entropic and Google make, similar plays, but Microsoft taking it kind of almost a step further with a $2,500,000,000 commitment of its own and 6,000 employees. So the new division brings together existing Microsoft engineers, technical consultants, support staff, and salespeople with deep industry experience. So the move comes just days after Amazon announced a $1,000,000,000 initiative for similar AI support services, highlighting the fierce competition among tech giants to lead in AI business solutions. Yeah. Weird. Everyone's becoming a consultant now. So Microsoft's approach aims to help clients navigate tough decisions such as which AI models to use. Like, do you use OpenAI or INTROPICS models? Well, Microsoft is a big investor in each, so maybe that's a leg up that the new company, Microsoft Frontier company will pitch when they're like, hey.
Jordan Wilson [00:03:31]:
You should hire us to help you use AI versus, you know, hiring OpenAI or Infropix deployment companies because we use all of their models. So the company says its platform supports more AI models and integrations than competitors like Palantir, which popularized the forward deploy engineering role in the tech world before all the AI or the large language model companies, I guess, got into the race. Microsoft has invested tens of billions of dollars in data centers for generative AI and offers, obviously, many AI powered tools and solutions from, you know, the dozens of, you know, copilot, offerings across their tech stack. But Microsoft, so far, their stock is down a bit this year. They're actually down about 20% year to date, the biggest drop among the major tech companies partly due to concerns that AI could disrupt established software markets. So the company did, though, generate about $2,000,000,000 in revenue from enterprise and partner services last quarter, up 2.5 from a year earlier. So, yeah, this one not necessarily surprising that Microsoft is starting its own deployment company, but maybe surprising that they committed $2,500,000,000 and 6,000 employees, especially since Microsoft is in the middle of a lot of cuts. Right? They've cut thousands of employees, and kind of pushing the early retirement, portion as well.
Jordan Wilson [00:05:05]:
So it's it's it's one of those things that I think that every single big company, you know, that is building any type of AI will have these forward deployed engineers. Because what we've seen more than anything else, I think, especially, it's become very clear over the last year that even companies that are usually somewhat agile and can adopt, to do digital technologies, well, hardly no company out there has been able to close the capability gap between what AI models can actually do and what the majority of their employees are actually using it for. Right? Which is why huge companies like OpenAI, Microsoft, Google, Amazon, right, everyone, they're now coming up with these roles where their employees go in work at these other companies and help them essentially use their tools. So it's something we'll probably do a deeper dive later. Like, what does an FTE role look like? Right? What are these companies coming in to do? Because I know not every single, you you know, listener out there is going to be able to at their enterprise bring in, you know, Microsoft FTE or an OpenAI or an Infropic FTE into their organization. So we'll probably, unpack later what that actually looks like. Alright. Speaking of still living in upside down world, INTROPIC is gonna make drugs now.
Jordan Wilson [00:06:33]:
Yeah. It's apparently a thing. So Anthropic has announced Claude Science, an AI workbench designed to streamline scientific research by integrated, by integrating fragmented tools and datasets into a single environment. So, yeah, they're making waves with the new claudience, making their trying to make their splash in the pharma sectors, as they launch into with claudience, as they launch into drug discovery. So the new claudience platform generates figures and visuals aiming to help scientists accelerate the pace of discovery and health care innovation. Anthropic, though, is already a leading provider of coding tools and AI models. Right? We all know that. With a strong presence among biotech and pharma customers.
Jordan Wilson [00:07:22]:
So at a recent briefing, events called AI, the briefing AI for science, Anthropic revealed plans to help develop drugs faster, focusing on treatments for neglected diseases. So this marks one of the most direct attempts by a major AI company to move in drug development rather than just selling AI to other drug makers. So the announcement puts Anthropic in a unique position as it will both be a software provider and a potential competitor to its pharma clients. And, yeah, you're gonna wanna stick around, for this piece later when we talk about mythos and Fable five kind of coming back and the data retention policy because I think it's gonna come into play now that we see companies like Anthropic, spinning up completely new companies and maybe competing against others that they have access to their data. So Anthropic joins a growing race that includes AI first drug companies like Insilico, Google DeepMinds, ice of, isomorphic labs, and established pharma giants building or buying their own AI tools. So Infropic has not provided detailed information yet about its drug development goals or what it will do if it discovers promising candidates, but they did say along with this, new announcement with Quad Science that they are going to be working in drug developments. Alright. More and more.
