This Week in AI: Fable 5, the Clone Wave, and Uber’s AI Reality Check

This week, egghead.io cofounder John Lindquist joined host YK Sugi, founder of CS Dojo and developer experience manager at Eventual, to cover the latest AI news. First on the agenda was the contested release of Claude Fable 5. They also examined the financial shifts reshaping the technology industry, including the rising costs associated with agentic coding loops. Then John outlined the framework he uses to build in the agent era without starting from scratch every time.

Watch the full episode here:

Claude Fable 5: 3 days, a government order, and a lot of unanswered questions

Claude Fable 5 launched June 9 and was pulled from all customers on June 12 after the US government issued a directive ordering Anthropic to restrict access for foreign nationals inside and outside the US. Amazon researchers had reportedly surfaced what they characterized as a security vulnerability, and after Anthropic reportedly declined to patch or redeploy the model, the directive came down. Senior Anthropic staff subsequently traveled to Washington to meet with White House officials.

The dispute about what actually happened is unresolved. Anthropic’s position is that the reported issue was a narrow jailbreak that had been previously identified and was present across public models generally, and not a serious security threat. An independent researcher who reviewed the report described it as defensive prompting that surfaced known vulnerabilities and called the response an overreaction. Neither side has published the technique or prompt, so there’s no way to evaluate the claim independently. But as John put it, “It sets a very strange precedent going forward, as models are released, that governments can step in and control what private companies can and cannot do with their model.”

Another new precedent: Fable 5 wasn’t built on the Opus or Sonnet architecture, which means comparisons to prior Anthropic models or contemporaries don’t tell us much. But initial impressions were positive, including from YK and John, and Fable 5 quickly reached the top of the Arena leaderboard in the text, agents, and web dev code categories. However, the model also had a purposeful limitation: On questions related to AI and machine learning training specifically, it was designed to underperform (without signaling this to users), apparently to prevent competitors from using it to improve their own models. Intentional capability suppression in a commercial model, without disclosure, is a different kind of product decision than a safety guardrail. Whether that approach becomes more common as competitive stakes rise is an open question.

Tokens burn fast when the loop isn’t ready for them

Last week, SpaceX went public in the largest IPO in history. The company finalized its acquisition of Cursor in a $60 billion all-stock deal shortly after. (That last one happened after this episode aired—we’ll talk more about it on Monday.) Both OpenAI and Anthropic have filed to go public as well, and Google raised roughly $160 billion through equity and a 100-year bond. A significant share of that capital is flowing toward AI coding infrastructure.

YK brought up another, less celebratory, financial story that’s been making the rounds: Uber burned through its full 2026 AI tools budget by April, mostly on Claude Code and Cursor, and Andrew Macdonald, the company’s COO, acknowledged they couldn’t link that spending to a measurable increase in useful customer features. Uber subsequently put a $1,500 per month per employee cap in place.

John flagged projects inefficiently utilizing agentic loops as one possible cause for wasteful token spend. Most developers deploying agents against existing codebases haven’t built the tooling those agents need to work efficiently, so agents burn tokens doing work that dead-ends, repeating context, or generating code that requires significant debugging. He explained:

If you take a legacy codebase and you throw agents against it with loops, you haven’t set up a proper agent environment. It’s so quick to burn tokens because. . .the agents don’t have the tools to work with.

The conversation in developer communities so far has focused almost entirely on what agents can generate. But as more organizations move from experimentation to production-scale deployment, building logging, verification, and proper error surfaces into agent tooling is what will determine whether token spend maps to real output. Otherwise, we’ll likely see more companies go the way of Uber.

Ingredients beat inference: A practical framework for building in the clone wave

For most developer workflows today, buy-versus-build leans toward building in a way it didn’t even a year or two ago. As John noted, “It’s so easy to build apps and workflows now where there are so many amazing production apps out there, apps on your phone, apps on your desktop, software as a service, that are trivial to copy and clone.” He uses the term the “clone wave” to describe this expanding set of open source equivalents to consumer software products that can now be cloned, forked, or replaced and get you 99% of the way to your use case.

The principle that drives the clone wave is “ingredients beat inference.” If you ask an agent to build a feature from scratch, it infers a solution with no external reference. If you give it an existing open source implementation to start from, it can adapt, translate, and integrate that code far faster and more reliably. The ingredients approach also helps with the 43% of AI-generated code that needs debugging in production, per a figure YK cited earlier in the episode.

The GitHub CLI plays a central role in this workflow. John explained that because agents understand the GitHub CLI natively, you can give an agent a search task and let it find implementations it wouldn’t have generated itself. Language mismatch isn’t a blocker, because agents translate between languages and libraries well. And tools like DeepWiki from Cognition let agents explore and understand a repo’s structure before cloning or forking it, so the evaluation step doesn’t require local setup.

The framework extends to how you build the last 20% that isn’t available as an ingredient. This is the part that’s specific to your use case; John described it as “that extra bit that you’re building on top of it to make it into the custom product and project for either yourself or for your users.” John’s bigger point is that the tools you build for yourself should also be usable by your agents. Expose endpoints and logging. Give agents the ability to read state and errors. An agent that can control a tool but not debug it will eventually stop in ways that are hard to diagnose.

John walked through cmux to demonstrate what an agent-native workspace looks like in practice. cmux is a terminal multiplexer built with agentic workflows in mind: it exposes a CLI that agents can control directly, so you can open a terminal pane, have that pane spawn another, and have the two read from and write to each other. In practice that means you can run Claude Code in one pane, Codex in another, and a third pane reading output from both, with each agent able to observe the others’ state.

Agents need more than the ability to run commands. They need to read logs, check errors, and confirm state before taking the next step. A workspace that exposes those surfaces gives agents a feedback loop. This tenet is applicable to tools across the company. Organizations that treat their internal tooling as agent-accessible infrastructure are building something that compounds. Those treating agents as black-box code generators are taking on technical debt they may not see until causes issues later on.

What’s next

SpaceX’s acquisition of Cursor turns the coding-agent race into something much larger than an IDE fight. Cursor may be positioning itself as a new GitHub for the agentic era, where agents write, review, test, repair, and govern code. At the same time, Salesforce’s $3.6B acquisition of Fin shows the same pattern inside enterprise software: Buyers want packaged workflows that solve real support, sales, and operations problems rather than abstract “agents.”

Next week, host Ksenia Se examines these stories and more through the lens of who owns the loop where AI does the work. Join us to find out why the next phase of AI will be about who controls the infrastructure, economics, and trust layer.

Our episodes are free and open to all through the end of June if you’d like to attend live—register here. And we’ll continue to publish our takeaways here on Radar each Friday and share full episodes on YouTube, Spotify, Apple, or wherever you get your podcasts.