Ep 798: SpaceX goes public, OpenAI declares pricing war, Microsoft stops Claude Fable use and more AI news

**Everyday AI** (0:01)
This is the Everyday AI Show, the Everyday Podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life.

**Jordan Wilson** (0:16)
This week was a wild one in AI news. I mean, we have the world's first trillionaire thanks to AI. We also have the world's most powerful model, but one tech titan refuses to use it because of their data. And we have another big AI company that's not only going public, but they're reportedly going to start an AI pricing war to make AI cheaper. All the biggest names in AI made some big moves this week. And if you took your eyes off the road for more than a few minutes, you probably missed some pretty impactful news that will move the needle for your company or your career. But I get it. You can't spend every hour of every day trying to keep up. That's what I do for you. And that's what we do here with our Monday show called The AI News That Matters. So if you're new here, welcome to Everyday AI. My name is Jordan Wilson and we do this thing every day. And it's for you. This is your daily live stream podcast and free daily newsletter helping everyday business leaders like you and me, not just keep up with everything that's happening, but I help you separate the real from the fake, the fluff from the meaningful. I tell you what matters. You use that information to grow your company and your career. So if you haven't already, please make sure to subscribe to the podcast. If you are listening to the podcast side and then make sure you go to our website at youreverydayai.com, sign up for the free daily newsletter. We're going to be recapping not only the big AI news stories we're going over today, but everything else that's happening in the AI world that's going to impact you. So without any further ado, because we have a lot to get into and one other FYI. So normally I love doing this show live on Monday mornings. I am having to record this one a little bit early just because I'm doing some traveling. So if maybe if there's some big news that broke late over the weekend, might not have it in this episode, but make sure you do check out our newsletter for that.
All right. So we're actually going to start with a breaking update in the Anthropic vs White House Fable development. Like I said, I'm traveling this week and we actually didn't get this story in the live stream version of today's show. So this is kind of a podcast exclusive that we'll kick off the show with. So the White House's urgent action to halt Anthropic's latest AI model highlights the growing concerns about national security and the rapid pace of AI development. So the Trump administration imposed sweeping export controls on Anthropic's new AI model, Fable 5, just days after its public release, citing national security risks, according to Politico. So senior officials, including Treasury Secretary Scott Besant and White House Cyber Director Sean Cairncross, held multiple tense calls with Anthropic CEO Dario Amati, according to reports urging the company to voluntarily remove the new Fable 5 model that they had just released. Well, why? Well, according to reports, that's because Amazon CEO Andy Jassy, whose company is obviously a big investor in Anthropic, raised concerns to the White House about the new Fable 5 and Mythos model's ability to bypass safety guardrails after being asked for feedback. So the administration felt Anthropic was not taking the security threat seriously enough, and officials were frustrated by Emodi's reluctance to immediately pull the model. Anthropic argued its safeguards were strong enough and that no universal jailbreak had been found, but the government officials remain unconvinced, eventually setting a 90-minute deadline for removal. Again, this is all according to reports. So the export controls abruptly disabled Fable 5 and Mythos 5 for all customers worldwide. Banning their use also by foreign nationals and forcing Anthropic to comply. Anthropic criticized the government's action as disproportionate and called for a more transparent and technically grounded regulatory process. So, the White House's intervention follows months of debate about how to regulate advanced AI models with previous productive meetings between EMOTI and senior White House officials leading to an executive order on voluntary model submission.
Anthropic issued a statement on Friday but has not yet publicly responded to the new accusations that came out over the weekend, at least as of this recording now Sunday afternoon. So here's what Anthropic said Friday afternoon. So they said the US government, citing national security authorities, has issued an export control directive to suspend all access to Fable 5 and Mythos 5 by any foreign national, whether inside or outside of the United States, including foreign national Anthropic employees. The net effect of this order is we must abruptly disable Fable 5 and Mythos 5 for all of our customers to ensure compliance. Access to all other Anthropic models will not be affected. We received this directive from the government today, this is Friday, at 5:21 p.m. Eastern. The letter did not provide specific details of its national security concern. Our understanding is that the government believes it has become aware of a method of bypassing or jailbreaking Fable 5 We reviewed a demonstration of this specific technique being used to identify a small number of previously known minor vulnerabilities. These vulnerabilities all appear relatively simple, and we have found that other publicly available models are able to discover them as well without requiring a bypass. So, there will surely be an update to this story on Monday, and we'll be sure to include this in our newsletter so you can make the right decisions for your company. So, this obviously has both Anthropic Insiders and Connected Investors kind of shook, right? So, previously between the Department of Defense's decision to label Anthropic a supply chain risk and to prohibit the Department of Defense and certain branches of the federal government from using any Anthropic model. So, this kind of back and forth between Anthropic and the US government has been going on for a while now, but this is pretty bad timing for Anthropic. So, there was obviously a lot of good and bad reaction to their new Fable 5 and Mythos 5 release and we will be covering that in a later kind of segment here on this very show here in a couple of minutes. So, there's a lot of good hype and bad hype behind it, but this is obviously a pretty bad look for Anthropic. We'll see who was ultimately in the wrong. We haven't had kind of the ability to hear properly from Anthropic after they've gone back and forth with the government on this. So, I'm sure we'll hear more on their side of the story. So, we'll give them the proper time before we dig into this too much. But regardless, you know, the kind of rollout of Fable 5 and Mythos 5 was kind of supposed to be this last big positive splash before Anthropic ultimately decided to go public as they did kind of file their S1 paperwork about two weeks ago now. So, pretty big move. And like I said, we'll have more on this in the newsletter as it is a developing story. But let's get to the rest of our AI news. My gosh, what a week in AI when Apple's big AI announcements didn't even make our little teaser intro. But Apple's WWDC showcase a series of big AI advancements aim at closing the gap between Apple and their competitors. So, man, like in AI time, this like I know this happened Tuesday, seems like it happened a month ago. But we got to talk about it. Apple introduced a major update to Siri, powered by Gemini AI under the hood, right? So they're making their new AI assistant more capable, conversational, and visually intelligent, now available as both a stand alone app, as well as integrated across Apple's ecosystem. So it's not out yet, right? So as is most of the case with Apple's AI announcements over the past few years, it's in beta now coming fall. So we'll see when the new smarter Siri and all of these Apple Intelligence features roll out both to the iPhone and the Mac OS and iPad, I guess. But regardless, a lot to take in here. So the company has obviously emphasized and continued to preach this at WWDC, their privacy first approach to AI, stating that data used for AI requests will not be stored and can be externally verified for privacy compliance. So Apple Intelligence is the company's integrated AI system, and it's being expanded with some new features like cross app context awareness, one-tap password updating and smarter tab management in Safari. Messages and phone apps are getting AI-powered reply suggestions and the ability to pull contacts from other apps during calls. That's one I'm looking forward to, streamlining communication for all users. So AI-driven improvements are coming to search across iOS, iPad OS and Mac OS, promising faster and more accurate results in spotlight mail and photos. So the Photos app debuts some new generative AI features, including Reframe, which I personally thought was the only real novel use of AI that I personally saw out of Apple's WWDC announcement. That's essentially where you can kind of retake a photo that you already took from a different angle, a different vantage point. That seems pretty cool. They're also rolling out some extend features, some clean up, nothing that we haven't seen in a dozen or so other kind of apps before.