In June, Anthropic introduced a policy allowing the retention of customer usage logs for 30 days, or up to two years if flagged by safety systems. This change affected the Claude Fable 5 model and removed previous zero-data-retention guarantees for enterprise clients.
Nvidia restricted the use of Fable to low-stakes tasks, opting for its own Nemotron models for sensitive work like supply chain monitoring. Despite being an investor in Anthropic and a hardware supplier, Nvidia maintains that zero data retention should be the default standard.
Other major firms implemented similar restrictions. Booz Allen Hamilton banned Fable for work involving proprietary cybersecurity software, while Palantir refuses to offer the model on its platform until Anthropic provides an irrevocable zero-data-retention guarantee.
Northrop Grumman continues to run open-source models on air-gapped servers to keep sensitive workloads within its own infrastructure. A major U.S. utility company also canceled plans to test Fable on core power infrastructure due to data retention concerns.
Anthropic launched Enterprise Frontier Safeguards on September 1, allowing customers to store retained data on their own cloud infrastructure using their own encryption keys. The company plans to roll out these safeguards in phases throughout the fall.
