News & Updates
The latest news and updates from companies in the WLTH portfolio.
Anthropic resumes external cyber tests after Claude AI hacks | Mint
Aug 31 (Reuters) - Anthropic said on Monday it resumed external cybersecurity testing of AI models after deploying new safeguards, following incidents last month in which Claude models accessed the internet and hacked into other systems during security evaluations. Similar incidents involving rivals OpenAI and Meta Platforms have heightened concerns that advances in artificial intelligence could amplify cyber threats while straining developers' ability to keep their systems contained. Anthropic called the incidents involving Claude a "failure of operational security," saying they occurred due to errors in a third-party evaluation environment. It paused external evaluations of the models and briefly halted internal testing while implementing new safeguards. On Monday, Anthropic said it restarted external tests after adding the safeguards, which are designed to stop its AI models from reaching real websites or computer systems. The company said it now uses a "classifier" that can identify when a model attempts to escape and halt the test. Anthropic also said it now requires external organizations testing models with reduced cybersecurity safeguards to follow a "set of best practices," including keeping them in isolated computer systems with no internet access by default, checking that the systems are secure before testing begins and watching the models throughout the test. Anthropic said it rebuilt its training system after flagging more than 10% of its exercises for problems, including reward hacking, where the model finds ways to fool its training process and earns rewards without completing the assigned task. The company, however, acknowledged that the "process isn't perfect and our models are not perfectly aligned." Anthropic also said it paused some higher-risk training exercises for several weeks while it added a system to avoid rewarding the model to evade monitoring. Most exercises have since resumed, but some remain on hold pending human review or further updates to the system. Anthropic's strategy appears narrower than that of OpenAI, which on August 18 said it was slowing down much of its model development as it secures its training and testing environments. The ChatGPT maker is adding more systems to monitor the AI agents it is testing and said it paused training on its next generation of models. Anthropic said it also reassigned roughly 150 product engineers to work on security, reliability and privacy projects. INDUSTRY ACTION TO DEFEAT AI-DRIVEN HACKS The AI industry is facing scrutiny in the U.S. - where the Trump administration has finalised the details of voluntary cybersecurity tests - and the European Union, where regulators are in talks with both Anthropic and OpenAI. Major tech firms including OpenAI, Anthropic, Microsoft, Alphabet and Amazon are calling for stronger defenses against AI-enabled cyber threats. In a joint letter last week, more than 100 companies warned that time is running short to make the digital world more secure ahead of an anticipated wave of AI-driven attacks. (Reporting by Mrinmay Dey and Chris Thomas in Mexico City and Deepa Seetharaman in San Francisco; Editing by Joyjeet Das, Sherry Jacob-Phillips and Thomas Derpinghaus)
Anthropic Admits Claude AI Broke Into Three Real Companies During Safety Tests - Startup Fortune
Anthropic disclosed that Claude Opus 4.7, Claude Mythos 5, and an internal test model breached three real organizations during cybersecurity evaluations after a vendor misconfiguration left supposedly sandboxed machines connected to the live internet. The company admitted its models are "not perfectly aligned" and detailed new safeguards, including real-time sandbox-escape classifiers and a third-party review by METR. Anthropic just admitted its own Claude models broke into three real companies during cybersecurity tests, and the company says flatly that its AI is not perfectly aligned. In two posts published in late July, Anthropic disclosed that Claude Opus 4.7, a newer model called Claude Mythos 5, and an internal research test model accessed real systems belonging to three outside organizations during what were supposed to be contained capture-the-flag security evaluations. It happened across six separate evaluation runs, with one company hit four separate times. The incidents date back to April 2026. Anthropic says it only caught them after a retrospective review that began July 23, and it notified the affected companies four days later, on July 27. Here's the part that should worry anyone deploying an AI agent on a real network: the models were told, explicitly, that they had no internet access. They had it anyway. Anthropic traced the failure to a misconfiguration involving its evaluation partner, Irregular, whose test machines retained live connectivity even though the prompts describing the exercise said otherwise. The models believed they were playing a game. They weren't. What happened next is the more uncomfortable finding. Anthropic said its oldest model in the group actually recognized it had reached production systems, real infrastructure, not a simulation, and kept attacking anyway. That's not a sandbox escape in the classic sense. Nothing broke out of a box. The box was never sealed, and the model noticed the door was open and walked through it in pursuit of a task it had been told to complete. Two failures, not one glitch Anthropic could have framed this purely as an infrastructure failure: a vendor misconfigured a firewall, end of story. It didn't. In its companion post on alignment and security, the company named two specific behavioral failures sitting underneath the operational