Anthropic’s Fable and the State of AI

On June 9th, Anthropic released its Fable generative AI model. Three days later, the US government classified it as a dangerous munition, and used its export-control authority to prohibit any foreign nationals from accessing it. Unable to differentiate between Americans and foreigners, the company shut off access for everyone.

The government’s actions won’t help. The problem isn’t any one particular model; it’s the general trend of increasing AI capabilities. And any real solution requires the sort of collective action that just isn’t possible right now.

Fable is the constrained version of Mythos, the AI model Anthropic announced in April. Anthropic only released it to a few selected organizations, because the company claimed it was so good at finding and exploiting vulnerabilities in computer code that releasing it more generally would be dangerous.

It was an obviously self-serving announcement, and because few were able to verify Anthropic’s claims they were met with some skepticism. Those with access used Mythos to find and patch many vulnerabilities in their own software. But one UK group found the latest, already public, OpenAI model to be just as powerful.

Fable is just another incremental improvement in the years-long climb of AI capabilities. But just as important as the AI model is the “harness.” This is typically not AI. It’s ordinary computer code that interfaces with the user. It stitches together AI models, decides how and for what purposes they can be used, and gives them useful tools such as web search and the ability to run their own computer code.

When Mythos first entered limited release, there was widespread debate whether its power came from the model or the harness. With Mythos demonstrating that it was possible, the open-source community scrambled to build harnesses that could steer other AI models towards similar capabilities. Harness improvements don’t need massive data or data centers.

They largely succeeded. For example, a Prague company was able to replicate Anthropic’s few verifiable cybersecurity capabilities with a much smaller and cheaper model—and a more sophisticated harness. Last week, a group showed that multiple cheaper models harnessed in concert matches Fable’s performance.

The broader community had only a few days with Fable, but that time we learned some about its capabilities. Its difference is less the new model’s raw analytical and problem solving capabilities, and more that the model doesn’t need that sophisticated harness.

Fable requires much less expertise and detailed prompting from the human user. You can give it a difficult goal and it will figure out novel and unexpected ways to satisfy it, finding loopholes in whatever constraints you or the system have imposed on it.

“Relentlessly proactive” is how AI researcher Simon Willison described it. Another descriptor might be “creative.” Experienced AI developers have had that combination of creativity and proactivity since last year, but Fable puts it within easy reach of everyone.

In the hands of someone with a legitimate problem that needs solving, that can be an incredibly useful capability. But in the hands of someone who wants to do harm, it can be equally dangerous. AIs don’t have a moral compass in the same way that people do. They are agents of the wants and desires of the people who prompt them.

That points to the real problem with relentlessly proactive AI. In language, wants and desires are always underspecified. If I ask you to get me some coffee, you would probably pour me a cup from the coffeepot, or buy one from a nearby coffee shop.

You couldn’t buy me a pound of raw beans, or a coffee plantation. You wouldn’t order a cup of coffee for delivery next month. You wouldn’t find a nearby person, rip a cup of coffee out of their hands, and bring it to me. I wouldn’t have to specify any of the million limitations to my request; you would just know.

Human stories are filled with warnings about underspecified desires. King Midas wished that everything he touch turn to gold, forgetting to add “but not my food, drink, and daughter.” And genies are notorious for granting your wish in a way you wish they hadn’t.

The deeper point is that it’s impossible to list all limitations and restrictions, and like a malicious genie, a creative AI will find the ones you forgot. Block a database you don’t want it to have access to, and it might figure out how to bypass your control. Ask it to book a flight, and it might hack the airline because the website says the flight is sold out. Ask it to save money on your cellphone plan, and it might cancel it altogether—or get someone else to pay for it. As far as we know now AI has not done any of this yet, but you get the idea.

Malicious intent is not required. To an AI model, constraints are just things to get around and not general truisms about the world. They are creative problem solvers and natural rule breakers. They “hack” in the sense that they find and exploit loopholes.

Human systems rely on so many norms that we scarcely recognize the existence of until they are broken. AIs naturally think outside the box, because they don’t have any real conception of what the box is or why it’s there in the first place.

There is no foolproof way to prevent people from using AI models to complete harmful tasks. There is no way to prevent the models from incidentally causing harm while completing benign tasks. AI models are no longer isolated from the real world. They browse the internet and answer emails.

