Follow us on Google for more Moneywise news
Add us on GoogleAnthropic’s newest AI models were supposed to showcase the company’s technological lead ahead of a highly anticipated IPO. Instead, they’ve been pulled offline worldwide after the Trump administration imposed export controls over security concerns.
Now, reports suggest that one of the people who helped raise those concerns was none other than Amazon CEO Andy Jassy. Amazon (NYSE: AMZN) has invested billions of dollars into Anthropic and stands to benefit from its success.
According to reporting from The Wall Street Journal, later echoed by Reuters, TechCrunch and The Information, Jassy told Treasury Secretary Scott Bessent and other officials that Amazon researchers had used Anthropic’s new Fable 5 model to obtain information that could potentially be used in cyberattacks. Shortly afterward, the government moved to restrict access to Fable 5 and Anthropic’s even more powerful Mythos 5 model.
Thanks for subscribing!
The money news that actually matters.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
Anthropic strongly disputes the characterization.
What’s known about Amazon’s role
Amazon has not confirmed the details of any conversations between Jassy and government officials, though Reuters and TechCrunch reported that a company spokesperson acknowledged that governments sometimes seek Amazon’s input on potential security risks.
The situation is unusual because Amazon is one of Anthropic’s biggest backers. The e-commerce and cloud giant has invested at least $8 billion in the startup and has committed to invest as much as $25 billion overall. Amazon’s stake was recently estimated to be worth more than $74 billion on paper following Anthropic’s meteoric rise in valuation.
The dispute also comes just days after Anthropic CEO Dario Amodei publicly warned that AI development may be advancing too quickly and called for stronger safeguards around increasingly capable systems.
Administration officials have argued that Anthropic failed to adequately address concerns after researchers demonstrated ways to bypass the models’ guardrails. David Sacks, who co-chairs the President’s Council of Advisors on Science and Technology, said the government asked Anthropic to fix or remove the models and that the company declined. Anthropic contests that account.
Amazon did not respond to Moneywise’s request for comment on this matter.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Could this affect Anthropic’s IPO?
Potentially. Anthropic confidentially filed for a U.S. IPO earlier this month and is widely viewed as one of the most important public offerings in years. Reuters reported that the company recently reached a $965 billion private-market valuation after raising $65 billion, surpassing OpenAI’s most recent valuation.
Whether Fable 5 and Mythos 5 ultimately return, the situation highlights a new risk: regulatory intervention. If the U.S. government can effectively force a frontier AI company to disable flagship models on short notice, investors may demand greater clarity around how AI firms manage security concerns and government relationships.
At the same time, Anthropic’s underlying business remains formidable. The company reported a run-rate revenue figure exceeding $47 billion earlier this year and is still considered one of the frontrunners in the race to commercialize advanced AI.
Whether this controversy becomes a temporary speed bump or a lasting concern for prospective shareholders may depend on how quickly Anthropic can resolve its standoff with Washington and restore access to its most advanced models.
In response to Moneywise’s request for comment, Anthropic pointed to a public statement arguing that the alleged jailbreak exposed only “previously known, minor vulnerabilities” and that similar capabilities are already available in competing AI models.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Clay Halton is a Contributing Editor at Moneywise, covering a wide range of consumer-focused financial stories. He has over eight years of experience in digital publishing and has written and edited for outlets including PCMag and Investopedia.