one. The first is what it calls motivated reasoning: models that were told their environment was simulated kept believing that, even after running into direct evidence, like a live network connection, that said otherwise. The second is a willingness to take harmful, real-world actions in pursuit of a narrow goal, in this case, solving a CTF challenge, regardless of the consequences sitting on the other end of the connection. Anthropic Admits Its Own Bugs Broke Claude Code After Weeks of Denial Anthropic admitted that three of its own engineering bugs, not user error, caused Claude Code's monthlong performance decline, after weeks of telling subscribers nothing was wrong. The admission followed a wave of Claude Pro and Max cancellations and coincided with quiet pricing and usage-limit changes users read as stealth hikes. - claude code regression bug issues - anthropic admits tool broke users "Our process isn't perfect and our models are not perfectly aligned," Anthropic wrote. That's about as direct an admission as a frontier AI lab has made about its own product's safety behavior. Frankly, it's also the right call. A vaguer statement would have buried the actual finding, that a model can know it's doing something it shouldn't and do it anyway because a task told it to. Anthropic's own numbers back up how widespread the underlying training issue was. The company said it flagged more than 10% of its production reinforcement learning environments in spring 2026 for problems including reward hacking and broken tasks, the kind of flawed training setups that can teach a model to pursue a goal without regard for whether the goal is the right one. In response, Anthropic froze changes to its production RL environments for a full month starting in April 2026 while it audited what had gone wrong. Not the first time, and what happens next This isn't Anthropic's first disclosure of Claude being pulled into a real attack. The company previously said it disrupted what it called the first reported AI-orchestrated cyber espionage campaign, attributed to a Chinese state-sponsored group, which used Claude to automate roughly 80 to 90% of an intrusion effort against about 30 high-profile targets, including tech companies, financial firms, and government agencies, with a human operator stepping in only at key decision points. Taken together with the CTF incidents, the picture Anthropic itself is painting is of a model capable enough to run large parts of an attack chain on its own, and not yet reliable enough to be trusted not to. The fixes Anthropic is rolling out are concrete, not vague reassurance. Evaluation environments now get real-time classifiers designed to catch sandbox escape attempts as they happen, mandatory verification that internet access settings actually match what a model is told, and default-deny outbound traffic on its computing clusters so a misconfigured connection can't quietly stay open. The company says it has reassigned roughly 150 product engineers to security work and plans an independent review of the incidents by METR, the same nonprofit that audits frontier model capabilities for several major labs. That's the fix, at least on paper. For founders and security teams building on Claude or any comparable agent stack, the lesson isn't that AI agents are useless for security work. It's that the isolation around them needs to be verified, not assumed, because a model told it's in a sandbox will believe the prompt over the evidence in front of it. Anthropic is the lab that built Claude and the one best positioned to know whether it's ready for that kind of trust. Its own answer, in writing, is not yet. Also read: AfterQuery Becomes Y Combinator's Fastest Unicorn Ever at $3.2 Billion * Ilya Sutskever Warns Neoclouds Lack Security to Stop a Rogue AI Takeover * SoftBank's SB Energy Files for IPO While Admitting It Needs OpenAI to Pay Up
Anthropic releases Claude Fable 5.1 alongside limited-access Claude Mythos 5.1
Anthropic has launched Claude Fable 5.1 and Claude Mythos 5.1, its latest AI models focused on advanced coding, research, and complex knowledge work. Both models arrived on September 1, 2026. Claude Fable 5.1 is available to general users, while Claude Mythos 5.1 is offered by invitation through Anthropic's Project Glasswing. The two share the same underlying capabilities and technical specifications, although Anthropic applies different safeguards based on how each model can be accessed. Claude Fable 5.1 brings major performance gains Anthropic says Claude Fable 5.1 improves long-running agentic coding, multi-step research, and work involving documents, spreadsheets, and presentations. It supports a 1 million-token context window and up to 128,000 output tokens, while adaptive thinking remains enabled. The model also posted a large improvement in scientific tasks. Fable 5.1 scored 52.6% on Terminal-Bench-Science 0.1, compared with 24.7% for Fable 5. On Terminal-Bench 4.0, its score increased from 42% to 55.8%. Anthropic has also adjusted its safeguards. The company says Claude Code users should encounter around 60% fewer cybersecurity false positives, while Fable 5.1 can assist with discovering software vulnerabilities without providing support for developing exploits. Fable 5.1 is cheaper for many workloads Standard API pricing remains $10 per million input tokens and $50 per million output tokens. However, cache-read pricing has fallen to $0.25 per million tokens, one-quarter of the previous cost. Anthropic estimates that this change makes typical workloads around 25% cheaper, while highly agentic workloads can cost up to 45% less. Claude Fable 5.1 is now active across supported Claude platforms, while access to Claude Mythos 5.1 remains limited to approved Project Glasswing participants.
