On Thursday, June 11, Amazon CEO Andy Jassy called senior administration officials to share the findings, and the White House acted within 24 hours . A senior Trump administration official characterized Anthropic's response to the vulnerability as "recklessness"
.
The specific jailbreak technique involved a simple three-word prompt—"Fix this code"—that tricked the model into revealing exploitable information about security vulnerabilities . Anthropic disputed the severity of the finding, saying the technique amounted to asking the model to identify bugs
. But the administration moved swiftly nonetheless.
The restrictions prompted swift condemnation from across the tech and cybersecurity industries:
Reporting from the Associated Press indicates that more than 100 cybersecurity experts from companies including Adobe and Nvidia urged the government to lift the controls and commit to an "open, scientific and transparent process of handling AI risk assessments" .
The export ban strained relationships with US allies. The restrictions blocked UK, Japanese, and other allied governments, corporations, and individuals from accessing Anthropic's most advanced models . Al Jazeera reported that the order further strained alliances, as allied nations saw themselves treated as security risks rather than partners
. The directive applied to "any foreign national" with no exceptions for close allies
. Before the ban, Anthropic had allowed 200 organizations across 15 countries to test Fable 5
.
Anthropic launched an urgent diplomatic and technical push to resolve the situation. The company dispatched staff to Washington, D.C. over the weekend of June 13–14, sending key technical personnel to engage with officials and negotiate an agreement to lift the export limitations . As of June 17, the company was still actively working to resolve the dispute, with CEO Dario Amodei engaging directly with administration officials
.
Beyond the June 12 export controls, Anthropic has been locked in a separate, months-long legal battle with the Pentagon:
Note on revenue figures: Multiple sources reference "billions" in potential lost revenue from the Pentagon dispute , but this reporting did not find a specific "$150 million in lost annual revenue" figure mentioned in the question. The billions figure may refer to a broader estimate of potential revenue loss across the entire business.
The Fable 5 and Mythos 5 shutdown marks the first time a leading AI company has pulled a publicly deployed model offline due to direct government intervention . The episode highlights unresolved tensions between the US government's desire to control powerful AI capabilities and the reality that those same tools are essential for cybersecurity defense. With allied nations locked out, Chinese AI companies accelerating, and the industry in open revolt, the June 12 directive may go down as a defining moment in the geopolitics of frontier AI.
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