Jordan Wilson [00:08:50]:
More and more big tech companies doing new things. So, yes, first, Microsoft with their, new, Microsoft Frontier company, Anthropic, gonna be trying to discover drugs. And now Meta is a NeoCloud. They're selling compute. Alright. So Meta Platforms is launching their own subsidiary, subsidiary called MetaCompute, a new cloud infrastructure business that will sell the company's access AI computing capacity to outside customers. So the move positions Meta as a direct competitor to Amazon with their AWS, Amazon Web Services, Microsoft Azure, and Google Cloud, marking a major shift beyond Meta's traditional focus on consumer apps and digital advertising. So, Meta's stock did close up about 6% late last week, but still down a little bit month over month and year over year.
Jordan Wilson [00:09:47]:
So the company aims to turn its significant investment in AI data centers into a new, in what they hope, a potentially high margin revenue stream by targeting enterprise technology budgets. So the success of MetaCompute will depend on how quickly the company can attract paying cloud customers and whether this new business offsets the heavy capital spending on AI infrastructure. So MetaCompute represents the company's clearest attempt yet to monetize its multi gigawatt AI infrastructure, which has so far mainly powered internal products like ads and recommendations. And for those customers, maybe, that are using Meadows new Muse Spark model haven't really met them yet. But entering the cloud market puts Meta in direct competition with established players and also raises questions about how existing cloud providers and AI chip suppliers will respond to a new large scale entrant. So this one, when you look at it now, maybe not super surprising. Right, MetaNet has been one of the leaders in building out infrastructure for AI. Right? They've, started along with probably, you know, x formerly known as Twitter.
Jordan Wilson [00:11:07]:
Right? So all of well, now I think they're technically known as SpaceX. Right? It's all of Elon Musk's, companies combining into one. I think they've been the leader, in getting new, you know, these gigawatt compute factories up and running. But Meta is definitely one of the big names. Right? And being able to essentially churn out these large data centers, they obviously, were using them before to power, you know, the meta networks. So now when they're trying to use this for their own models, well, kind of the chatter in some of the anonymous reporting is like, well, yeah, this makes sense for Meta because they built out all of this infrastructure. Right? All of this, tremendous CapEx spend. Right? Billions of dollars buying all these, you know, buying and building all these factories and breaking all this compute online.
Jordan Wilson [00:12:00]:
And, well, people are saying, well, yeah, Meta is selling it now because they're not using it. Right? That's the, the allegations anyways is that Meta is getting into this business as well because they built up all of this, you know, it's kinda like the supply and the demand. They built the supply assuming that their models, right, whether, externally people using the new MetaMuse model, which I actually think is a pretty good model. I know people kind of have poo pooed on it. I think it's, you know, pretty good, and we'll see what Alexander Wang and, Zuckerberg and crew bring out with the next meta models. But regardless, there's not many companies that are sitting there saying, hey. We have a ton of extra compute. Let's build it.
Jordan Wilson [00:12:41]:
Surprisingly or or let's sell it. Surprisingly enough, right, the other company that did it successfully, albeit, is, you know, SpaceX slash x slash Brock slash Elon Musk's companies. Right? And you can make the same argument for them that they didn't really have the demand. They thought everyone's gonna be using Grok. Turns out not a lot of people are, but they've successfully, very successfully, by the way, SpaceX has, been putting out all of these, you know, longer term, partnerships where they're selling compute. So now Meta looks like is hoping to take a page out of SpaceX's or x's book when maybe they were preparing for more demand for their AI models. It wasn't there, and then they quickly sold it, or rented it out to companies, well, like Aintropic. Alright.
