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Dear friends,
Over the last two weeks, both the U.S. Government and Anthropic took significant actions that demonstrated their power to control access to AI by restricting what others can do with frontier models. This has been one of those moments that, once seen, will be hard to unsee, and it is significantly accelerating many businesses’ and nation states’ efforts to ensure reliable access to AI that no one else can terminate.
Anthropic first released Claude Fable 5, a version of its Mythos model with additional guardrails, including some restrictions that seem well justified on safety grounds (such as limitations on applying it to hacking, bioweapons, and so forth). However, it also restricted developers’ ability to use it to build competing LLM technology. This move was concerning, given that the whole AI community, including Anthropic, has benefitted tremendously from open research — indeed, the AI revolution was kicked off by my former team (Google Brain) freely publishing the Transformers paper!
Imagine if Microsoft’s terms of use barred anyone from using their tools to build competitive software, or if Google barred using it to search for information to work on competing search engines. Anthropic’s argument that it was unsafe for others to be able to make advances in AI also rang hollow. Initially, Anthropic silently degraded Fable 5’s performance for users detected to be working on LLM research through invisible interventions that weakened the model’s outputs without notifying the user. After significant backlash, it walked back this decision and decided to be transparent when it did this, but it still refuses to use its latest capabilities to help AI researchers.
This move represents a raw demonstration of power by Anthropic. It has used “safety” arguments to hinder potential competitors. Platforms succeed when they are viewed as stable, reliable partners that one can build on. The sudden rule changes by Anthropic (including a mandatory 30 day data retention policy for Fable usage) have made developers wonder about the stability of building on any one proprietary LLM provider, not just Anthropic.
The U.S. Government then shortly followed with an even greater demonstration of power. It used the Commerce Department’s authority to regulate technologies that may be national security threats to restrict exports of Mythos and Fable, requiring a license for use by any foreign national, whether inside or outside of the U.S., including employees of Anthropic. This led Anthropic to disable access to Fable to all users worldwide.
Sam Altman pointed out, referring to Anthropic, “It is clearly incredible marketing to say, ‘We have built a bomb, we are about to drop it on your head. We will sell you a bomb shelter for $100 million.’” But when one engages in this type of fear-based marketing, it increases the odds that the U.S. Government will agree with you and slap export controls on the bomb you say you have built.
To be clear, I don't think Anthropic has built anything like a bomb, and I don't think export controls on Fable are appropriate.
However, following the U.S. Government making this move, many nations, including U.S. allies, saw how the U.S. can suddenly yank their access to AI models. In many capitals around the world, this has spurred discussions on AI sovereignty and how others can ensure uninterrupted access to this critical technology.
For decades, many nations were comfortable having many parts of their supply chain rely on the U.S., China, and other major producers. Once a nation issues a threat, or takes action, to limit other nations’ access, other nations will rationally try to secure alternatives. For decades, semiconductor manufacturing in China made slow progress; once the U.S. moved to limit China’s access, China’s efforts kicked into high gear. Similarly, once China threatened U.S. access to rare earth minerals, U.S. efforts to secure alternatives accelerated. Now that it has become crystal clear that private U.S. companies and the U.S. government can limit, in short order, other nations’ access to frontier AI models, the incentive of others to invest more in alternatives like open source grows significantly. Of course, training frontier models is not easy, so it remains to be seen how successful they are, but we have crossed the rubicon.
Satya Nadella wrote an essay about the importance of building a healthy ecosystem on top of frontier AI technology. I heartily agree with him, and hope this week’s events will ultimately prove to be constructive steps toward this.
I hope we can build a more free, more open world, where research is freely shared, and laws and societal norms shape a level playing field that allows everyone to make progress. A silver lining of the events of these past two weeks is now that everyone better realizes key points of instability of the current system, we can all work to create a more stable foundation.
Keep building! Andrew
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News
Claude’s Benchmark Problems
What’s new: Multiple independent organizations reported that they could not fully evaluate Claude Fable 5, the safeguarded, publicly available version of Anthropic’s Claude Mythos 5. In all cases, the model refused some test prompts or routed them to the less capable Claude Opus 4.8. Some evaluators withheld proprietary prompts because of Anthropic’s new data retention policy.
How Claude Fable 5 works: Anthropic’s classifiers screened each prompt before it reached Claude Fable 5. A flagged prompt was either answered by a weaker model in its place or refused outright. To use Claude Fable 5, all users must accept Anthropic retaining prompts and outputs for 30 days.
How evaluators scored the model: Each chose between a “pure” evaluation of Claude Fable 5, to try to measure its capabilities without influence from Claude Opus 4.8, and a “practical” evaluation of the model, including refusals and fallbacks. Claude Mythos 5 was not publicly released and so could not be independently evaluated.
Results: Claude Fable 5 ranks highest on questions it answered without fallback responses. Where Claude Opus 4.8 answered the refused prompts in its place, Claude Fable 5 still ranked at or near the top. Where refusals were scored as failures or the two models were measured apart, its standing dropped significantly.
Why it matters: What Anthropic describes as safety measures have made direct measurement of Claude Fable 5’s capabilities impossible. Measuring the model with its safeguards bypassed would not settle the question. A score taken without the classifiers describes a version of Claude Fable 5 the public can’t reach. And any score taken with classifiers describes a moving target since Anthropic can retune them at any time.
We’re thinking: Benchmarks typically ask how capable a model is. Anthropic’s Claude Fable 5 forces a more material question: How much of that capability do its users actually receive? That gap is what evaluators must now capture, reporting not just a model’s peak score but what a developer can count on in practice. (Anecdotally, Fable is a remarkable coding model, and we look forward to when access to it is restored, or other providers offer models of a similar capability.)
