Microsoft has reportedly restricted employees from using Anthropic's new Claude Fable 5 model internally, over concerns about its data retention policies.
The model has already been rolled out to external customers through GitHub Copilot and Foundry, but it's absent from the internal model picker Microsoft employees use. Microsoft's legal team is currently reviewing Anthropic's data retention service terms, which differ from the Zero Data Retention (ZDR) rules that Microsoft applies to its own internal offerings.