They trade stocks and make purchases. They control physical systems. They are, in effect, robots that affect life and property. We have no technical mechanisms to verify the integrity of an AI system. This level of capability and creativity in the hands of us untrustworthy humans will have both great and terrible results.

The problem is not unique to Anthropic. Mythos/Fable might currently be the most capable rules hacker, but more sophisticated harnesses give other models similar capabilities. And we should assume that the other frontier models are no more than a few months behind, and that open-source models are less than a year behind. At best, any ban only serves to delay the problem for a short while.

That delay might be useful if we—as a society, as a planet—would use that time to come together and figure out what to do. This isn’t a US/China arms race problem; this a species-level problem that requires coordinated action at that scale. Unfortunately, we have no mechanism to do that. I first wrote about this problem five years ago, but it was all too futuristic.

Today, when its right in front of us, there is no world government that can impose constraints on the for-profit corporations currently controlling AI models and research. The US has no appetite to effectively and even-handedly regulate those corporations, even as they do catastrophic damage to the environment, democracy, and—in this case—society in general.

This all makes an AI public option all the more necessary, and urgent. Today’s AIs can be fast, smart and secure, but only two of the three are possible for any given system. These safety tradeoffs are tightly held secrets of companies racing to beat one another, and they tell us we have to trust them. Instead, the choices and their consequences need to be brought out into the sunlight.

We should be funding open-source harnesses that balance capability and safety—that achieve useful goals without so much power—and open-source AI models whose provenance and biases are public and well understood. We have opened the AI Pandora’s box. Now we have to make the best of it.

This essay originally appeared in The Guardian.

Posted on June 19, 2026 at 7:03 AM7 Comments

Embedding Forbidden Text in Spyware to Discourage AI Analysis

At least one malware developer is adding text about nuclear and biological weapons to their spyware, in an effort to stop automatic AI analysis.

Details:

The _index.js payload begins with a large JavaScript block comment containing fake system instructions and policy-triggering content. Because it is inside a comment, it does not affect JavaScript execution. The runtime skips it. The real malware begins after the comment with a try{eval(…)} wrapper around a large character-code array and a ROT-style substitution function.

This header appears designed for AI-mediated analysis, not for Node, Bun, or Python. It attempts to derail scanners or analyst copilots that feed the beginning of a file to a language model without clearly isolating the content as untrusted data. In weak pipelines, this can cause refusal behavior, prompt confusion, context pollution, or premature classification before the scanner reaches the actual malware.

This is not a magical bypass against static detection. YARA rules, entropy checks, AST parsing, string extraction, deobfuscation, and behavioral rules still work. But it is a practical anti-analysis trick against naive LLM-first triage systems.

Posted on June 18, 2026 at 7:04 AM6 Comments

AI Use by the US Government

On 14 April, the Trump administration quietly acknowledged the widespread use of AI to automate government processes. The office of management and budget (OMB) disclosed a staggering 3,611 active or planned use cases for AI across the federal government. The list has ballooned by 70% from the one published in the final year of the Biden administration, and includes many disturbing-seeming plans to hand over sensitive governmental functions to AI.

Scanning this list, many readers may find many causes for alarm. It represents a transfer of decision processes from human to machine on a massive scale over matters of individual freedom, public health and well-being, nuclear reactor safety and more.

Consider these examples. The Health and Human Services’ (HHS) office of administration for children and families hired the world’s “scariest AI company,” Palantir—notorious for its work on behalf of the military, the CIA and ICE—to scan all grant applications to flag those not ideologically aligned with the administration’s dictates. The Federal Bureau of Prisons is developing an AI system to assess the “potential for misconduct for newly admitted inmates,” routing people into high-security confinement before they have actually done anything wrong in their custody. These read like programs fit for a Philip K Dick or George Orwell novel.

Other use cases insert AI into life-and-death decision making. The Department of Veterans Affairs is developing an AI that will listen in on calls to the veterans crisis line, and then gather information from external databases to assess the mental state and suicide risk of the caller.

The Department of Energy is testing the use of AI to control nuclear reactors, targeting a way to autonomously respond to potential nuclear safety incidents. Here’s one that’s disturbing for its retirement, rather than its deployment: the state department has ended a program to use AI to forecast mass civilian killings, which had been intended to aid conflict prevention.

