Microsoft restricts Claude Fable for employees over data retention concerns
Microsoft restricted its own employees from using Anthropic's newly released Claude Fable 5 model inside its internal version of GitHub Copilot because the model requires data retention that breaks Microsoft's Zero Data Retention standard. The model retains prompts and outputs for 30 days, and flagged content for up to two years, which Microsoft legal teams are reviewing over concerns about customer data and confidential information. At the same time, Microsoft made Fable 5 available to outside GitHub Copilot and Azure Foundry customers, creating a gap between what it sells and what it lets staff use internally.
Key Takeaways
- Microsoft's legal teams are evaluating Anthropic's new data retention changes.
Report AI Tech Microsoft restricts Claude Fable for employees over data retention concerns Microsoft's legal teams are evaluating Anthropic's new data retention changes.
- by Tom Warren Jun 10, 2026, 4:50 PM UTC Link Share Gift Image: Cath Virigina / The Verge Tom Warren is a senior correspondent and author of Notepad , who has been covering all things Microsoft, PC, and tech for over 20 years.
Anthropic released Claude Fable , its first Mythos-class AI model, yesterday and it's already causing concerns inside Microsoft.
- All other Claude models are still available internally at Microsoft, because they operate under Zero Data Retention (ZDR) rules.
I understand that Microsoft has been telling employees that its legal teams are evaluating changes to Anthropic's data retention requirements.
- Some prompts and outputs can even be stored for up to two years if they're flagged as violating Anthropic's usage policy, so there are legal concerns around how Microsoft should be using Claude Fable 5.
Claude Fable 5 is the first broad release from Anthropic's Mythos class of AI models, and it arrives just weeks after the company said the family was so capable at cybersecurity tasks that it was too dangerous to release publicly .
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Stats & Key Facts
- #The model retains prompts and outputs for 30 days, and flagged content for up to two years, which Microsoft legal teams are reviewing over concerns about customer data and confidential information.
Microsoft's legal teams are evaluating Anthropic's new data retention changes. Report AI Tech Microsoft restricts Claude Fable for employees over data retention concerns Microsoft's legal teams are evaluating Anthropic's new data retention changes. Microsoft's legal teams are evaluating Anthropic's new data retention changes.
by Tom Warren Jun 10, 2026, 4:50 PM UTC Link Share Gift Image: Cath Virigina / The Verge Tom Warren is a senior correspondent and author of Notepad , who has been covering all things Microsoft, PC, and tech for over 20 years. Anthropic released Claude Fable , its first Mythos-class AI model, yesterday and it's already causing concerns inside Microsoft. Sources tell me that Microsoft is limiting the use of Claude Fable 5 for employees because of Anthropic's new data retention requirements.
While Microsoft quickly rolled out Claude Fable 5 to its GitHub Copilot and Foundry customers, I'm told the model isn't available in the model picker that Microsoft employees use for internal versions of GitHub Copilot. All other Claude models are still available internally at Microsoft, because they operate under Zero Data Retention (ZDR) rules. I understand that Microsoft has been telling employees that its legal teams are evaluating changes to Anthropic's data retention requirements.
For more details please read the original article at The Verge AI.
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