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A photo of Amazon CEO Andy Jassy gettyimages.com / picture alliance

Amazon CEO reportedly flagged Anthropic’s new AI models as a security threat to government officials — despite backing the startup with billions

Anthropic’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.

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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.

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.

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Amazon did not respond to Moneywise’s request for comment on this matter.

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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.

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Clay Halton Associate Editor

Clay Halton is an associate editor at Money.ca, 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.

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