Anthropic Sues Pentagon, OpenAI Acquires Promptfoo
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 hours ago
0mins
Should l Buy MSFT?
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.ANTHROPIC SUES PENTAGON:AI company Anthropic has filed two legal complaints against the U.S. Department of Defense in California and Washington, D.C. following a weeks-long conflict between the two parties over whether the military should have unrestricted access to Anthropic's AI systems, TechCrunch's Rebecca Bellan. The conflict arose after the Claude maker stated that it didn't want its technology to be used for mass surveillance of Americans and didn't believe it was prepared to power fully autonomous weapons with no humans making targeting and firing decisions. In response, Defense Secretary Pete Hegseth said that the Pentagon should have access to Anthropic's AI systems for "any lawful purpose," with the agency labeling Anthropic a supply chain risk last week, the author notes.ACQUISITION:OpenAI, "We're acquiring Promptfoo, an AI security platform that helps enterprises identify and remediate vulnerabilities in AI systems during development. Once the acquisition is finalized, we will integrate Promptfoo's technology directly into OpenAI Frontier, our platform for building and operating AI coworkers... The Promptfoo team, led by Ian Webster and Michael D'Angelo, has built a powerful suite of tools trusted by over 25 percent of Fortune 500 companies, along with a widely used open-source CLI and library for evaluating and red-teaming LLM applications. Together, we will continue building the open-source project while also advancing the integrated enterprise capabilities within Frontier."RESIGNATION:The head of OpenAI's robotics team, Caitlin Kalinowski, confirmed her resignation, saying in aon X, formerly Twitter, "I resigned from OpenAI. I care deeply about the Robotics team and the work we built together. This wasn't an easy call. AI has an important role in national security. But surveillance of Americans without judicial oversight and lethal autonomy without human authorization are lines that deserved more deliberation than they got. This was about principle, not people. I have deep respect for Sam and the team, and I'm proud of what we built together."DATA CENTER IN TEXAS:Oracleand OpenAI have scrapped plans to expand an artificial intelligence data center in Texas after negotiations dragged over financing and OpenAI's changing needs, sources told Bloomberg Brody Ford, Ed Ludlow and Dina Bass. This created an opening for Meta Platformsto step in and consider leasing the planned expansion site from developer Crusoe after Nvidiahelped facilitate Meta's discussions with the developer, the news service reported on Friday afternoon.FUNDING ROUND:Together AI, a major cloud provider renting Nvidiachip servers to AI developers, is in advanced talks to raise roughly $1B in new funding at a pre-money valuation of about $7.5B, The Information's Valida Pau, Stephanie Palazzolo and Anissa Gardizy. The new funding round would more than double the startup's valuation from a year ago.AI DEALS:Samsung'sconsumer device chief TM Roh says the company is "open to strategic co-operation" with more AI groups, having recently added Perplexity to its mobile OS, in an effort to challenge Apple'ssmartphone lead, The Financial Times' Michael Acton.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 408.960
Low
500.00
Averages
631.36
High
678.00
Current: 408.960
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Price Increase: Microsoft is raising the monthly fee for its enterprise Microsoft 365 E7 to $99, a 65% increase from the $60 E5 subscription, aiming to attract more enterprise users to its Copilot AI add-on, thereby boosting overall revenue.
- New Product Bundle: The E7 suite includes $30 for Copilot, $12 for Entra identity tools, and $15 for Agent 365, providing a comprehensive AI management solution that enhances companies' competitiveness in digital transformation.
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See More
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- Market Impact: Promptfoo's open-source tools have been downloaded by over 125,000 developers and are currently utilized by more than 25% of Fortune 500 companies, highlighting the widespread acceptance and significance of its products in the market.
- Technology Integration: OpenAI plans to integrate several of Promptfoo's tools into its Frontier platform, enhancing the security and reliability of AI applications, thereby improving safety testing and oversight capabilities during AI development workflows.
- Founders' Background: Promptfoo's founders, Ian Webster and Michael D'Angelo, bring extensive industry experience, with Webster previously leading large language model engineering teams at Discord and D'Angelo serving as the former VP of engineering at Smile Identity, showcasing their technical expertise and industry insights.
See More
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- Transition to Cloud: Oracle has been transitioning into a cloud company for several years.
- Earnings Report: The company is at a crucial juncture as it prepares to report its third-quarter earnings.
See More
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- Stock Decline: Microsoft's stock has dropped approximately 19% in the first two months of 2026, marking its worst start since the Great Recession in 2008, reflecting market concerns over its inflated valuation.
- Valuation Adjustment: The stock now trades at a price-to-earnings ratio of 25, down from 35, which, while still above its typical growth rate of less than 20%, aligns more closely with the S&P 500 average, potentially offering a more reasonable entry point for investors.
- Strong Profitability: Over the past 12 months, Microsoft generated $119 billion in profit, indicating that despite the stock's decline, its robust financial foundation alleviates investor concerns regarding its long-term viability.
- Market Response and Investment Advice: Despite the stock's downturn, analysts remain skeptical about Microsoft's AI strategy, and the Motley Fool analyst team has not included it in their current list of top investment stocks, advising investors to consider their options carefully before purchasing.
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- Executive Stock Sale: Microsoft’s Executive Vice President of Strategy, Kathleen Hogan, sold 12,320.87 shares on March 6 at $409.52 per share, totaling $5.05 million, with no reason provided for the sale, potentially impacting market confidence negatively.
- Insider Holdings: According to Fiscal.ai, company insiders still hold about 2.4 million shares worth approximately $1.2 billion, with Chairman and CEO Satya Nadella owning 896,600 shares valued at about $451.2 million, indicating strong executive confidence in the company's future.
- Shareholder Structure: As of December 31, 2025, The Vanguard Group is the largest shareholder of Microsoft with a 9.67% stake, while BlackRock, Inc. holds 8.09%, reflecting ongoing institutional interest in the company.
- AI Product Integration: Microsoft announced the integration of AI into its Office suite with a new premium enterprise bundle priced at $99 per user per month, including tools like Copilot AI, aimed at enhancing workplace efficiency and potentially attracting more enterprise clients.
See More
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- Reasons for Decline: Microsoft's stock has dropped approximately 19% this year, with a market cap around $3 trillion, marking its worst performance since the 2008 recession, reflecting market anticipation of a potential recession and pressure from inflated valuations.
- Valuation Adjustment: Currently, Microsoft's price-to-earnings ratio is at 25 times, down from 35 times earlier this year, aligning more closely with the S&P 500 average, indicating a restoration of its investment appeal.
- Strong Profitability: Microsoft generated $119 billion in profit over the past 12 months, showcasing its robust financial foundation, and despite market challenges, it possesses diverse growth opportunities.
- Investor Opportunity: Although the stock price has declined, this presents a chance for long-term investors to purchase shares of a quality company at a lower cost, potentially leading to significant returns in the future.
See More