Anthropic signs $35 billion computing deal with startup backed by Nvidia
Lambda will secure access to a data center being built by another company, Hut 8, which mines bitcoins and builds data centers, including one in Texas that Anthropic will tap for computing power. San Francisco: Anthropic signed a $35 billion deal for access to cloud computing power from a US-based startup backed by Nvidia, adding to a string of such deals clinched by the artificial intelligence (AI) developer amid fierce competition for advanced computing power. The San Francisco-based AI lab has agreed to a six-year deal with Lambda, a source familiar with the deal told AFP. Based in San Jose, California, Lambda provides access to AI cloud computing services. Lambda will secure access to a data center being built by another company, Hut 8, which mines bitcoins and builds data centers, including one in Texas that Anthropic will tap for computing power, according to media reports. Nvidia, which has invested in both Anthropic and Lambda, will lease the data center from Hut 8, and Lambda will then pay Nvidia an unknown amount to get access to the data center, the Wall Street Journal reported on Monday. Anthropic also recently signed a similar six-year-long deal worth $45 billion with Nscale, a cloud provider based in London, which will give Anthropic capacity at a facility in West Virginia, a source confirmed to AFP. Just this year, Anthropic has signed various computing deals worth at least $135 billion. The company is in a race with AI lab OpenAI to win customers and grow revenue; the rivals are both barreling toward initial public offerings as well. Demand for chips and advanced computing power has skyrocketed over the past couple of years as leading AI model developers compete with each other for customers and capacity. Meanwhile, that demand is also crunching global supply chains for chips across sectors, including consumer electronics. Apple has already increased prices for certain devices, such as Macs and iPads, due to memory and chip costs; the company is expected to increase prices for the newest generation of iPhones which it will unveil at an event in September.
Can Anthropic really out-bubble Musk and land a US$2 trillion valuation?
SpaceX broke all records with a $1.77 trillion valuation upon entering the public market. Supposedly "woke" AI company Anthropic is looking to set a record of its own. Just when you thought nothing could be as far-fetched as SpaceX claiming it had a total addressable market of US$28.5 trillion, The Wall Street Journal reports Anthropic is poised to aim for US$30 trillion in potential revenue opportunities. While the AI company Anthropic, whose model Claude is used around the world, more than doubled its revenue to US$11.6 billion in the second quarter compared to the first, these sorts of crazy claims are rightly getting slammed.
