Pentagon Threatens to Remove Anthropic from Supply Chain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy GOOG?
Source: Benzinga
- Technology Usage Warning: Secretary of War Pete Hegseth has warned Anthropic that it could be removed from the Pentagon's supply chain if it does not commit by Friday to allowing its technology for all lawful military applications, indicating a strong government intent to control AI technology.
- Defense Production Act Threat: During a tense meeting with Anthropic CEO Dario Amodei, Hegseth threatened to invoke the Defense Production Act, which would enable the Pentagon to use Anthropic's tools without an agreement, reflecting a heightened focus on national security.
- AI Ethical Controversy: Anthropic's refusal to allow its technology for mass surveillance of Americans or the development of autonomous weapons has created a key friction point with the Pentagon, highlighting the need for clearer ethical and legal boundaries in AI applications.
- Concerns Over AI Concentration: Amodei expressed discomfort in a recent podcast regarding the rapid concentration of AI power and wealth among a few companies, warning that AI advancement is akin to an approaching “tsunami,” emphasizing the necessity for regulatory oversight of AI technologies.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 307.150
Low
255.00
Averages
336.08
High
400.00
Current: 307.150
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
Trump Demands US Agencies Cut Ties with Anthropic Amid AI Dispute
- Government Directive: President Trump has demanded that all federal agencies immediately cease using technology from generative AI company Anthropic, citing concerns that its actions jeopardize U.S. national security, indicating a tightening regulatory stance on AI technologies.
- Six-Month Phase-Out: Trump has instructed agencies like the Department of Defense to phase out their collaboration with Anthropic over six months, a decision that could significantly impact AI projects related to national defense and necessitate major adjustments in the technology supply chain.
- Anthropic's Position: The CEO of Anthropic stated that the company cannot allow the Department of Defense to use its models without limitations, emphasizing the substantial value of its technology to the military, which indicates the company's firm stance in ongoing negotiations with the government.
- Pentagon's Ultimatum: The Department of Defense has issued a final offer to Anthropic, demanding agreement on the use of its models for all lawful purposes, with potential consequences of being labeled a “supply chain risk” if compliance is not met, reflecting the government's stringent requirements for AI technology.
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Trump Demands US Agencies Cut Ties with Anthropic Amid AI Dispute
- Government Directive: President Trump has demanded that all federal agencies immediately cease using technology from generative AI company Anthropic, citing concerns that its actions jeopardize U.S. national security, indicating a tightening regulatory stance on AI technologies.
- Six-Month Phase-Out: Trump has instructed agencies like the Department of Defense to phase out their collaboration with Anthropic over six months, a decision that could significantly impact AI projects related to national defense and necessitate major adjustments in the technology supply chain.
- Anthropic's Position: The CEO of Anthropic stated that the company cannot allow the Department of Defense to use its models without limitations, emphasizing the substantial value of its technology to the military, which indicates the company's firm stance in ongoing negotiations with the government.
- Pentagon's Ultimatum: The Department of Defense has issued a final offer to Anthropic, demanding agreement on the use of its models for all lawful purposes, with potential consequences of being labeled a “supply chain risk” if compliance is not met, reflecting the government's stringent requirements for AI technology.
See More
Investment Outlook for Hydrogen and Nuclear Energy
- Hydrogen Infrastructure Development: Plug Power has deployed 230 megawatts of GenEco electrolyzers globally, focusing on hydrogen infrastructure, yet despite a 13% year-over-year revenue increase in Q3 2025, it faces an operating loss of $704.1 million, indicating insufficient profitability.
- Hydrogen Supply Capacity: The company supplies 45 tons of hydrogen daily to major clients like Amazon, Home Depot, and General Motors, but with $991.4 million in debt against only $165.9 million in cash, its financial health appears precarious.
- Nuclear Energy Investment Opportunity: NextEra Energy, as America's largest electric utility, reported a net income of $2.97 billion in 2025, up 29.4%, and projects an 8% compound annual growth rate in earnings per share through 2035, showcasing strong growth potential in the green energy sector.
