Nadella criticizes Anthropic’s limits on Fable, says companies should build cheaper custom AI models

Nadella criticizes Anthropic’s limits on Fable, says companies should build cheaper custom AI models

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News Editor
2026-07-17 07:06:39
Microsoft CEO Satya Nadella criticized Anthropic’s restrictions on the use of its Fable model during an internal meeting with Copilot engineers, according to CNBC. Nadella said the way Anthropic refuses some requests is subject to excessive editorial control and lacks a sound rationale. Anthropic’s support page says the platform may switch to an older model version when users ask about certain large-model development topics. The company had previously said new safety measures introduced after Fable 5 returned online could incorrectly flag more harmless requests for blocking. The remarks carry added weight because Microsoft previously announced a $5 billion investment in Anthropic, while Anthropic committed to spend $30 billion on Azure. Some Microsoft Copilot products also use Anthropic models. Nadella also argued that companies should be able to build customized models at lower cost and keep control of internal data, rather than relying on a small number of firms that dominate AI token resources.
MicrosoftSatya NadellaAnthropicFableCopilotAzureAI

Microsoft CEO Satya Nadella criticized Anthropic’s restrictions on the use of its Fable model during an internal meeting with Copilot engineers, CNBC reported on July 17. Nadella said the way Anthropic declines some requests is under “overly editorialized control” and argued that the approach does not make sense.

Anthropic’s support page says the platform may answer with an older model version when users ask about certain topics related to large model development. Anthropic had previously said that new safety measures introduced after Fable 5 returned online could incorrectly classify more harmless requests as content that should be blocked.

Microsoft previously announced a $5 billion investment in Anthropic, and Anthropic in turn committed to spend $30 billion on Azure. Some Microsoft Copilot products also use Anthropic models, making Nadella’s remarks notable because they touch on a key partner and customer.

Nadella also said companies should be able to build customized models at lower cost and maintain control over internal data, rather than leaving AI token resources in the hands of only a few firms. “It can’t be that only two companies in the world have token capital and everyone else has to rent it. That makes no economic sense,” he said.

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