US agencies are preparing to deploy Anthropic’s frontier AI model Mythos across federal departments even after a Trump-era decision to cut ties. The move is raising alarms among cybersecurity experts and adding fuel to political tensions between administrations, as Mythos is expected to power sensitive government workflows and information handling. The rollout’s scope and safeguards remain unclear.
Finance minister Nirmala Sitharaman met bank heads after Anthropic’s limited release of Claude Mythos, an AI system built to find high-severity zero-day vulnerabilities. Regulators including the RBI, MeitY, NPCI and global central banks are assessing how fast such models could enable cyberattacks in banking and legacy systems. Banks are told to tighten monitoring, pre-emptively secure IT, and report incidents immediately.
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Developers reported “AI shrinkflation” as Claude appeared less capable, more repetitive, and less efficient with tokens. Anthropic’s technical post-mortem says the model weights didn’t regress, but three surrounding product-layer changes did: a reasoning-effort default, a caching bug that wiped thinking too often, and tighter verbosity limits. The company says it has reverted the fixes and reset subscriber usage limits.
New research from Anthropic uses “observed exposure” to measure how AI actually affects specific occupations. It finds no broad increase in overall unemployment, but signals an early warning: hiring has slowed for young workers in the most AI-exposed professions. The study blends AI capability data with real-world usage patterns to spot labor market shifts early.
The Reserve Bank of India is in talks with global regulators and local banks to assess cybersecurity risks linked to Anthropic’s new AI model, Mythos. RBI officials are exploring safeguards and could seek direct access to the system to test for vulnerabilities, while also pushing for data localization to protect Indian customers’ information.
The Trump administration has defended a court challenge over its move to blacklist Anthropic, maker of the Claude AI assistant. Defense Secretary Pete Hegseth reportedly labeled the company a national security supply-chain risk after Anthropic declined to remove guardrails tied to preventing use in autonomous weapons or domestic surveillance.
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Anthropic says reports of “nerfed” Claude Code performance were caused by bugs that degraded the tool’s output. The company has released an update to address the issue and reset users’ rate limits, aiming to restore expected behavior and normalize usage after the malfunction. The fix comes amid growing scrutiny of model performance changes.
SpaceX, OpenAI and Anthropic are poised to fuel a record-breaking IPO wave in the U.S., driven by soaring private valuations, uneven but strong revenue growth, and rapid AI adoption. Yet the companies’ lack of consistent profitability could clash with investors’ long-term expectations and even complicate whether they qualify for certain index and inclusion rules.
Anthropic has submitted a new filing to an appeals court ahead of oral arguments on May 19, responding to questions raised by the court and claims tied to the Trump administration. The company argues it cannot manipulate Claude once deployed inside classified Pentagon military networks, challenging attempts to frame Anthropic as fully controllable over AI in sensitive systems.
Finance Minister Nirmala Sitharaman met bank heads to assess Artificial Intelligence risks after concerns tied to Anthropic’s Mythos model and its possible effects on financial system data security. Banks were urged to act early to protect infrastructure and customer information. Officials are now evaluating how widespread the threat could be and what safeguards are needed.
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AI company Anthropic is reportedly seeking a senior executive in London to secure major data centre capacity across Europe. The move supports its push to expand infrastructure beyond the US, targeting both established European AI hubs and emerging regions. The appointment is positioned as a key step to power Anthropic’s next-generation AI systems as its compute buildout accelerates.
Anthropic’s valuation is nearing $1 trillion in secondary markets, drawing heavy investor interest and even outpacing rival OpenAI in trading appetite. While fast revenue growth and a perceived competitive edge are helping, the latest surge appears powered as much by FOMO as by hard fundamentals. The gap between primary and secondary valuations adds to the buzz.
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