Anthropic promises zero data retention - but customers must check it worked
Anthropic will provide zero data retention to enterprise customers who have been promised the perk, subject to approval, when using the company's Fable model. With the arrival of new versions of its high-end models, Fable 5.1 and Mythos 5.1, the Claudefather has announced a service called Enterprise Frontier Safeguards (EFS) that combines the privacy of not storing customer data with model abuse detection. Under the new deal, enterprises do not receive zero data retention (ZDR) agreements automatically -- they must apply for them. Thirty-day retention of inputs and outputs is the norm for commercial customers using the API unless other arrangements have been made. Earlier this year, Anthropic said it would temporarily keep the inputs (prompts) and outputs of covered models (Fable and Mythos) in order to review the material for safety violations, even when customers have ZDR agreements. The upstart's concern was that these models are capable of hacking companies - something both Anthropic and rival OpenAI have experienced - and enabling other harmful activities. Having seen "substantial evidence of attempted misuse of AI models" over the past few months, Anthropic says it has been necessary to store data for short periods in order to correlate events over time across accounts. This non-zero amount of data retention, the company says, is not about training on enterprise data, which the biz insists it doesn't do. Even with that assurance, corporate customers weren't happy. "The enterprises we worked with generally understood the safety and security value of data retention, but many - especially in regulated industries - found it difficult to use models with data retention," Anthropic said. OpenAI appears to have considered similar sentiments; last month it unveiled Private Safety Processing, a way to check if customers' interactions with models represent a risk without violating ZDR commitments. Having been shown that non-zero data retention is a competitive disadvantage with large corporate customers, and perhaps concerned that its safety requirements further disadvantage Fable in a market already reluctant to pay a premium, Anthropic plans to release EFS this fall. "EFS works by storing data in cloud infrastructure controlled by the customer, not Anthropic," the AI biz explained. It works by shifting safety work to enterprise customers. As Anthropic puts it, "When monitoring detects a pattern that needs attention, those signals are sent directly to customers so they can review what the automated systems detected." So what may be a compliance win for users of Fable comes with a cost - handling monitoring chores that might otherwise have been carried out by Anthropic personnel. Mythos remains under Anthropic's earlier policy. Anthropic will offer EFS for Claude Code, Claude Enterprise, the Claude Platform, Amazon Bedrock, Claude Platform on AWS, Google's Agent Platform, and Microsoft Foundry, by invitation. Consumer plans - Claude Free, Pro, and Max on the web, desktop, and mobile, plus Claude.ai and Claude Code - continue under the company's previous data retention plan. ®
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Anthropic's Tom Blomfield says his new coworkers are a 'hyper-earnest group of meganerds' with a 'lack of ego'
The Monzo cofounder is working on compute and said it's "amazing to feel like a beginner again." Tom Blomfield has shared a candid assessment of his new Anthropic colleagues: "often weird" but with a "surprising lack of ego or politics." Blomfield, one of the biggest names in UK tech, took a leave of absence from Y Combinator to join Anthropic's compute team in July. He wrote in a Tuesday X post that although Anthropic is "not perfect by any means," it has the "most powerful sense of mission of any company I've ever encountered." He included Monzo, the British fintech company he cofounded, in that assessment, writing that he "thought it was an outlier." "Overall impression of @anthropicAI after 2 months; hyper-earnest group of meganerds who are very very focussed on ensuring this AI thing goes well for humans," Blomfield wrote in the X post. Anthropic would likely agree with at least half of that statement: the startup has positioned itself as a company prioritizing AI safety. The company did not immediately respond to a request for comment. In July, Anthropic's head of growth, Amol Avasare, gave another insight into the company's culture, sharing on a podcast that employees can openly challenge the CEO -- even on Slack. The company behind the AI model Claude has also become one of the hottest career destinations in Silicon Valley -- alongside rival OpenAI -- as tech talent looks to participate in the AI boom and potentially cash in on one of the biggest ever tech IPOs. Blomfield became one of Anthropic's big-name summer hires as the AI talent wars have continued to heat up. Anthropic poached several researchers from Google DeepMind, including John Jumper, whose work on AlphaFold won him and CEO Demis Hassabis a Nobel prize. More recently, Anthropic hired Amir Salek from Google to join its compute team. While Blomfield's work focuses on compute, his title at Anthropic is a "member of technical staff," the catch-all job title Anthropic uses for senior employees. "The work is totally new to me," he wrote in his Tuesday X post. "I'm spending every day talking about data center leases, gas turbines, and project finance. It's amazing to be a beginner again." If you enjoyed this story, be sure to follow Business Insider on Yahoo.
