Nadella calls Claude Fable 5 too "editorially controlled"

Microsoft CEO Satya Nadella told Copilot engineers on Wednesday that Anthropic's limits on prompts to the senior Fable model make no sense. Per a copy of his remarks provided to CNBC, he asked: "When was the last time you used a creative tool that was this editorially controlled?"

Anthropic's support page says Fable can route some questions about building large models through an older version. When it brought the model back on July 1, Anthropic acknowledged that its new safeguards flag a slightly larger share of harmless prompts.

The target here is a partner. In November, Microsoft announced a $5 billion investment in Anthropic, and the startup agreed to spend $30 billion on Azure. Microsoft stock is down 17% year to date, while the Nasdaq is up 11%.