Agentic Tests Beyond the Bug Hunt
SWE-bench, a family of benchmarks that focuses on an LLM’s ability to fix software bugs, is giving way to new tests that evaluate agent software-engineering performance in more challenging ways.
What’s new: Three recently released benchmarks are strong contenders to replace the SWE-bench family (SWE-bench, SWE-Bench Pro, SWE-bench Multilingual, and SWE-bench Verified).
DeepSWE: Developed by Datacurve, DeepSWE is closest in intent to SWE-bench, which has been forked multiple times since LLMs started routinely acing it. DeepSWE presents examples that have been vetted by human experts and minimizes the risk that it might contaminate training datasets by drawing examples from private code bases. It consists of 113 problems in 5 languages. Independent benchmark firm Artificial Analysis recently replaced SWE-Bench Pro with DeepSWE for its Intelligence and Coding Agent indices.
ProgramBench: Developed by researchers at Meta, Stanford, and Harvard, ProgramBench tests how well a model controlled by the SWE-agent harness turns 200 ideas into functional programs without human oversight. The agent, which has access to a console that can execute an existing program, must reproduce the program by producing its inputs and outputs.
ITBench-AA: Developed by IBM and the independent testing lab Artificial Analysis, ITBench-AA updates IBM’s earlier ITBench. It tests the ability of a model controlled by Artificial Analysis’ Stirrup harness to diagnose the technical conditions that lead software systems to make an error, such as running out of memory or changing a configuration file incorrectly.
Why it matters: For years, the best measurements of a model’s general agentic capabilities were SWE-bench and its variants. They were designed primarily to measure the ability of models, and later agents, to fix bugs and solve other basic software engineering problems. Over time, the models became capable enough to achieve nearly 100 percent (possibly because the benchmark problems found their way into the models’ training data). Meanwhile, agents took on more difficult tasks, running longer with less-specific and less-consistent human instructions. DeepSWE, ProgramBench, and ITBench-AA, despite their different approaches, all pose problems that add both complexity and specificity and are unlikely to be in models’ training sets.
We're thinking: It’s heartening to see how far agents have come, and humbling to know how much room they still have to improve.
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Nvidia’s Nemotron Goes Big
Nvidia’s largest-yet model is among the best-performing from a developer based in the U.S. and among the most open developed by anyone.
What’s new: Built on a hybrid transformer-mamba architecture, Nemotron 3 Ultra is a large language model built for long-running agentic tasks. It’s far faster than competitors but its performance is not in the top tier. Nvidia published its weights, training data and recipes, and reinforcement learning environments.
How it works: Nemotron 3 Ultra scales up the design of the smaller Nemotron 3 Super. It interleaves mamba and self-attention layers within a mixture-of-experts structure. Nvidia refined the model via supervised fine-tuning, reinforcement learning across multiple domains and environments, and distillation that involved multiple teachers.
Performance: Independent testing by Artificial Analysis ranked Nemotron 3 Ultra highest in intelligence among open-weights models from U.S. developers, but not as high as DeepSeek V4 Pro or the newly released GLM-5.2. Nemotron 3 Ultra also ran faster than open-weights rivals of similar size.
Behind the news: Shortly before launching Nemotron 3 Ultra, Nvidia shipped a number of other releases that aim to improve agentic performance. It delivered the Vera CPU, its first processor designed for agentic work; introduced RTX Spark, a Windows PC chip for on-device agents; and released Cosmos 3, an open world model that generates training data for robots, self-driving cars, and other agents that act in the world.
Why it matters: The most capable open-weights models for building agents lately have come from China (Kimi K2.6, Qwen3.5, DeepSeek V4, GLM-5.2). Nemotron 3 Ultra puts a U.S. developer back in the mix and gives developers a fast, open, fully documented base to adapt for agentic workloads.
We’re thinking: Nvidia has a good reasons to release strong open-weights models: Avoiding concentration in a small number of proprietary model developers will accelerate adoption and create a healthier ecosystem, which will benefit the market leader in AI semiconductors. Additionally, the more developers build agents on models tuned for Nvidia’s chips, the greater the demand for those chips. We’re glad that Nvidia has incentive to keep pushing the frontier and releasing open models!
Reinforcement Learning With Hints
Reinforcement learning can’t train a model to solve a difficult problem if the model doesn’t discover all the right steps. But giving the model the first few steps can make all the difference.
What’s new: Yuxiao Qu, Amrith Setlur, Virginia Smith, Ruslan Salakhutdinov and Aviral Kumar from Carnegie Mellon University introduced Privileged On-Policy Exploration (POPE), a training method for large language models that pairs the reinforcement learning algorithm GRPO with custom-built datasets. During training on a problem that LLMs frequently don’t solve, such as a difficult math problem, besides giving the model the problem, POPE appends the beginnings of a solution.
How it works: The authors used the customized dataset to fine-tune a pretrained Qwen3-4B-Instruct-2507 via GRPO.
Results: The authors compared Qwen3-4B-Instruct-2507 after fine-tuning via POPE versus typical GRPO and supervised fine-tuning. It consistently outperformed both, and it outperformed supervised fine-tuning by a large margin. They evaluated the results after one try (pass@1) and 16 tries (pass@16).
Yes, but: POPE requires problems with known solutions. In domains where such solutions are expensive to obtain, it inherits that cost.
Why it matters: This work attacked one of the biggest bottlenecks in reinforcement learning: exploration. Current reinforcement learning methods work best with problems that models already can partly solve. When problems are hard, reinforcement learning burns large amounts of computation in exploration, which algorithmically boils down to “keep trying and hope to stumble onto a successful solution.” POPE leads the model onto the right track, after which reinforcement learning can be more effective.
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