Jordan Wilson [00:13:29]:
So here's an interesting one that I didn't think was gonna make a splash on this week's AI news. But looking at its potential long term ramifications, I think this new move from Cloudflare definitely, you you know, requires us to spend a little bit of time on it. So here's what's new. Cloudflare has announced that they are blocking some AI crawlers on ad supported pages, which could reshape how well humans and AI bots access the web. So starting in September, Cloudflare will default to blocking AI training and agent crawlers on ad supported pages while still allowing search crawlers, and that's a shift that could affect a large share of the web because, well, CloudFlare essentially runs, like, half of the Internet. So the key change is that CloudFlare will judge crawlers by what they do, not just who they are. Meaning that mixed use crawlers that handle both search and AI training could be blocked from training access if publishers choose that setting. Here's why that's important.
Jordan Wilson [00:14:39]:
Well, Cloudflare says that these mixed use crawlers account for about 36% of crawler activities. So you're like, okay. What's these crawlers? Why do they impact me? Well, the big one is Googlebot. You know, how your company probably has gotten over the years a lot of business, a lot of visibility from Google search. Yeah. So now a lot of publishers may just go click that block button and, well, maybe it's a good thing. It might be a bad thing. That's not for us to determine here, on this news recap show, but, but those bots tied to companies like Google, Apple, and Microsoft, may now face new limits when their search and training functions overlap.
Jordan Wilson [00:15:22]:
So for publishers, the move creates new leverage because public content is no longer treated as automatically free training material for these big AI companies, especially on pages designed to earn revenue from human readers through ads. So according to reports, CloudFlare is moving from a pay per crawl marketplace toward a pay per use model using the new x four zero two standard, an open payment protocol reportedly backed by Cloudflare, Stripe, Amazon, Google, and Microsoft. So the risk is that AI Answers could start favoring large publishers with these licensing deals, making smaller blogs, local news sites, and niche experts harder to find, which matters for anyone building a career or company around online visibility. So this one, another one to keep an eye on. Right? A lot of times we're not paying much attention to the plumbing. Right? To the AI plumbing. You know, the data centers, but also things like this. Right? I think we become overly, maybe overly reliant on search inside of AI.
Jordan Wilson [00:16:32]:
Right? So when you go and you use, Chad GPT or Kodex or Claude or Claude code or Google Gemini, etcetera, right? Almost every single query, whether you see it or not, is pulling from the web. So there's obviously been a lot of uproar in the publishing community over the past two to three years as more and more of that direct traffic is now just kind of ingested inside of these answers that come inside of these chatbots. And, well, what does that actually mean? Well, it means a lot of things because chances are you might want someone to land on your page and become your customer. Or in the case in this example of what CloudFlare is kind of, talking about here, well, maybe you get, a little penny from Google AdSense or something like that, you know, for every certain number of users that end up on your page. So for those people who are more, you know, trying to draw, you know, readers in the masses to come to their website and they just get paid by putting ads on their website. Right? They've obviously been hit very hard as well by AI, by big AI companies essentially consuming all of this information, and then just more or less kind of displaying a, I guess, collection of the answers, right inside of the AI chatbot. So, this one from Cloudflare definitely one to keep an eye on. Alright.
Jordan Wilson [00:17:54]:
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Jordan Wilson [00:18:31]:
Alright. Now we've got a lot of news when it comes to AI models in the US government. Yeah. We're gonna get to Fable and Mythos and even something with OpenAI, maybe partnering with the federal government. But first, we have some new news and developments when it comes to this new, voluntary model standards as part of president Trump's executive orders on AI models. So the US government is moving closer to announcing new voluntary standards for AI models, a step aimed at tightening oversight and addressing national, security concerns. So, according to reports, The US is in advanced talks with leading AI companies to create voluntary standards for releasing new AI models with an announcement expected as soon as this week. So the new standards would set clear benchmarks for advanced AI models, establish release timelines, and clarify who can access these technologies both in The US and internationally.
Jordan Wilson [00:19:37]:
National security is a driving concern with Washington seeking to prevent misuse of powerful American AI by military intelligence services in China, Russia, and other countries of concern. So in June, president Donald Trump issued an executive order requiring federal agencies to work with top AI developers and AI labs to test advanced models before public release and to draft new standards for their deployments. Google has been actively involved in discussions with the government according to reports, particularly regarding the release of advanced coding models with more sophisticated capabilities. So the US commerce department recently lifted export controls on entropics, fable, and mythos models just weeks after suspending them due to national security concerns. Then we heard from OpenAI when they announced their, GPT 5.6, about a week and a half ago, said that they were doing this tiered release. They weren't releasing it to the public, and they were only releasing it to trusted, testers that had been essentially vetted by the government or approved between OpenAI, the testers, and the government. So both OpenAI and Anthropic are preparing for IPOs, which makes this news with the government extremely interesting and one to watch, making government oversight and standards especially relevant for their business strategies. And then these voluntary standards could impact how quickly new AI tools reach businesses, developers, and the public, potentially slowing releases but increasing safety and transparency.
