Everyday AI Podcast – An AI and ChatGPT Podcast
Everyday AI Podcast – An AI and ChatGPT Podcast

Ep 812: Fable 5 is (kinda) Back, OpenAI Might Give Gov Equity, Microsoft’s new AI Company and more AI News

July 6, 2026

AI Summary

5 min read

An Upside-Down Week in AI: Microsoft Starts a Consulting Company, Anthropic Reinstates Fable 5, and OpenAI Floats Government Equity

This week in AI felt like the world turned upside down. Microsoft launched a $2.5 billion AI consulting division with 6,000 employees. Anthropic announced it will start developing drugs. The company's most powerful model, Fable 5, returned after a 19-day suspension but will disappear again for most users within hours. And in the strangest development of all, OpenAI is reportedly considering giving the U.S. government a 5% equity stake in the company.

Microsoft Frontier Company: A $2.5 Billion Bet on AI Consulting

Microsoft has created a new subsidiary called Microsoft Frontier Company, backed by a $2.5 billion investment and 6,000 employees who will embed directly with clients to support AI adoption. The model is known as forward deployed engineering (FDE), a role popularized by Palantir and now adopted by OpenAI, Anthropic, and Google. Microsoft claims its platform supports more AI models and integrations than competitors like Palantir, giving it a unique pitch: since Microsoft is a major investor in both OpenAI and Anthropic, it can help clients navigate the choice between models without favoring one.

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What you'll learn

  • 1 (00:46) **Upside-Down Week in AI** - Host Jordan Wilson introduces a week of surprising AI headlines, including Microsoft starting a new company, Anthropic moving into drug discovery, and OpenAI considering giving equity to the US government.
  • 2 (02:12) **Microsoft Launches "Microsoft Frontier" with $2.5B and 6,000 Employees** - Microsoft invests $2.5 billion in a new AI client services company, embedding 6,000 employees directly with clients to support AI adoption.
  • 3 (07:06) **Anthropic Launches Claude Science for Drug Discovery** - Anthropic announces Claude Science, an AI workbench for scientific research, and reveals plans to develop drugs faster, focusing on neglected diseases.
  • 4 (09:24) **Meta Launches "MetaCompute" to Sell AI Cloud Capacity** - Meta launches a new subsidiary, MetaCompute, to sell its AI computing capacity to outside customers, directly competing with AWS, Azure, and Google Cloud.
  • 5 (14:00) **Cloudflare to Block AI Crawlers on Ad-Supported Pages** - Cloudflare announces it will default to blocking AI training and agent crawlers on ad-supported pages starting in September, while still allowing search crawlers.
  • 6 (19:09) **US Government Nears Voluntary AI Model Standards** - The US government is in advanced talks with leading AI companies to create voluntary standards for releasing new AI models, with an announcement expected as soon as this week.
  • 7 (24:52) **Fable 5 is Back (But Not for Long)** - Anthropic reinstates its advanced Fable 5 model after a 19-day suspension, adding aggressive new cybersecurity classifiers that frequently misidentify harmless prompts as security risks.

+ Full timestamped outline available in the app

Show Notes

This was upside down week in AI news. 😵

Microsoft is starting a new AI company. 

Anthropic is getting into pharma and drugs. 

And OpenAI might be giving 5% equity to the U.S. government? 

We'll help you sort it all out on our AI News That Matters show. 

Fable 5 is (kinda) Back, OpenAI Might Give Gov Equity, Microsoft’s new AI Company and more AI News -- An Everyday AI Chat with Jordan Wilson


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Topics Covered in This Episode:

  1. Microsoft Frontier Company $2.5B AI Investment
  2. Anthropic Claude Science Drug Discovery Launch
  3. MetaCompute Cloud AI Infrastructure Business
  4. Cloudflare Blocks AI Crawlers on Ad-Supported Pages
  5. US Government Voluntary AI Model Standards
  6. Anthropic Fable 5 Model Reinstatement Updates
  7. Fable 5 Enterprise Data Retention Policy Changes
  8. OpenAI Considers US Government 5% Equity Stake
  9. Anthropic SONNET 5 Model Release
  10. Meta Watermelon Model Rumors
  11. Alibaba Bans Claude Code over Security Concerns
  12. Anthropic and Samsung Custom AI Chip News
  13. OpenAI GPT 5.6 Soul Ultra in Codex
  14. US House Kids Act AI Safety Legislation
  15. Google Gemini Omni Flash and Nano Banana 2 Lite
  16. Cursor and OpenClaw Mobile App Launches




Timestamps:

00:00 Microsoft's big AI investment

05:05 AI experts deploying to companies

07:22 Anthropic's move into drug development

09:47 Meta's new cloud venture

13:29 Cloudflare blocks AI crawlers

16:32 Impact of AI on web traffic

19:37 Government oversight on AI releases

24:27 Fable Five model reinstated

29:19 AI firms discussing public financial stakes

30:46 AI companies preparing to go

Everyday AI Podcast – An AI and ChatGPT Podcast