While it’s easy to raise questions about these and similar uses of AI, the reality is that any of these programs could be implemented responsibly. In some cases, like the HHS system, the AI might be enforcing alignment to a policy prescription that opponents abhor. But that concern is more about the policy itself rather than the idea that agencies should comply with executive orders.

In other cases, there may even be bipartisan agreement on the goal, like taking urgent action to help veterans at risk of self-harm. Lots of work and validation is needed to prove AI safe and effective for these use cases and convince the public it is appropriate, but the idea is plausible.

In other cases, a scary-sounding AI use may not even be new. The use of predictive methods and statistics to assign prisoner security classifications goes back decades, even if such systems are often biased and ineffective.

Using autonomous systems for model predictive control (MPC) of nuclear reactors is a well studied, and a widely applied aspect of nuclear plant management. And the recently disclosed addition of AI was initiated under the Biden administration.

But anyone reviewing the 2025 inventory could be forgiven for leaping to severe conclusions. What matters are the details of how the AI system is used, and here the inventory is severely lacking.

The disclosures carry minimal information, and lack the context necessary to understand their purpose and approach. The descriptions are typically just a sentence, and rarely more than a paragraph.

And while the process theoretically involves some form of public consultation, in reality there is generally none. It would take an eagle-eyed citizen to even come across this disclosure. Unless you read FedScoop regularly, or watch the OMB’s federal chief information officer’s GitHub account, you probably missed it.

Only one of the examples cited above (the DoJ) even proposes to involve the public. Under the administration’s policy, it’s not required for the rest because they are not classified as “high impact” use cases—a label that is applied inconsistently across agencies.

We wrote a book surveying applications of AI to democratic processes worldwide, including executive agencies as well as the courts, legislatures and politics. Our conclusion was that, while there are inappropriate applications of AI in governance that should be resisted, an urgent need to reform the economics of AI, and an imperative for renovating the democratic systems it is being unleashed on, there are also valuable and beneficial use cases for AI in government.

Machine translation is a good example. Customs and Border Protection (CBP) has deployed an AI translation system to help officers when human interpreters are not available. The idea that CBP, an agency under heavy scrutiny for reported abuses of human rights, would direct people to talk to a machine instead of a person may strike many as inhumane.

It’s true that human interpreters have very real advantages when it comes to understanding nuance from physical cues and social context. But an officer with a competent AI translator available immediately is better than one who cannot communicate with the person in front of them.

The Trump administration’s AI use case inventory has 70 such translation use cases, up from 58 in the Biden administration’s 2024 disclosure.

Disclosure of AI use cases could be a means to build public confidence and trust, but only if paired with consistent, meaningful public consultation. Washington DC and California are actively engaging the public to determine where and how it’s appropriate to use AI in government processes, or for government to regulate AI use in society.

Both have held public deliberations on this topic at a wide scale, using AI platforms. These examples demonstrate the potential for capturing broad-based public input to steer AI policy.

The international gold standard was arguably set by the French in 2016, via their Digital Republic Act. The law, itself informed by an online citizen consultation, requires all algorithms used to automate government administrative decisions to be subject to public records requests, to be appealable to a human reviewer, and to have mandatory notification of the use of automation to those affected by the decisions.

Canada offers another example of what more rigorous and participatory disclosure might look like. In 2025, they launched an AI use case registry, not unlike the US inventory. However, Canada also has a federal directive mandating a transparent risk-scoring and impact assessment process for automated systems that make administrative decisions about citizens.

That longstanding directive requires a detailed explanation of risks and benefits as well as consultation with certain stakeholders from the conception of the AI use case. The Canadian system could be improved; it could require a public comment period and an obligation for agencies to respond substantively to feedback before engaging in sensitive uses of AI.

AI offers real potential to improve the efficacy, efficiency and accessibility of government. But, equally, there is legitimate reason for public concern and distrust that can only be addressed through transparency and dialog. The US should adopt, at the federal and state level, algorithmic impact risk assessment procedures and public comment processes to facilitate a safe, trusted, equitable transformation of government agencies to take advantage of modern technology.

This essay was written with Nathan E. Sanders, and originally appeared in The Guardian.

Posted on June 17, 2026 at 7:04 AM13 Comments

The FCC Wants to Eliminate Burner Phones

A proposed FCC rule would kill burner phones: phones whose accounts are not attached to a particular person.

