Trump Directs to Cease Use of Anthropic Technology

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.CEASE ALL USE:In a post on Truth Social, President Donald Trump said that "leftwing nut jobs" at AI company Anthtropic have made a mistake trying to "strong-arm" the Department of War and "force them to obey their Terms of Service instead of our Constitution." The Fly notes that Anthropic said Thursday that the company "cannot in good conscience" allow the Pentagon to use its models in lawful cases without limitation. "Therefore, I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology," Trump posted. "We don't need it, we don't want it, and will not do business with them again! There will be a Six Month phase out period for Agencies like the Department of War who are using Anthropic's products, at various levels. Anthropic better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow."Meanwhile, Anthropic said in a statement, "Secretary of War Pete Hegseth shared on X that he is directing the Department of War to designate Anthropic a supply chain risk. This action follows months of negotiations that reached an impasse over two exceptions we requested to the lawful use of our AI model, Claude: the mass domestic surveillance of Americans and fully autonomous weapons. We have not yet received direct communication from the Department of War or the White House on the status of our negotiations. We have tried in good faith to reach an agreement with the Department of War, making clear that we support all lawful uses of AI for national security aside from the two narrow exceptions above. To the best of our knowledge, these exceptions have not affected a single government mission to date. We held to our exceptions for two reasons. First, we do not believe that today's frontier AI models are reliable enough to be used in fully autonomous weapons. Allowing current models to be used in this way would endanger America's warfighters and civilians. Second, we believe that mass domestic surveillance of Americans constitutes a violation of fundamental rights. Designating Anthropic as a supply chain risk would be an unprecedented action-one historically reserved for US adversaries, never before publicly applied to an American company. We are deeply saddened by these developments. As the first frontier AI company to deploy models in the US government's classified networks, Anthropic has supported American warfighters since June 2024 and has every intention of continuing to do so. We believe this designation would both be legally unsound and set a dangerous precedent for any American company that negotiates with the government. No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons. We will challenge any supply chain risk designation in court."AI-LOADED SOFTWARE BUNDLE FOR 365:Microsoftis weighing releasing its long-rumored E7 enterprise productive software bundle, a more expensive AI-loaded version of Microsoft 365, Business Insider's Ashley Stewart, citing two people familiar with the plans. The bundle, which could cost up to $99 per user per month, could include Microsoft Copilot and its new AI agent hub, known as Agent 365, the author notes.PARTNERSHIPS:Nvidiaannounced multiyear strategic agreements with Lumentumto accelerate innovation in advanced optics technologies, including research and development, to enable next-generation AI infrastructure and systems designs. The nonexclusive agreement includes a Nvidia multibillion purchase commitment and future capacity access rights for advanced laser components. In addition, Nvidia is investing $2B in Lumentum to support R&D, future capacity and operations as the company builds out its U.S.-based manufacturing capabilities in a new fab.Nvidia and Coherentannounced a multi-year strategic agreement to advance the frontier of advanced optics technologies, including manufacturing capacity and research and development, to enable next-generation AI infrastructure. The nonexclusive agreement includes an Nvidia multibillion-dollar purchase commitment and future access and capacity rights for advanced laser and optical networking products. In addition, Nvidia is investing $2B in Coherent to support research and development, future capacity and operations as Coherent builds out its U.S.-based manufacturing capabilities.INFERENCE COMPUTING:Nvidia intends to reveal a new processor meant to help OpenAI and other customers build more efficient tools, Berber Jin, Robbie Whelan, and Keta Clark of The Wall Street Journal. The new system will be for "inference" computing, processing that allows AI models to respond to queries, the Journal adds, citing people familiar with the plans. The new platform will incorporate a chip designed by Groq, the sources added.