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Today:

• Anthropic Exposes Massive AI Espionage Campaign by Foreign Competitors

• Pentagon Enlists Elon Musk’s Grok in Major Military AI Push

• Defense Secretary Clashes with Anthropic CEO Over AI Military Restrictions

• Inside OpenAI’s Secret Push to Build Physical AI Smart Devices

• AI Chip Challenger Cerebras Secretly Files for U.S. IPO

The Pentagon vs. Anthropic: A "Not Friendly" Showdown

If you thought tech meetings were just about roadmaps and synergy, think again. U.S. Defense Secretary Pete Hegseth has summoned Anthropic CEO Dario Amodei to the Pentagon for what one senior defense official bluntly called a "sh*t-or-get-off-the-pot" meeting.

Here’s the deal: Anthropic’s Claude is currently the only AI model authorized inside the military's classified networks. In fact, Claude was reportedly used to help plan the January raid that captured Venezuelan President Nicolas Maduro. But Anthropic is holding a very firm ethical line: they are refusing to let the military use Claude for mass domestic surveillance of Americans or for fully autonomous weapons (weapons that fire without a human in the loop).

The Pentagon is furious. They want AI labs to allow their models to be used for "all lawful purposes," no questions asked. The dispute has gotten so heated that the Department of Defense is threatening to label Anthropic a "supply chain risk"—a devastating designation usually reserved for foreign adversaries that would force anyone doing business with the military to cut ties with the company. It's a massive culture clash between Silicon Valley AI safety ethics and the military's push for rapid AI dominance.

Anthropic Catches DeepSeek (and others) Red-Handed

While Anthropic is fighting the Pentagon on one front, they are fighting off international spies on another. The company just dropped a bombshell report revealing they’ve thwarted "industrial-scale" espionage campaigns from three major foreign AI labs: DeepSeek, Moonshot, and MiniMax.

What happened? These labs used a technique called a "distillation attack." They set up roughly 24,000 fraudulent accounts through proxy servers and pumped over 16 million highly specific queries into Claude. Their goal? To secretly extract Claude's advanced reasoning and coding capabilities to train their own cheaper models in a fraction of the time it would take to build them from scratch.

Anthropic caught them by identifying highly synchronized traffic patterns and tracing the metadata right back to senior researchers at these labs. But this isn't just about corporate theft; it's a massive security risk. When these foreign labs "distill" an American model, they strip away all the safety guardrails. That means the resulting cloned models can be used by authoritarian governments for cyber operations, bioweapons research, and disinformation, entirely unchecked.

Grok Puts on a Uniform

So, if the Pentagon is threatening to kick Anthropic out over their strict safety rules, who is stepping up to the plate? Enter: Grok. Yes, Elon Musk’s famously unfiltered AI is joining the military.

Defense Secretary Hegseth announced a new "AI acceleration strategy," revealing that the Pentagon will begin integrating xAI's Grok into both unclassified and classified U.S. military networks later this month.

Unlike Anthropic, companies like xAI (along with OpenAI and Google) have reportedly agreed to let the Department of Defense use their systems without the same strict ideological hold-ups, giving the military the "carte blanche" access it is demanding. It’s a fascinating, massive pivot for military tech. While Anthropic is drawing lines in the sand over human rights and autonomous weapons, the Pentagon is moving aggressively to bring Grok into the fold.

🧠RESEARCH

VESPO: Variational Sequence-Level Soft Policy Optimization for Stable Off-Policy LLM Training

When training AI to improve through trial and error, the learning process often crashes if the system gets out of sync with the data it generates. VESPO is a new mathematical method that smoothly corrects this imbalance, keeping the training stable and boosting performance across different types of AI models.

Does Your Reasoning Model Implicitly Know When to Stop Thinking?

Modern AI models often overthink problems, creating long answers that waste computing time and hurt accuracy. Researchers discovered that these models actually know when they have found the right answer, but current setups do not let them stop. A new method teaches AI to stop early, improving speed and accuracy.

Spanning the Visual Analogy Space with a Weight Basis of LoRAs

Image-generating AI often struggles to learn complex visual changes from examples. A new approach called LoRWeB solves this by blending several small, specialized image-editing tools on the fly. This allows the AI to better understand visual analogies and accurately apply new styles or changes to entirely different pictures.

📲SOCIAL MEDIA

🗞️MORE NEWS

OpenAI’s AI Devices OpenAI has assembled a 200-person team to build physical products like smart speakers, smart glasses, and lamps powered by its artificial intelligence. The company plans to sell its first smart speaker for $200 to $300 to bring its digital assistants directly into the physical world. This shift into hardware shows that the software maker wants to control exactly how people interact with its technology every day.

Cerebras Files IPO Cerebras, a company that makes computer chips for artificial intelligence, has secretly filed paperwork to become a publicly traded company in the United States. This move follows a major sales deal with OpenAI, showing that tech companies are eager for alternatives to the dominant chipmaker Nvidia. By selling shares to the public, Cerebras hopes to raise the money needed to compete in the booming market for the powerful parts that run modern AI programs.

DeepSeek to Release AI Model The Chinese startup DeepSeek is getting ready to launch a new, highly advanced artificial intelligence system. Financial experts worry this release could cause a sudden drop in the stock prices of major American technology companies on the Nasdaq stock exchange. Investors fear that DeepSeek's ability to create powerful and low-cost software might threaten the massive profits and market dominance of United States tech giants.

OpenAI Alliances OpenAI has formed a new program called "Frontier Alliances" by partnering with top global consulting firms like McKinsey, Boston Consulting Group, Accenture, and Capgemini. These consulting experts will help large businesses figure out how to successfully use OpenAI's new software platform to automate their daily tasks and organize their data. By working with established business advisors, OpenAI aims to prove that its technology can solve real corporate problems instead of just acting as a novelty tool.