Satya Nadella: "If you use Fable, when it refuses for any random thing, it just is like, when…"

Microsoft CEO Satya Nadella, during a private gathering with engineers developing the company’s Copilot assistant, criticized Anthropic’s Fable 5 model, according to a CNBC report. He told the team that the AI system’s frequent blocking of user requests feels overly censored, questioning whether a creative tool should operate with such editorial control. Nadella also weighed in on industry consolidation, saying the AI field should not be limited to just a few firms with enormous financial resources. The critique comes shortly after Anthropic reinstated Fable following a suspension tied to a U.S. government export directive; the updated model now rejects a slightly higher percentage of harmless requests. Microsoft has invested roughly $5 billion in Anthropic, and Anthropic has committed $30 billion to Microsoft’s Azure cloud. The tech giant also recently launched Copilot Cowork, a workplace product built on Anthropic’s technology. Microsoft shares fell 2% in early trading Friday.