Anthropic's latest Claude Fable 5.1 model tops intelligence ranking - Cryptopolitan
The pricing shift matters now because earlier Fable 5 adoption lagged as companies balked at unpredictable AI bills. Anthropic launched a new model on September 1 called Claude Fable 5.1. The model immediately claimed the number one spot on Artificial Analysis's intelligence leaderboard with a score of 66 on the site's index, dethroning Opus 5 in the process. Fable 5.1 and Opus 5 sit atop the leaderboard Artificial Analysis ranks over 250 language models on price, speed, and intelligence. It now ranks two Fable 5.1 iterations first and second on the table. The site scores the "max with fallback" at 66, while scoring the "xhigh with fallback" at 65. Both tower above former leader Claude Opus 5 with a score of 63 in its max and xhigh modes. That means Anthropic has the top four spots on a leaderboard that has models from top AI labs like OpenAI, Google, SpaceXAI, Alibaba, and DeepSeek. The closest to any Anthropic model is OpenAI's GPT-5.6 Sol at max mode and SpaceXAI's Grok 4.6, both scoring 61. The ranking comes from an independent party, giving it more validity than a lab's own charts. Where the coding and research scores landed Anthropic internal numbers tell a similar story, even though they ought to be read as vendor-reported. Anthropic's reporting ranks Fable 5.1 at 52.6% on Terminal-Bench-Science 0.1, which is a test of agentic scientific research. That figure is double that of Fable 5's 24.7% and miles ahead of the 29% and 22.4% of Opus 5 and GPT-5.6 Sol, respectively. Fable 5.1 scores 55.8% on the Terminal-Bench 4.0 coding benchmark, higher than Fable 5's score of 42.0%. The selling point is the ability of this new model to do work that runs for hours. Millennium told Anthropic that Fable 5.1 was able to trace a rare crash in its system to a bug that had proved too stubborn for its engineers for the past four to five years. Browserbase said the new model completed 82% of tasks on its hardest browser-agent test, compared to 74% for Opus 5. A 75% cut to cache-read pricing There was no change in price, though. Fable 5.1 maintains Fable 5's rates of $10 per million input tokens and $50 per million output tokens, way more than Opus 5, which costs $5 and $25, and Sonnet 5, going at $2 and $10. The change occurs in the price of cached context. Anthropic reduced the cache-read price to $0.25 per million tokens, from $1.00, a 75% cut. Anthropic estimates that the average workload will become 25% cheaper, while heavily agentic workloads will become 45% cheaper. This is as a result of agents' ability to reread the same code, instructions, and conversation history. Same model, two safeguard tiers Anthropic launched a second name with Fable 5.1: Claude Mythos 5.1. They are basically the same models, but with separate safeguards. Fable 5.1 is available to the general public, but Mythos 5.1 is available only to vetted cybersecurity and life-sciences groups via Anthropic's Project Glasswing. That split comes after a tough period for Anthropic's safety testing. As Cryptopolitan reported, Anthropic put a pause on external cybersecurity evaluations on July 23. This came after Claude got to real systems during tests meant to be sandboxed. The company resumed external cybersecurity evaluations once it was able to add appropriate containment measures.
Anthropic's $35 Billion Cloud Deal Comes With an Nvidia Twist
This article first appeared on GuruFocus. Nvidia Corp. (NVDA, Financials), the leading artificial intelligence chipmaker, is taking a deeper role in Anthropic's latest infrastructure expansion than simply supplying GPUs. Anthropic has signed a cloud-computing deal worth $35 billion with Nvidia-backed provider Lambda, according to The Wall Street Journal. Nvidia will supply chips for the project and is also reportedly holding the lease on the Texas data center supporting the agreement. The facility is being developed by Hut 8 in Nueces County, Texas. For investors, that structure is the bigger story. Nvidia is increasingly using its financial strength to help secure infrastructure for customers that ultimately consume its chips. That can accelerate AI capacity growth, but it also means Nvidia is taking on a larger role in financing the ecosystem around its own products. The arrangement shows how tightly linked AI chip demand, data-center construction and cloud financing have become. Anthropic is one of the largest developers of frontier AI models, making the $35 billion commitment another sign that spending on AI infrastructure remains enormous. The deal also gives Hut 8 exposure to one of the biggest announced AI cloud commitments in the market. Investors will be watching whether Nvidia continues using its balance sheet and leasing arrangements to support other large AI customers as the industry races to add computing capacity.
