Microsoft CEO Satya Nadella criticized Anthropic’s Fable 5 model during an internal Copilot meeting, saying its refusals of certain requests feel “editorially controlled” and comparing it unfavorably to other creative tools. He also raised concerns about AI market concentration, saying it is problematic that only a couple of companies hold significant “token capital” resources. Anthropic had recently restored access to Fable after a temporary suspension tied to export-control compliance, and acknowledged its updated safeguards are flagging more benign requests than intended. Microsoft shares fell roughly 2% following the reported remarks.
