
Microsoft has restricted its employees from using Anthropic's new Claude Fable 5 model due to concerns over data retention policies. While the model is available to external customers, it is not accessible internally at Microsoft, as it requires retaining data for up to 30 days or longer if flagged. This has raised legal concerns about handling customer data and confidential information. Microsoft's legal teams are currently evaluating these changes to determine if the model can be used internally.
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© TechCrunch AIxAI's attempt to dismiss the NAACP's Clean Air Act lawsuit failed after a federal judge ruled that its gas turbines are not exempt mobile sources and that plaintiffs have standing. This legal setback confirms that AI infrastructure operators cannot bypass environmental permitting by classifying heavy industrial equipment as temporary or mobile. The ruling forces xAI to face scrutiny over air quality impacts at its Colossus data center, setting a precedent for how large-scale compute facilities are regulated under existing environmental laws.
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Microsoft Limits Claude Fable Use Over Data Concerns
17 developments
OpenAI is scaling back its ambitions as investor appetite for massive AI infrastructure bets cools. The company has lowered its fundraising target from $30 billion to $20 billion, with only $11 billion secured so far against a valuation that has dropped from $1.4 trillion. This retreat signals a growing wariness among Wall Street investors regarding the capital intensity of the AI race, forcing even the most dominant players to adjust their financial expectations.