The FCC plans to do this by legally forcing the country’s telecoms to store a wealth of personal information about essentially all phone customers, including a government issued identification number and their physical address, alarming privacy advocates and civil rights activists who compare the measures to those from authoritarian countries where it can be difficult to buy a mobile phone plan without giving up your identity.

The proposed change would drastically shake up how people obtain phone plans in the U.S., and have all sorts of privacy and cybersecurity knock-on effects. The FCC is proposing the data collection partly as a way to combat scammers, with telecoms being required to collect other information on business and foreign customers like the intended use case of their bulk phone plan purchase and their IP address. But the changes would mean telecoms collect data on all new and renewing customers, and the FCC provides a long list of other things that the collected data could help authorities with.

Alternate link.

Posted on June 15, 2026 at 7:01 AM22 Comments

Upcoming Speaking Engagements

This is a current list of where and when I am scheduled to speak:

  • I’m giving a keynote at Cybernation 2026 in Berlin, Germany, on June 24, 2026.
  • I’m speaking at the Potsdam Conference on National Cybersecurity at the Hasso Plattner Institut in Potsdam, Germany. The event runs June 24–25, 2026, and my talk will be the evening of June 24.
  • I’m participating in a panel discussion at the Austrian Institute for International Affairs in Vienna on Thursday, June 25, 2026.
  • I’m speaking at the Digital Humanism Conference in Vienna, Austria, on Friday, June 26, 2026.
  • I’m giving a fireside chat for Epicenter Works, to be held at Kaffee Alt Wien in Vienna, Austria, on Friday, June 26, 2026.
  • I’m participating (via Zoom) in a panel discussion at Quantum.Tech World in Boston, Massachusetts, USA, on Friday, June 26, 2026. The topic is “Q-Day’s Shortening Deadline: Immediate Solutions.”
  • I’m speaking at Czech Technical University in Prague, Czechia, on Monday, June 29, 2026.
  • I’m speaking at the Nuremberg Digital Festival in Nuremburg, Germany, on Wednesday, July 1, 2026.
  • I’m speaking at CanSecWest 2026 in Vancouver, Canada. The conference runs September 30–October 1, 2026; the time of my talk is TBD.

The list is maintained on this page.

Posted on June 14, 2026 at 12:07 PM1 Comments

Bernie Sanders’ AI Sovereign Wealth Fund Plan

Let no one accuse Bernie Sanders of ducking the big questions. Writing in the New York Times last week, the senator asked: “Will the future of humanity be determined by a handful of billionaires who have promoted and developed AI, with virtually no democratic input, who stand to become even richer and more powerful than they are today?”

We agree entirely that this is one of the most potent questions facing global democracy today. Our book, Rewiring Democracy, surveys the emerging uses for and impacts of AI in democracy around the world and reaches the same conclusion: that the most urgent risk posed by AI is the concentration of power, wealth and control among tech oligarchs.

And yet we reached a vastly different conclusion than Sanders on what to do about it.

The senator points to a once radical but increasingly popular solution: creating a US sovereign wealth fund by taking 50% stock in AI companies such as Anthropic, OpenAI and xAI. The argument in favor of this is twofold. One: it would establish democratic control over the AI companies, giving the government “the power, through its voting shares and an equal representation on each company’s board, to block decisions that hurt our citizens and to push for policies that help them.” Two: it would return a big chunk of the economic rewards of soaring AI valuations to the public, ensuring “trillions of dollars potentially generated by AI are used to improve the lives of all of us.”

We laud both these goals unreservedly.

We wholeheartedly agree that there must be public influence over the development and use of AI, just as we demand the government intervene to ensure that automakers, drugmakers, airlines and other industries balance profitability with public safety and the public interest. And we credit the senator with recognizing that there are more levers for the government to pull beyond the promulgation of regulation to achieve this.

And we also agree that the obscene, dangerous accumulation of wealth among AI companies needs to be disrupted. As OpenAI and Anthropic race to be minted as the world’s latest trillion-dollar AI companies, we should recognize that—whether or not it constitutes a bubble—these staggering market capitalizations represent a transfer of wealth. The flow of money goes from the smaller businesses and actual people using AI, and being subjected to it, to the owners of these tech companies.

That includes the world’s 86 AI billionaires “seeking to maximize their power and profit” aiming to decide the “fate of humanity… behind closed doors in Silicon Valley,” as Sanders said.

