Anthropic has suspended its Claude Fable 5 and Mythos 5 AI models after US authorities raised security concerns just days after their public release, according to a BBC report.
Suspension Details and Compliance
The company stated: "The net effect of this order is that we must abruptly disable Fable 5 and Mythos 5 for all our customers to ensure compliance," as reported by the BBC. Anthropic said US national security authorities had not identified specific concerns. The company's understanding is that the government believes it has become aware of a method of bypassing, or 'jailbreaking' Fable 5. Jailbreaking is a process of getting past software restrictions designed to protect a cyber network, allowing hackers to access sensitive information or unblock features. Anthropic reviewed a demonstration of the technique and found it identified a small number of previously known, minor vulnerabilities, stating: "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."
Security Concerns and Industry Reactions
Ahead of the release of Claude Fable 5, the company touted various safeguards it had implemented to prevent cyber hacking. Finance, technology and government leaders had expressed concerns about its public rollout, following a private release in April for previewing and testing vulnerabilities. Anthropic enabled pre-release access for a handful of organisations because the tool was so intelligent that it could be dangerous due to its ability to exploit or hack computer systems. The company self-proclaimed it was "too powerful to release" before Claude Fable 5 was publicly released, which some critics questioned as inflated hype.
Gina Neff, Professor of Responsible AI at Queen Mary University London, told the BBC that the decision to restrict access could limit development and safe testing of these AI systems and restrict collaboration with governments worldwide. "We're in uncharted territory at this point," she said. She noted that the UK government's AI Security Institute found in its tests that the model could exploit defences and systems 73% of the time, calling it "a step change in capability in cyber security."
Supply Chain Risk Designation
Anthropic has found itself in the crosshairs of the Trump administration recently. Donald Trump has criticised the company publicly, and then-US Defence Secretary Pete Hegseth labelled it a "supply chain risk" – the first time a US company has ever publicly received such a designation. The designation means a tool or service is not secure enough for government use. The BBC has approached the US Department of Commerce for comment. Anthropic and the Trump administration are involved in a separate ongoing lawsuit over an order to stop government agencies using the company's AI tools.
European Union Response and Technological Sovereignty
The European Union, which gained access to Mythos earlier in June after weeks of talks, said the latest development further underlined "Europe's need for technological sovereignty." Thomas Regnier, a spokesman for the European Commission, told the BBC: "We take note of Anthropic's statement and are assessing." The European Commission this month unveiled measures to slash the 27-nation bloc's dependence on America and Asia for key technologies, including AI. Claude Fable 5 is a version of Anthropic's Claude Mythos, an AI program rivalling competitors OpenAI's ChatGPT and Google's Gemini.
Implications for International Trade and Business
For trade executives and import/export managers, the suspension signals heightened regulatory scrutiny on cross-border AI services. The supply chain risk designation imposed by the US government could restrict Anthropic's ability to sell its AI tools to government agencies and potentially to foreign entities subject to US export controls. Companies relying on Anthropic's models for business operations—such as customs analysis, supply chain optimization, or trade data processing—may need to seek alternative AI providers or prepare for compliance audits. The European Union's push for technological sovereignty could accelerate local AI development and reduce reliance on US-based models, affecting global technology trade patterns. Customs brokers and trade policy analysts should monitor whether the US expands supply chain risk designations to other AI providers, which could reshape the digital trade landscape.
What to watch: The outcome of Anthropic's lawsuit with the Trump administration and any further guidance from the US Department of Commerce on supply chain risk designations for AI companies. The European Commission's assessment of the suspension may lead to new regulatory measures affecting AI imports and cross-border data flows.
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