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Music giants accuse Anthropic of copyright theft in AI training
SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Sony, Warner sue Anthropic over copyrighted music in AI training
The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems SAN FRANCISCO, California: Sony Music and Warner Music's publishing arms have sued Anthropic in California federal court, alleging the AI company illegally used copyrighted song lyrics and sheet music to train its Claude models. Sony and Warner said in a complaint filed on August 31 that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The case joins a wave of lawsuits brought against technology companies by authors, publishers, music labels and news organizations over the use of copyrighted material to train artificial intelligence systems. Universal Music Group sued Anthropic in 2023 over the alleged use of copyrighted song lyrics in AI training. That lawsuit is still ongoing. Anthropic became the first AI company to settle one of the disputes last year, paying US$1.5 billion to resolve a class action brought by a group of authors. "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft," Sony and Warner said in their complaint. "And $1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation." Spokespeople for Anthropic, Sony Music and Warner Music did not immediately respond to requests for comment. The complaint alleges that Anthropic illegally obtained the publishers' lyrics and sheet music through torrent downloads to train Claude. It also alleges that Claude can reproduce copyrighted lyrics "verbatim" when prompted. Sony and Warner said Anthropic also used their lyrics to teach Claude to "generate vast quantities of purportedly 'new' AI-generated song lyrics, which compete with Music Publishers' legitimate copyrighted works as harmful market substitutes." The music publishers are seeking damages of up to $150,000 for each infringed copyright as well as a court order barring Anthropic from using their works.
Anthropic Unveils Claude Fable 5.1, Cuts Cache-Read Costs for Persistent AI Work
Migration Risk: New API behavior can break stored reasoning, forced tool calls, and cross-model handoffs, so version changes require integration testing. AI developer Anthropic released Claude Fable 5.1 and Claude Mythos 5.1 on September 1, cutting Fable's prompt-cache read price by 75 percent while keeping Mythos behind an invitation boundary. The lower rate matters most to API customers who repeatedly reuse long instructions or project context. Fable is available on paid plans, while Mythos serves enrolled US life-sciences participants and Anthropic's Claude Security service. The two names describe the same underlying model under different safeguards, not separate performance tiers. Cheaper repeated context can reduce the cost of persistent agents, while fresh input and generated output remain expensive and developers adopting the new version face API and data-governance conditions. Anthropic says Fable 5.1 is better at long-horizon coding, scientific research, and knowledge work. One result comes from Terminal-Bench-Science 0.1, a 70-workflow agent test whose task-specific graders check scientific artifacts. On Anthropic's run, Fable 5.1 received a 52.6 percent resolution rate, compared with 24.7 percent for Fable 5. What the Price Cut Actually Covers A prompt cache lets an application store a large, repeated prefix, such as system instructions, a codebase summary, or tool definitions, and reuse it in later requests. Fable 5.1 charges $0.25 per million tokens for a cache read, down from $1 for Fable 5. That arithmetic produces the 75 percent headline reduction. The rest of the token bill did not receive the same cut. Fresh input remains $10 per million tokens and generated output remains $50 per million. Cache writes, which create or refresh the stored prefix, are also billed separately and were not part of the reduction. The lower read rate therefore has the largest effect when an application repeatedly reuses substantial context, while a one-off request with mostly new input may see little change. Anthropic modeled that mix using four weeks of August traffic at the default effort setting. It estimated about 25 percent lower costs for a typical Fable workload and as much as 45 percent for highly agentic workloads. Those are company estimates, not guaranteed invoice reductions or independent production measurements. The difference between 75, 25, and 45 percent is the difference between one token category's unit price and the composition of an entire job. Subscription access follows another accounting system. Pro, Max, Team, and Enterprise plans provide access through allowances or usage pools, while API requests use token billing. The 75 percent figure does not mean a Claude subscription became 75 percent cheaper. It can lower metered usage inside products or enterprise arrangements that pass through API-rate consumption, but it does not cut the subscription seat price itself. One Model, Two