Amazon CEO Andy Jassy reportedly informed US government officials that Amazon researchers used Anthropic's Fable 5 model to obtain cyberattack-relevant information, triggering an export control ban that forced Anthropic to shut down both Fable 5 and Mythos 5 globally. The incident exposes a conflict of interest: Amazon is Anthropic's largest investor yet its CEO raised the security concerns that led to the shutdown. Anthropic disputes the severity of the jailbreak, calling the government's response disproportionate. The episode sets a significant precedent — a major cloud provider and investor can potentially weaponize regulatory channels against its own portfolio company — with broad implications for AI market competition and enterprise customers who lost access to models used in banking and government security work.

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