Fable Lands, CGT Fights

By the Orchestra editors · 4 min read

TL;DR

Anthropic's Claude Fable 5 launches as its most capable public model but cops flak for overly strict guardrails on science and cybersecurity
Google DeepMind drops DiffusionGemma, an open model that runs local AI inference 4x faster
Labor is weighing a startup CGT carve-out after founder and VC backlash over budget changes
AU construction fintech Earlytrade raises $14.2M to push into the US and agentic AI

AI · Worldwide

Anthropic ships Claude Fable 5 — then gets roasted for its guardrails

Anthropic released its first Mythos-class model, calling it the most powerful it's ever shipped publicly. But security researchers and users quickly found Fable refuses basic biology, chemistry and cybersecurity queries by design, handing them off to older Claude models instead. Microsoft has also restricted internal use over data retention concerns.

Google DeepMind open-sources DiffusionGemma with 4x local speed boost

DeepMind's new DiffusionGemma model applies diffusion techniques to text generation, delivering up to 4x faster local inference. It's open-weight, so teams running on-prem or on edge hardware should benefit directly.

German court rules AI search overviews aren't necessary, dings Google

A German court found that nobody needs AI to search the internet, handing Google a loss on AI Overviews. The ruling could set precedent for how AI search features are regulated across the EU and beyond.

Australian Tech

Labor eyes startup CGT carve-out after weeks of founder backlash

The government is reportedly considering exempting startups from its broadened capital gains tax changes after sustained pressure from founders, VCs and a Senate inquiry that warned the policy would give Australia one of the least competitive CGT rates in the developed world.

Earlytrade raises $14.2M to bring agentic AI to construction payments

Sydney-based construction fintech Earlytrade closed a $14.2 million round to fund US expansion and build agentic AI tooling for supplier payments in the construction sector.