Jordan Wilson [00:21:17]:
So this is what we all knew was going to be coming. Right? The debacle between anthropic and the US government obviously was pre right. We knew something like that was gonna happen. Anthropic and the US government had been going, tit for tat since, like, I don't know, February. So we knew when, you know, anthropic spent a couple of months hyping up how dangerous, you know, their mythos model was, and it was a cyber weapon, and they were begging for, you know, government involvement, essentially. Right? We knew that that was gonna happen. But this is a new development that we see that the, the companies and the US government might be close to announcing something this week on a set of actual standards. Because one thing that Anthropic responded to, you know, when they announced, and released Mythos and Fable on a Friday, and then by the, weekend, it was essentially pulled.
Jordan Wilson [00:22:17]:
Right? So this model was quote unquote out in the public for, like, two or three days. It was pulled and, you know, it seemed like there was not going to be a good, way to have these set of rules, and safeguards that every single company would have to play by. Right? According to reports, essentially, we heard it was Amazon CEO, that that ultimately flagged this to the US government and said, hey. You know, our team here at Amazon found this this jailbreak or this vulnerability in the Mythos model. They told that to the US government, and then the US government essentially said, alright. Well, you gotta pull it immediately, anthropic. Right? And anthropic didn't really have a way to do this. They didn't have a process to go through to appeal it.
Jordan Wilson [00:23:03]:
So this is good news, I think, for all AI companies, especially here in The US. Yes. We were supposed to have, you know, new models from, OpenAI and Google that were supposed to land in June. Things have been delayed. But I think, ultimately, a couple of weeks of delays, for ultimately a more secure, more, you know, strictly vetted AI is probably for the benefit of all of us. So this is one of those things. Hey. A couple of weeks of patience and getting something set up with the government, you know, even though you don't want to go into the state of sovereign AI, it's probably for the best versus just having all of these one off reactions.
Jordan Wilson [00:23:49]:
Because if your business as an example, let's just say your business shut down for a day and said, alright. We're reworking our entire organization around Mythos, and then Mythos drops. Right? And it was gone for nineteen days. Right? Nineteen days. If your company did that, you may have been kind of screwed. Right? I'm sure most companies didn't do that, but that's just an example on why I think we need this set of, streamlined safeguards and accountability between the US government and the AI companies. Alright. Speaking of that, yeah, the other news as well, Fable five is now back.
Jordan Wilson [00:24:27]:
It's actually back. So Anthropic has reinstated its advanced Fable five model after a nineteen day global suspension. And they did add some kind of aggressive new cybersecurity classifiers to address the US government concerns about that jailbreak exploit that I just talked about. So Infropix says the new classifier blocks over 99% of the previously reported exploit attempts, but it is also so strict that it frequently misidentifies harmless software development, coding, and even simple personal biology related prompts as security risks. So when a prompt triggers a new safety filter, Anthropic says the system automatically reroutes the task to Claude Opus 4.8 instead of Fable five or Mythos five, whatever you may be using, and then notifies the user. That's good. It actually notifies them leading to a noticeable increase in false positives for regular users. So that is, I guess, the good news is that, after a nineteen day delay, Mythos five and Fable five, which is essentially Mythos five with guardrails, are back.
Jordan Wilson [00:25:43]:
But here's the downside. It's not truly back for most people. So, yeah, look at your watch. It's gonna be gone for most users tomorrow again. That's because anthropic is not going to include, Fable five and myth mythos five wasn't available anyways, but Fable five had been available if you were a paid subscriber. So that's no longer the case. So, after Tuesday, tomorrow, Anthropic says that Fable five access will only be if you are paying those very expensive API prices. They did hint and say, maybe we'll bring it back in the future if we have enough compute, but the only promise is that it's gonna be gone in a matter of hours.