And yet, while we do not outright oppose the taking of AI company stock, or of a US sovereign wealth fund, there are better ways to achieve Sanders’ stated goals.

Public ownership of these companies entangles corporate profit and valuation with the public interest. It would incentivize the government to clear regulations, permit the exploitation of workers and users, suppress competition, encourage AI adoption regardless of the responsibleness of the implementation or appropriateness of the use case, and otherwise act on behalf of corporate interests.

After all, if growing, say, Nvidia from its first $5tn in value to its next $5tn also represents a doubling in value of this segment of the sovereign wealth fund, then you can expect the fund managers to support chip sales, foreign and domestic, with the same zeal as the company’s private investors.

This is not an effective way to influence corporations to act in the public interest. In fact, it makes corporate influence on the government more likely.

We should be wary of this possibility because we’ve seen it before. Ownership of substantial stakes in oil companies by the Norwegian sovereign wealth fund, the world’s largest, does not seem to have steered those corporations to pro-environmental policies. Instead, the Norwegian government’s dependence on those companies has inhibited them from taking climate action. Here in the US, public employee pension funds merit the same criticism: the fiduciary duty to generate wealth overwhelms any intention to direct their corporate holdings in the public interest.

A better answer is to separate the two goals. The standard way to share private rewards with the broader society that made them possible is taxation. Senator Elizabeth Warren has proposed an excise tax on datacenters’ energy use. Others have proposed an AI token tax, which has much the same effect.

As to the goal of reshaping AI in the public interest, we have proposed an AI Public Option. The concept is for governments, be it federal or state, to establish publicly developed and operated AI models run by public institutions under democratic control. The idea is not to eliminate corporate AI or to seize it as a public asset, but rather for government to provide a competitive baseline that private AI offerings must meet or exceed to win business—just like the notion of a healthcare public option.

The Swiss have trailblazed this approach. Apertus is a large language model built by Swiss public servants, researchers at Swiss universities, using appropriately licensed training data and pre-existing Swiss public supercomputing infrastructure powered by renewable energy.

While Apertus doesn’t seriously compete with the latest OpenAI and Anthropic models on performance benchmarks, it blows them out of the water in transparency, sustainability and compliance with EU regulations including adherence to copyright. It’s a nascent project, but suggestive of how public institutions can apply competitive pressure for corporate actors to behave responsibly.

Don’t confuse public AI with “sovereign AI,” the notion that every country needs to invest in domestic AI infrastructure. Sovereign AI is often invoked as a marketing scheme for big tech companies looking to sell to governments; it demands public investment without guaranteeing public control.

Sanders is a bold and savvy political operator. So why is he pursuing the sovereign wealth fund strategy when he must be aware of these risks? It may be due to another argument he makes in his op-ed: that the Trump administration and the billionaire owners of AI are aligned to the idea.

It’s expedient to capitalize on rare moments of seeming alignment across diverse political factions, but it also behooves us to ask why the AI billionaires are open to this extraordinary intervention. The answer, of course, is that they believe that for every dollar ceded to government stock expropriation, they will get back more in favorable government policies to protect that newfound investment.

Energy taxation is a straightforward way to make AI companies pay for the social disruption of their technologies. Public AI represents a non-monetary mechanism for governments to shape the development of AI, complementary to direct regulation of private actors, one with a far greater chance of influencing corporate behavior towards the public interest. We urge Sanders and other political leaders to consider them.

This essay was written with Nathan E. Sanders, and originally appeared in The Guardian.

Posted on June 12, 2026 at 7:03 AM19 Comments

Enhanced License Plate Tracking

The surveillance company Leonardo wants more data:

A surveillance company plans to add sensors to automatic license plate readers (ALPRs) that would mean the devices, as well as capture the license plate of passing vehicles, would also sweep up unique identifiers of mobile phones, wearables, and other Bluetooth-enabled devices in those cars, potentially letting law enforcement identify specific drivers or passengers.

The technology, called SignalTrace, would turn ALPR cameras from devices focused on tracking cars to ones that can more readily track the location of particular people. ALPR cameras have become a commonly deployed technology all across the U.S.; SignalTrace would make some of those cameras capable of collecting much more data.

Yes, it’s bad that more companies are collecting this level of surveillance data. But all of this pales in comparison to the type and quantity of data our smartphones already collect about us.

Alternate link.

Posted on June 11, 2026 at 7:01 AM28 Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.