Microsoft Restricts Employees From Using Claude Fable 5 Over 30-Day Data Retention

According to Beating, Microsoft has restricted employees from using Claude Fable 5 internally due to data retention concerns with Anthropic's new model. While Microsoft has rolled out Claude Fable 5 to external GitHub Copilot and Foundry customers, the internal version selector does not offer the model to employees.

Microsoft's legal team is evaluating Anthropic's data retention terms. Unlike Claude models provided internally that follow zero data retention (ZDR) rules, Claude Fable 5 retains user prompts and outputs for 30 days. Content flagged as violating usage policies may be stored for up to 2 years, raising concerns about potential leaks of customer and confidential data.