Jordan Wilson [00:26:31]:
So Anthropic says the restriction is due to the model's high computational demands and the current infrastructure limits, and they do hope that they might be able to restore broader access once capacity improves. So before you go and rush out and, you know, have your company use all the limits you can in the next day or two, it is important to remind people that the updated fable fable five and mythos five explicitly overrides zero data retention. So yeah. You know that whole CDR thing that makes, anything in enterprise possible. Yeah. That's out the window. Because all out all inputs and outputs in Fable five and with those five are stored for at least thirty days even for those enterprise clients who previously had strict privacy guarantees. So if a user's prompt is flagged as a potential policy violation, which we've seen can be literally anything, the data can be held for up to two years for human review, and then automated safety scoring data may be stored for up to seven years to monitor abuse patterns according to, well, Anthropic's privacy policy.
Jordan Wilson [00:27:40]:
So that's the reason that big enterprises like Microsoft banned internal use. Yes. Microsoft, the company that is one of Anthropic's largest investors and makes a ton of money selling Anthropic's AI through their systems, banned internal use of Mythos and Fable because you can't get away with them taking your data. There's no way around it. Alright. And, yes, that is a first for enterprise AI. Has never happened before. So they became the first frontier AI provider to essentially say, hey.
Jordan Wilson [00:28:13]:
Yeah. Even if you're an enterprise company, paid us millions of dollars, yeah, we're gonna keep your data. So just keep that in mind before you say, oh my gosh. You know, we have this fable thing for another thirty some hours. Let's go out and dump our company's entire code base or remember how Anthropic is, well, trying to, create, go down the drug discovery route. Maybe you're a pharma company and saying, hey. We pay all this money for, you know, enterprise subscriptions, subscriptions to Anthropic. We should all go, you know, use our our fable five and see what we can cook up.
Jordan Wilson [00:28:48]:
Yeah. You might wanna pause on that. At least talk to your legal and your IT, and I don't know. Maybe take a page out of Microsoft's book and don't do it. Alright. Last but not least, maybe the ultimate curve ball in our upside down AI week. OpenAI is reportedly considering giving the US government a 5% stake in the company. So according to reports, OpenAI is in early discussions to offer the US government a 5% stake in the company.
Jordan Wilson [00:29:19]:
So the talks are part of efforts by major AI firms to improve relations with the Trump administration as regulatory pressure on the industry increases according to reports. So OpenAI CEO Sam Altman is advocating for The US public to have a financial stake in the company, aiming to share the economic benefits of AI development more broadly. So the proposal could see other leading US companies, including Anthropic, Google, and Meta, asked to give similar stakes to the government, though the participation is not confirmed. And, yeah, reports said that at least Anthropic and the US government had not yet had these similar, talks as OpenAI and the US government have. So the plan is actually inspired by the Alaska Permanent Fund, which invests oil revenue for public benefits and could require an act of congress to implement. So the discussions are right now being described as consent, conceptual and at an early stage with no formal agreement yet in place. So the move comes as Washington intensifies oversight of AI companies highlighted by the obvious, anthropic recent suspension of its latest model due to those national security concerns. So both OpenAI and Anthropic have previously floated the idea of a public or sovereign wealth fund to distribute AI generated wealth to citizens.
Jordan Wilson [00:30:46]:
OpenAI and Anthropic are also both obviously preparing to go public, and it is estimated that both companies are gonna come in valued at more than $1,000,000,000,000 at their market cap. So Altman has reportedly discussed the idea with president Trump, commerce secretary Howard Lutnick, treasury secretary Scott Bessens, and senator Bernie Sanders who, Bernie Sanders who had proposed a sovereign wealth fund financed by a one time 50% tax on leading AI companies. So, yeah, Definitely, all the big companies this week either starting new companies going in completely different directions or apparently talking with the federal government to give the American people a small slice of the AI pie? I don't know. We'll have to find out and see, but that was a lot. But we always have our little roundup at the end where we go over what's new and what's next. So some of these are maybe big stories that any other week might have made our top AI, news list. Others are some rumors, some things around the corner, but let's get to it. Here we go.
