Anthropic sues the US government
In response to the Pentagon’s unprecedented, punitive determination that Anthropic is a national security supply chain risk, the AI startup has sued the US government.
OpenAI is reportedly working with Pentagon to hash out guardrails amid Anthropic standoff over AI safety
OpenAI CEO Sam Altman said the company is working with the Pentagon to negotiate safety guardrails for AI models used in the battlefield, which comes as one of its top competitors, Anthropic, is at a standoff with the government.
According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”
Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”
Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.
Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.
Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.
According to a memo obtained by several media outlets, Altman told staff OpenAI believes “that AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions. These are our main red lines.”
Anthropic, the company behind the AI chatbot Claude, was one of several firms that received a $200 million contract from the Department of Defense for “agentic workflows.”
Since then, tensions between Anthropic and the Pentagon have reportedly risen as the startup insists on surveillance restrictions. The government’s attack on Venezuela last month that led to the capture of President Nicolás Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.
Anthropic has until 5:01 p.m. ET on Friday to reach a deal with the Pentagon, which has threatened consequences against the company if it doesn’t allow the government unrestricted use.
Altman’s comments come as the Financial Times reports that executives at Amazon, Google, and Microsoft are being pushed by workers to support Anthropic in its dispute with the Pentagon and adopt similar guardrails as the Claude company in any work they undertake with the US military.
Report: Anthropic CEO Amodei meeting with Hegseth at the Pentagon as tensions mount
Anthropic CEO Dario Amodei has been summoned to meet with Defense Secretary Pete Hegseth at the Pentagon on Tuesday, according to a report from Axios. Tensions are running high between the Trump administration and Anthropic, as the startup’s surveillance restrictions on the use of its AI are reportedly causing outrage within the Pentagon.
Last month’s attack on Venezuela that led to the capture of Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.
Per the report, the Pentagon is considering effectively blacklisting Anthropic’s AI from government work if it doesn’t capitulate to the administration’s terms.
Antagonizing the Trump administration could cause Anthropic to face potential regulatory hurdles as it races toward an IPO this year. The company recently hired former Microsoft CFO Chris Liddel to its board, who formerly served as deputy White House chief of staff in the first Trump administration.
Last month’s attack on Venezuela that led to the capture of Maduro reportedly involved the use of Anthropic’s Claude AI models for planning, which caused the startup to push back on the alleged violation of its terms of use.
Per the report, the Pentagon is considering effectively blacklisting Anthropic’s AI from government work if it doesn’t capitulate to the administration’s terms.
Antagonizing the Trump administration could cause Anthropic to face potential regulatory hurdles as it races toward an IPO this year. The company recently hired former Microsoft CFO Chris Liddel to its board, who formerly served as deputy White House chief of staff in the first Trump administration.
President Trump, the “Undisputed Champion of Beautiful, Clean Coal,” wants the Defense Department to start buying more of it
US total coal consumption, however, has plummeted in the last two decades.
Anthropic donates $20 million to pro-AI regulation PAC
The war to build a better AI model may be mostly happening in Silicon Valley, but now another important front has opened: Washington, DC.
Anthropic announced a $20 million donation to Public First Action, a new super PAC that advocates for AI policies and regulations that prioritize public safety. The PAC describes itself as “a counterforce that will defend the public interest against those who aim to buy their way out of sensible rule-making.”
The move is seen as a counter to OpenAI’s growing investments in PACs that argue for less AI regulation.
OpenAI recently donated to Leading the Future PAC, which has received over $50 million from the family of OpenAI president and cofounder Greg Brockman, and the VC firm Andreessen Horowitz. The PAC says it is focused on “identifying, maintaining, and growing pro-AI candidates in order to support an AI innovation policy agenda at the state and federal level.”
OpenAI’s Brockman and his wife, Anna, recently donated a total of $25 million to the pro-Trump MAGA, INC. PAC.
OpenAI recently donated to Leading the Future PAC, which has received over $50 million from the family of OpenAI president and cofounder Greg Brockman, and the VC firm Andreessen Horowitz. The PAC says it is focused on “identifying, maintaining, and growing pro-AI candidates in order to support an AI innovation policy agenda at the state and federal level.”
OpenAI’s Brockman and his wife, Anna, recently donated a total of $25 million to the pro-Trump MAGA, INC. PAC.
A new rule from the Trump administration could make it easier to dismiss senior government workers
US federal employment levels already hit a 12-year low in October.
Looking into its Warner Bros. acquisition, the DOJ probes Netflix for anticompetitive tactics
As the Department of Justice probes Netflix’s proposed $83 billion acquisition of Warner Bros. Discovery, it has reportedly subpoenaed at least one other entertainment company to investigate whether the streamer has taken part in anticompetitive behavior.
Netflix said the DOJ is conducting a standard review and it expects its acquisition to be approved.
Per Wall Street Journal reporting, the DOJ is also seeking out information on how Paramount’s proposed acquisition could harm competition in the entertainment industry.
Netflix has argued that its acquisition of WBD would not be anticompetitive, as there is an 80% overlap in Netflix and HBO Max subscribers. The company has said it competes not just with streaming services but also with broader content platforms like YouTube and TikTok for attention. Netflix booked $45.2 billion in revenue in 2025, compared to YouTube’s $60 billion.
The streamer has repeatedly said it will stick to a 45-day theatrical release window for Warner Bros. films. Movie theater trade groups have pointed out that after theatrical release, many films move to premium video on-demand (PVOD), where they can be digitally rented or purchased for several more weeks or months before moving to streaming (subscription video on-demand, or SVOD). According to Cinema United, the average SVOD window for major theatrical films is 102 days, significantly longer than the potential 45-day window for Netflix.
