BUBBLE TROUBLE: ANTHROPIC’S best AI model struggles to attract users…

Anthropic’s most powerful AI model, Fable 5, is struggling to gain traction as businesses opt for cheaper alternatives, according to a report by the Financial Times.

Spending on Fable 5 has plateaued at about 11% of total outlay on Anthropic’s tools, more than two months after launch, per data from payments firm Ramp. Analysts attribute the shift to Fable’s high cost and older models’ ability to handle most business needs.

The trend comes as Anthropic prepares for an IPO expected to value it at $2tn or more. Anthropic’s cheaper Opus 5 model has already overtaken Fable 5 in business spending.