Jordan Wilson [00:32:00]:
Our bullet point, what's new and what's next. So Anthropic released SONNET five as the default quad model offering near Opus performance for all users. Yeah. This didn't even make our top story because SONNET five, I personally like it, but it's not really even a top three anthropic model right now. So I don't even think it's actually that big of a story. Although, I think it's actually a really good model. Next, OpenClaw has landed on iPhone and Android. A new report says OpenAI has found a way to cut inference cost in half.
Jordan Wilson [00:32:35]:
And if that's true, that is a monumental deal. Apple has added MCP server to Safari, enable a direct AI agent web debugging and preview. That's big. Meta is reportedly cooking up a new model, which they've codenamed Watermelon, and it allegedly matches g b d 5.5, results, and it uses 10 times of Muse's compute. So, yeah, their last model was MetaMuse, previously codenamed Avocado. So we'll see if this is their medium size or maybe their large size Muse model in watermelon. Next, a report says that Alibaba banned the use of clogged code and ordered employees to remove clogged models over security concerns. We're not sure if that is data retention or something else.
Jordan Wilson [00:33:24]:
A new report says Anthropic is working with Samsung to make its own custom AI chips after OpenAI and Broadcom launched the jalapeno chip. The White House is set to announce a new AI model and standards, which we just talked about. OpenAI teased a codex related keyboard device with popular hardware, Maker Work Louder. The US House passed the Kids Act, adding a new online safety rules for social media and AI. It's not a law yet because it still needs the senate in presidential approval. California signed the largest US gov AI deployment with Anthropic giving Claude at 50% off. Google launched Nano Banana two Lite and Gemini Omni Flash. Anthropic launched Claude Science for drug discovery and biology.
Jordan Wilson [00:34:14]:
Anthropic released enhanced admin controls for Claude enterprise. A new report says Zuckerberg, talked about Meta's AI agents and said that they're progressing slower than expected. A new report said Ford brought human engineers back after AI missed quality check issues. Grok 4.5 has reportedly entered private beta at SpaceX and Tesla. So we'll see what is cooking with SpaceX's next model. OpenAI confirmed that GPT 5.6 Soul Ultra will be included in codex. I know that's a small detail, but right now, unfortunately, you don't have g p d 5.5 pro in codecs. But OpenAI did confirm that g p d five six Soul Ultra, the big bad one, will be included in codecs.
Jordan Wilson [00:35:03]:
That's good. And then we have a couple things we went over in our Friday feature show, which was actually on Thursday to the, due to the observed federal holiday. So, we talked about notebook l m, letting paid users generate sixty second vertical cinematic videos. So, essentially, sixty second vertical videos now available inside notebook l m. ChatGPD plus users in The US now have the new finance app. Axe launched a hosted MCP server. So now you can get all your Twitter data without having to go through the API. A little easier to send your agents to an MCP server.
Jordan Wilson [00:35:39]:
Like I talked about, OpenClaw now has their free iOS and Android app, and Cursor released in iOS app as well for paid users, and it looks pretty powerful by all accounts so far. Alright. So that is a wrap. A ton of big AI news and development. So I understand because I do this every single day. But if you constantly find yourself trying to keep up with what's happening in the world of AI, that's literally what everyday AI is here for. So on Mondays, we do what we just did. It's the AI news that matters.
Jordan Wilson [00:36:14]:
Mostly facts, a little bit of my commentary. Sometimes I accidentally throw in some hot takes, but we do that on Mondays. On Wednesdays, we normally do a, AI working. Wednesdays, we go hands on demo style, with a popular new release. We'll either have a poll in today's newsletter or tomorrow's newsletter. So I just do whatever you tell me to do for that. And then on Fridays, we do our, Friday features, which is going over new features that are actually available today. So, and then Tuesdays, Thursdays, we switch up the shows.
Jordan Wilson [00:36:45]:
So I hope this is helpful. If so, I'd appreciate it if you could take thirty seconds out of your day, to go subscribe to the podcast on Spotify and Apple Podcasts, then go to our website at youreverydayai.com. So thank you for tuning in. Hope to see you back tomorrow and everyday for more everyday AI. Thanks, y'all.