From 06744370080a84cffc20f9c2b9d66112b01e7f4a Mon Sep 17 00:00:00 2001
From: Simon Couch <simonpatrickcouch@gmail.com>
Date: Fri, 10 Jul 2026 09:00:17 -0700
Subject: [PATCH 1/3] Support Fable 5 fallback beta header

---
 R/provider-claude.R | 4 ++++
 1 file changed, 4 insertions(+)

diff --git a/R/provider-claude.R b/R/provider-claude.R
index 73fc2afa..a9a47013 100644
--- a/R/provider-claude.R
+++ b/R/provider-claude.R
@@ -448,6 +448,9 @@ method(value_turn, ProviderAnthropic) <- function(
         content$thinking,
         extra = list(signature = content$signature)
       )
+    } else if (content$type == "fallback") {
+      # https://platform.claude.com/docs/en/build-with-claude/refusals-and-fallback
+      NULL
     } else {
       cli::cli_abort(
         "Unknown content type {.str {content$type}}.",
@@ -455,6 +458,7 @@ method(value_turn, ProviderAnthropic) <- function(
       )
     }
   })
+  contents <- compact(contents)
 
   tokens <- value_tokens(provider, result)
   cache_write <- result$usage$cache_creation_input_tokens %||% 0

From 54d6f81a5734f0abef9197601f394c55d4d6e740 Mon Sep 17 00:00:00 2001
From: Simon Couch <simonpatrickcouch@gmail.com>
Date: Fri, 10 Jul 2026 09:06:16 -0700
Subject: [PATCH 2/3] add NEWS entry

---
 NEWS.md | 1 +
 1 file changed, 1 insertion(+)

diff --git a/NEWS.md b/NEWS.md
index 651c634d..6f360c66 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -6,6 +6,7 @@
 * `Chat` gains a `set_model()` method for updating the model after chat creation. Unlike some `chat_*()` functions, the model name is not validated (#988).
 * `chat()` now raises a warning and `chat_structured()` raises an informative error when a response is truncated, filtered, or otherwise incomplete (@thisisnic, #867).
 * `chat_anthropic()` now supports `params(reasoning_effort =)` for Claude's adaptive thinking mode (@thisisnic, #987).
+* `chat_anthropic()` now correctly handles the `fallback` content block returned when a model's server-side refusal fallback (`server-side-fallback-2026-06-01`) is triggered (@simonpcouch, #1058).
 * `chat_google_gemini()` now defaults to the `gemini-3.5-flash` model (@thisisnic, #885).
 * `chat_google_gemini()` and `chat_google_vertex()` now support `params(reasoning_effort =)` (@thisisnic, #873).
 * `chat_google_vertex()` and `models_google_vertex()` now default `location` and `project_id` to the `GOOGLE_CLOUD_LOCATION` and `GOOGLE_CLOUD_PROJECT` environment variables, no longer incorrectly use `GOOGLE_API_KEY` for authentication, and give a clearer error when cached credentials are invalid (@thisisnic, #994).

From 689eee352fe38bd7ea4958433f68c1fd6e7abd1f Mon Sep 17 00:00:00 2001
From: Simon Couch <simonpatrickcouch@gmail.com>
Date: Fri, 10 Jul 2026 12:54:19 -0700
Subject: [PATCH 3/3] price refusal fallback at serving model's rate

---
 R/provider-claude.R                   | 20 +++++++++++-
 R/tokens.R                            |  9 +++--
 tests/testthat/test-provider-claude.R | 47 +++++++++++++++++++++++++++
 3 files changed, 73 insertions(+), 3 deletions(-)

diff --git a/R/provider-claude.R b/R/provider-claude.R
index a9a47013..bc4535b3 100644
--- a/R/provider-claude.R
+++ b/R/provider-claude.R
@@ -466,7 +466,11 @@ method(value_turn, ProviderAnthropic) <- function(
   # already counts them at 1.0x, so add the 0.25x surcharge for pricing.
   cost_tokens <- tokens
   cost_tokens$input <- cost_tokens$input + cache_write * 0.25
-  cost <- get_token_cost(provider, cost_tokens)
+  cost <- get_token_cost(
+    provider,
+    cost_tokens,
+    model = serving_model(result) %||% provider@model
+  )
   AssistantTurn(
     contents,
     json = result,
@@ -476,6 +480,20 @@ method(value_turn, ProviderAnthropic) <- function(
   )
 }
 
