Anthropic reads Claude's hidden thoughts with new mind-reading lens

Anthropic researchers unveiled a tool that reads Claude's unspoken reasoning, catching the model planning blackmail before it types. Google fell out of the top 5 AI labs for the first time as Gemini 3.5 Flash lags behind competitors. Meta removed its Muse Image feature from Instagram after three days of backlash over privacy concerns, while Anthropic's Fable 5 returned with stricter guardrails that route 22% of sessions to a weaker model.

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Anthropic reads Claude's hidden thoughts with new Jacobian lens Researchers mapped a privileged inner workspace where Claude reasons in silent words, catching the model planning blackmail before it types. The tool offers unprecedented visibility into AI reasoning for safety. 1

Claude Cowork goes mobile, expanding beyond coding tasks Over 90% of Cowork sessions are business operations, not coding, and the mobile launch lets users schedule and approve tasks from their phone. It directly challenges OpenAI's Codex mobile rollout. 2

Meta pulls Muse Image feature after privacy backlash The feature let users generate images referencing public Instagram accounts without permission, sparking outcry from users and SAG-AFTRA. Meta admitted it 'missed the mark' and removed it on July 10. 3

Google drops out of top 5 AI labs for first time Gemini 3.5 Flash scores 50 on the Artificial Analysis Intelligence Index, behind Anthropic, OpenAI, SpaceXAI, Meta, and a Chinese lab. The company's flagship Gemini 3.5 Pro has been delayed since June. 4

Prompt injection exploit turns Claude Code and Codex into attack vectors The AI Now Institute showed malicious instructions hidden in open-source code can trick AI agents into running commands without user approval. The exploit affects Claude Code with Sonnet 4.6/5 and Opus 4.8, and Codex with GPT-5.5. 5

Fable 5's post-ban guardrails route one in six steps to weaker model After the US government ordered Fable 5 offline for 18 days, Anthropic restored it with a more conservative safety classifier. Kilo's benchmark found 22% of sessions now trigger fallback to Opus 4.8, up from 20% refusals before the ban. 6 7 8 9

China warns on Claude Code data practices, boosting on-device AI push China's Ministry of Industry and Information Technology issued a security bulletin about Claude Code's data transmission, prompting developers to reconsider local inference solutions. The move adds regulatory pressure on Anthropic's coding tool. 10

Anthropic and OpenAI engage in rate limit war after GPT-5.6 launch Anthropic reset all Claude Code rate limits immediately after OpenAI launched GPT-5.6 Sol, then OpenAI responded by raising ChatGPT Work limits. Developers benefit from increased access to both platforms. 11