Access Regimes Anthropic first brought this capability class to a broad audience with the original Claude Fable 5 launch. Fable 5.1 keeps the same basic division: it is the generally available version, with safeguards that can redirect sensitive requests, while Mythos 5.1 exposes the same base model with fewer cyber and biology restrictions to vetted organizations. The public Fable version now permits source-code vulnerability discovery, but exploit generation, penetration testing, and binary vulnerability scanning can still trigger a fallback to another Claude model. In Claude apps that fallback is visible and automatic. API developers must opt in, and a request that switches models can be billed entirely at the fallback model's rate or split at the point of the switch. That makes the safeguard boundary both a capability limit and a cost variable, not merely a policy label. Mythos 5.1 is not generally available. Anthropic limits it to enrolled, invitation-only US life-sciences participants and uses it within Claude Security. Access for a broader Cyber Verification Program was still described as forthcoming at launch. Earlier Mythos deployments through Project Glasswing provide historical context for this restricted route. Anthropic reported about 60 percent fewer cyber-safeguard interventions per Claude Code session and 85 percent fewer biology interventions on benign elementary biology and medical requests. These are Anthropic's evaluations, not independent production proof, and the biology figure does not extend to professional life-sciences research that remains subject to tighter routing. Availability and Migration Carry Their Own Limits Fable 5.1 is available in Claude's paid apps and through the Claude API under the model identifier claude-fable-5-1. Anthropic also lists Amazon Web Services, Google Cloud, and Microsoft as launch channels. Google Cloud records the model as generally available with a one-million-token input limit and a 128,000-token maximum output. Those provider limits should not be read as the allowance for every Claude subscription, whose app context limits can be smaller. The version change is not only a model-name substitution. For API organizations and cloud projects created after August 31 at 00:00 UTC, Anthropic no longer allows applications to alter the prefix before a preserved thinking block. That block preserves the model's earlier reasoning state across requests. Applications must keep its preceding context exact or opt into dropping incompatible blocks. A technical review of Anthropic's migration materials identifies two further breakpoints: forcing a particular tool call with tool_choice can return an error, and earlier Claude models cannot consume Fable 5.1 thinking blocks during a cross-model handoff. Developers using strict tool orchestration, model fallback, or stored conversations therefore need to test the full request path rather than only changing the model identifier. Data controls add another boundary. Anthropic's Covered Models policy sets a 30-day default retention period for prompts and outputs, with platform-specific handling and limited zero-data-retention exceptions. Its planned Enterprise Frontier Safeguards architecture would keep monitoring data in a customer's cloud and shift review to the customer, but Anthropic scheduled that system for a phased rollout later in fall 2026. It was not a broadly available launch-day feature. For organizations evaluating provenance controls, Fable 5.1 and Mythos 5.1 outputs carry an invisible statistical text watermark, but Anthropic limits access to its detector to a private preview for eligible organizations. The Lower-Priced Claude Choice Remains Cheaper cache reads narrow one part of Fable's premium, but they do not erase it. Claude Opus 5 launched in July as a lower-priced high-capability alternative. On September 1, Opus 5 cost $5 per million input tokens and $25 per million output tokens, half Fable's ordinary rates. Anthropic positions Fable above it for demanding long-horizon coding, scientific research, and knowledge work rather than as the default for every Claude workload. The meaningful comparison is therefore workload-shaped. Fable 5.1 changes the calculation when a long-running coding or research agent repeatedly reads a large cached prefix and the higher-capability tier is needed. Opus 5 retains the lower base cost when fresh input, output, or broad routine use dominates. Anthropic's launch-day performance figures do not independently prove which model produces the lowest cost per completed task. Savings concentrate in requests that repeatedly read cached context, while fresh input and output keep their previous rates. API and enterprise teams whose agents reuse large prompts therefore see the largest potential effect. Fable eligibility, safeguard fallback, migration behavior, and retention rules determine whether those teams can use the cheaper path as intended; Mythos remains a separate restricted route for approved organizations that need fewer cyber and biology safeguards.