- Comparison of Nuclear and Hydrogen: While hydrogen holds promise, nuclear energy emerges as a more attractive investment due to its profitability and stable dividend (increased for 31 consecutive years), currently yielding 2.4%, reflecting its long-term investment value.
See More
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- Hydrogen Market Potential: PlugPower has deployed 230 megawatts of GenEco electrolyzers globally, and while its Q3 2025 revenue grew by 13% year-over-year, its operating loss reached $704.1 million, indicating that its growth is insufficient to offset significant losses, thus increasing investment risk.
- Nuclear Revival Plan: NextEra Energy is partnering with Alphabet to restart the Duane Arnold nuclear power plant in Iowa, projected to be operational by Q1 2029, which will supply power to Alphabet for the next 25 years, showcasing its strategic positioning in the green energy sector.
- Financial Performance Comparison: NextEra reported a net income of $2.97 billion in 2025, a 29.4% increase year-over-year, with earnings per share (EPS) growing by 28.5%, while PlugPower faces a staggering $991.4 million in debt, highlighting NextEra's stronger financial health.
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See More
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- Increased Stock Volatility: Figma shares fell 3.08% to $29.29 on Friday afternoon, continuing this week's volatility amid a broad market selloff, indicating investor concerns over richly valued tech stocks.
- Competitive Threats Emerge: Google's free tool Gemini poses a risk to Figma's market position by potentially shifting some AI-driven design workflows away from its platform, raising concerns about monetization and pricing power.
- Earnings Beat Expectations: Despite the pressures, Figma reported quarterly revenue of $303.78 million earlier this month, exceeding Wall Street estimates and growing 39.93% from $216.95 million a year ago, showcasing the company's ongoing expansion in AI integrations.
- Analyst Ratings Remain Steady: Despite the recent stock decline, Figma maintains a Buy rating with an average price target of $33.40, as analysts express neutral to overweight ratings, reflecting confidence in its strong growth and AI roadmap.
See More
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- Ackman's Investment Moves: Bill Ackman, through Pershing Square Capital Management, initially invested in Alphabet in early 2023 but reduced his Class A holdings by 86% and Class C by 2% in Q4, indicating a reassessment of AI stocks.
- Amazon Position Increase: Ackman increased his Amazon holdings by 3.8 million shares in Q4, bringing the total to 9.6 million shares, primarily due to Amazon's 28% market share in cloud computing and its proprietary chip development, highlighting its potential in the AI ecosystem.
- Meta's AI Potential: Pershing Square added 2.7 million shares of Meta in Q4, and despite skepticism about Meta's AI prospects, its Advantage+ product is reportedly generating a $60 billion annual revenue run rate, indicating strong advertising ROI potential.
- Market Opportunities and Risks: Although Amazon and Meta have seen significant valuation corrections recently, Ackman's investment strategy suggests that both companies may offer substantial long-term growth potential in the AI sector for investors willing to buy the dip.
See More
Comfort Systems USA: Surge in AI Data Center Demand
- Significant Revenue Growth: Comfort Systems USA's revenue from data center work increased from 33% to 45% year-over-year, indicating strong growth potential in the AI data center sector, which is expected to further drive revenue increases in the future.
- Strong Market Demand: While overall U.S. manufacturing construction spending is declining, Comfort Systems USA's technology and industrial spending accounted for 67% of its volume in 2025, demonstrating the company's successful positioning in high-demand areas.
- Increased Backlog: The current backlog reflects demand for mechanical and electrical systems, with the CFO noting these are late-cycle investments, suggesting a significant revenue influx in the coming years, particularly from spending commitments by major tech companies.
- Optimistic Earnings Outlook: Wall Street forecasts that Comfort Systems USA's earnings per share will grow by 69% from $28.88 in 2025 to $48.92 in 2028, highlighting the company's attractiveness to investors focused on the AI data center spending theme.
See More