+# The model that produced the returned message. `result$model` is unreliable
+# for a mid-output fallback in a stream (it keeps the requested model named at
+# `message_start`), so prefer the last `fallback` block's `to.model`.
+serving_model <- function(result) {
+  to_models <- compact(lapply(result$content, function(content) {
+    if (identical(content$type, "fallback")) content$to$model
+  }))
+  if (length(to_models) > 0) {
+    to_models[[length(to_models)]]
+  } else {
+    result$model
+  }
+}
+
 # ellmer -> Claude --------------------------------------------------------------
 
 method(as_json, list(ProviderAnthropic, Turn)) <- function(
diff --git a/R/tokens.R b/R/tokens.R
index 7c39f1e9..09010146 100644
--- a/R/tokens.R
+++ b/R/tokens.R
@@ -117,12 +117,17 @@ has_cost <- function(provider, model) {
   vctrs::vec_in(needle, prices[c("provider", "model")])
 }
 
-get_token_cost <- function(provider, tokens, variant = "") {
+get_token_cost <- function(
+  provider,
+  tokens,
+  variant = "",
+  model = provider@model
+) {
   check_string(variant, .internal = TRUE)
 
   needle <- data.frame(
     provider = provider@name,
-    model = provider@model,
+    model = model,
     variant = variant
   )
   idx <- vctrs::vec_match(needle, prices[c("provider", "model", "variant")])
diff --git a/tests/testthat/test-provider-claude.R b/tests/testthat/test-provider-claude.R
index b93d4ae6..66d23277 100644
--- a/tests/testthat/test-provider-claude.R
+++ b/tests/testthat/test-provider-claude.R
@@ -256,6 +256,53 @@ test_that("value_turn() prices cache writes at 1.25x while reporting raw tokens"
   expect_equal(unclass(turn@cost), expected_cost)
 })
 
+test_that("value_turn() prices a refusal fallback at the serving model's rate", {
+  provider <- ProviderAnthropic(
+    name = "Anthropic",
+    base_url = "https://api.anthropic.com/v1",
+    model = "claude-fable-5",
+    params = list(),
+    extra_args = list(),
+    extra_headers = character(),
+    credentials = NULL,
+    beta_headers = character(),
+    cache = ""
+  )
+
+  result <- list(
+    model = "claude-opus-4-8",
+    content = list(
+      list(
+        type = "fallback",
+        from = list(model = "claude-fable-5"),
+        to = list(model = "claude-opus-4-8")
+      ),
+      list(type = "text", text = "ok")
+    ),
+    stop_reason = "end_turn",
+    usage = list(input_tokens = 1000, output_tokens = 50)
+  )
+
+  turn <- value_turn(provider, result)
+
+  # opus-4-8 rates ($5/$25 per 1M), not fable-5's ($10/$50).
+  expect_equal(unclass(turn@cost), (1000 * 5 + 50 * 25) / 1e6)
+})
+
+test_that("serving_model() prefers the last fallback block's to.model", {
+  expect_equal(serving_model(list(model = "a", content = list())), "a")
+  expect_equal(
+    serving_model(list(
+      model = "requested",
+      content = list(
+        list(type = "fallback", to = list(model = "served")),
+        list(type = "text", text = "hi")
+      )
+    )),
+    "served"
+  )
+})
+
 test_that("stream_merge_chunks() handles citations_delta", {
   provider <- ProviderAnthropic(
     name = "Anthropic",