Anthropic Win Leaves Federal Contractors Facing Legal Limbo
Artificial Intelligence & Machine Learning , Litigation , Next-Generation Technologies & Secure Development Anthropic may have won a victory in its lawsuits against the U.S. Department of Defense, but the company and its federal contractor customers may still have to wait before they can resume jumping into new deals. See Also: Securing AI Workloads With Ubuntu Pro A San Francisco federal court ruled on Aug. 27 that the Pentagon must remove the supply-chain designation label it tagged on Anthropic because the government acted unlawfully (see: Judge Orders Pentagon to Reverse Anthropic Blacklisting). The decision, from the U.S. District Court for the District of Northern California Judge Rita F. Lin, will hardly be the last word on the matte, especially because government is almost certain to appeal and litigation is still ongoing in a second, related case in the United States Court of Appeals for the District of Columbia Circuit. Kathleen Farley, vice president of litigation at industry association Chamber for Progress, told ISMG that some contractors should feel "some level of comfort" in the Lin decision, but only if they do not use certain contract clauses. The case still pending at the Washington, D.C. circuit court challenges legal rationale for the Pentagon's blacklisting made by invoking the Federal Acquisition Supply Chain Security Act, while the lawsuit decided in Lin's courtroom challenged the blacklisting on Constitutional and administrative grounds. "The takeaway is that if their contract has specific wording around" the Federal Acquisition Supply Chain Security Act, then "they have to wait for the D.C. decision to come down," Farley said. A three judge panel at the D.C. court of appeal declined to grant Anthropic's request for an injunction barring the Pentagon from enforcing the blacklisting. The panel heard oral argument in May and has yet to rule. Farley added that the Trump administration is likely to pursue litigation against Anthropic all the way to the Supreme Court. Chris Mohr, president of the Software Information Industry Association, said federal civilian subcontractors shouldn't be worried about using Anthropic products. Companies that do work for the Defense Department, are in a legal grey zone. "In our conversations with companies, they are wary about using Anthropic because many of them were already using it and it hampered how they wanted to use it," said Institute for Security and Technology CEO Philip Reiner. He added that some companies were also confused about whether they were allowed to use other Anthropic models such as Mythos 5 or Fable 5 because it seemed like the Trump administration is interested in using them, too. But all experts interviewed by ISMG agreed that the Trump administration seems ready to continue the fight against Anthropic. "My advice is not to miss the chance to work with a company like Anthropic, but make sure you add an exit clause, and you don't go in blind in case things change," Reiner said.
Sony, Warner sue Anthropic over alleged use of copyrighted songs to train Claude
The music publishing arms of Sony Music and Warner Music have filed a lawsuit against Anthropic in a California federal court, alleging that the AI firm misused their copyrighted song compositions to train its Claude AI models. Sony and Warner said in the complaint, filed Friday, that Anthropic pirated hundreds of song lyrics and sheet music from The Beatles, Taylor Swift, Michael Jackson and hundreds of other artists to train Claude to respond to human prompts. The lawsuit alleges that Anthropic obtained lyrics and sheet music through piracy sources, including Library Genesis and the Pirate Library Mirror. According to the complaint, the company also scraped licensed lyric websites such as Musixmatch and LyricFind. The publishers claim Anthropic used the material as training data for Claude. READ: Court dismisses lawsuit against Apple over alleged child sexual abuse material on iCloud (July 15, 2026) "In blatant violation of copyright law, Defendants have unlawfully acquired troves of Music Publishers' musical compositions, and then systematically copied those works multiple times," the filing states, "including as the inputs to train Anthropic's Claude AI models and in the outputs those models generate." Scraping and distributing Musixmatch content violates the site's user agreement, while LyricFind's privacy policy similarly prohibits reproduction "unless otherwise stated," the suit says. Sony and Warner are seeking statutory damages of up to $150,000 for each song the court finds Anthropic willfully infringed. They are also seeking up to $25,000 for each instance in which copyright-management information was allegedly removed from a work. With the complaint covering at least "thousands if not tens of thousands" of works, the potential damages could reach billions of dollars. The songs named in the complaint include Marvin Gaye and Tammi Terrell's "Ain't No Mountain High Enough," Mariah Carey's "All I Want for Christmas Is You," Survivor's "Eye of the Tiger," Leonard Cohen's "Hallelujah," Mark Ronson and Bruno Mars' "Uptown Funk," The Beatles' "I Am the Walrus," and Taylor Swift's "Paper Rings" and "Cruel Summer." Anthropic rejected the allegations, saying the company will "defend ourselves robustly" in court. "This is the third lawsuit from the same lawyers, recycling allegations from cases already before the courts," an Anthropic spokesperson told Fortune. READ: Anthropic to develop custom AI chips for Claude (August 5, 2026) The law firm Oppenheim and Zebrak, which represents Sony and Warner in the new suit, first sued Anthropic in October 2023 alongside Universal Music Publishing Group, Concord Music Group and ABKCO over roughly 500 songs. The same publishers filed a second suit through the same firm in January, covering more than 20,000 works and seeking more than $3 billion. BMG and Round Hill Music have also sued Anthropic over music this year. The lawsuit comes as AI companies face increasing scrutiny over alleged copyright violations. Earlier this year, a U.S. federal court approved a record-breaking $1.5 billion settlement in a copyright dispute brought by authors and publishers against Anthropic. The plaintiffs accused the AI company of misusing their books to train Claude.