Per Wall Street Journal reporting, the DOJ is also seeking out information on how Paramount’s proposed acquisition could harm competition in the entertainment industry.
Netflix has argued that its acquisition of WBD would not be anticompetitive, as there is an 80% overlap in Netflix and HBO Max subscribers. The company has said it competes not just with streaming services but also with broader content platforms like YouTube and TikTok for attention. Netflix booked $45.2 billion in revenue in 2025, compared to YouTube’s $60 billion.
The streamer has repeatedly said it will stick to a 45-day theatrical release window for Warner Bros. films. Movie theater trade groups have pointed out that after theatrical release, many films move to premium video on-demand (PVOD), where they can be digitally rented or purchased for several more weeks or months before moving to streaming (subscription video on-demand, or SVOD). According to Cinema United, the average SVOD window for major theatrical films is 102 days, significantly longer than the potential 45-day window for Netflix.
Report: Meta pouring $65 million into PACs backing pro-AI state candidates
With a pro-tech, pro-AI administration in Washington, DC, Meta has decided the next battlegrounds that it needs to flood with cash are in individual states.
Starting in Meta’s home state of California, the tech giant is pledging $65 million to a pair of super PACs that it created to fund pro-tech and pro-AI candidates at the state level, according to a report from Politico.
Meta has funded the American Technology Excellence Project ($45 million) and Mobilizing Economic Transformation Across (META) California ($20 million) to push back on what it sees as burdensome AI regulations coming from state legislatures.
The META California PAC will support tech-friendly candidates regardless of party.
Starting in Meta’s home state of California, the tech giant is pledging $65 million to a pair of super PACs that it created to fund pro-tech and pro-AI candidates at the state level, according to a report from Politico.
Meta has funded the American Technology Excellence Project ($45 million) and Mobilizing Economic Transformation Across (META) California ($20 million) to push back on what it sees as burdensome AI regulations coming from state legislatures.
The META California PAC will support tech-friendly candidates regardless of party.
FTC will appeal Meta antitrust case
Only a few months after successfully defending itself from an FTC antitrust lawsuit, Meta may be heading back to court. Today, the FTC announced that it would appeal the decision, reopening a yearslong suit.
The FTC called Meta’s acquisition of Instagram and WhatsApp an illegal monopoly. The judge in the case found that in the years since the suit was first brought, the competitive landscape had changed dramatically, with Meta facing fierce competition from TikTok.
Netflix goes all-cash in bid for Warner Bros., boosting its odds
Netflix on Tuesday applied more pressure to Paramount Skydance in the ongoing bidding war for Warner Bros. Discovery, amending its offer to an all-cash proposal.
Netflix shares ticked up in premarket trading, while Paramount and Warner Bros. were down less than 1%.
The move, which was expected, does not increase the value of Netflix’s $82.7 billion offer for WBD. Netflix said shareholders will be able to vote on the deal in April.
In a Tuesday filing, Warner Bros. said that it values Discovery Global, the spin-off of its cable assets, at between $1.33 and $6.86 per share. Earlier this month, Paramount said it valued the cable TV business at $0 per share.
With Tuesday’s update, event contracts have swung even further in Netflix’s favor, with Paramount’s odds to end up in control of Warner Bros. falling to 14%. That’s below the odds for “none.”
(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)
The move, which was expected, does not increase the value of Netflix’s $82.7 billion offer for WBD. Netflix said shareholders will be able to vote on the deal in April.
In a Tuesday filing, Warner Bros. said that it values Discovery Global, the spin-off of its cable assets, at between $1.33 and $6.86 per share. Earlier this month, Paramount said it valued the cable TV business at $0 per share.
With Tuesday’s update, event contracts have swung even further in Netflix’s favor, with Paramount’s odds to end up in control of Warner Bros. falling to 14%. That’s below the odds for “none.”
(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)
Paramount doesn’t improve its offer for Warner Bros., leaving its fate to a long-shot shareholder appeal
Paramount Skydance on Thursday reaffirmed its $30-per-share offer to buy Warner Bros. Discovery, again stating that it believes the offer to be superior to rival Netflix’s.
In a press release, Paramount said its last amendment to the offer — which included a $40.4 billion personal guarantee from Larry Ellison, the father of Paramount CEO David Ellison — “cured every issue raised by WBD.”
The problem: Warner Bros.’ board on Wednesday unanimously voted to reject that offer, its sixth rejection of a Paramount takeover and second rejection of this specific $30-per-share bid. Warner’s board stated that it believes Paramount’s offer to be inferior to Netflix’s due in part to an “extraordinary amount of debt financing” and lower effective termination fees should the deal not clear the regulatory process.
By not improving the bid, Paramount is effectively leaving the deal in the hands of Warner Bros.’ shareholders, who will have to weigh the bids and the multiple rejections. Event contracts show a moderate boost in Parmount’s odds to end up in control of WBD on Thursday morning, jumping to 31% as of 9:30 a.m. ET, up from 27% at 9:00 a.m. ET.
(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)
Warner Bros. Discovery’s board tells shareholders to turn down Paramount’s “inadequate” hostile bid
Warner Bros. Discovery has told shareholders to reject Paramount’s hostile takeover bid, with the company releasing a statement early Wednesday urging shareholders to take the Netflix offer on the table. WBD’s board of directors said the outcome of the Netflix deal is “extraordinary by any measure.”
Paramount’s offer, in contrast, was described in the letter as “illusory,” providing “inadequate value,” and likely to impose “numerous, significant risks and costs on WBD.” The board said Paramount has “misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family,” and the board also outlined that it doesn’t believe there is a “material difference in regulatory risk between the PSKY offer and the Netflix merger.”
WBD shares dipped in the minutes leading up to the market close on Tuesday after news leaked that its management was preparing to encourage shareholders to reject Paramount’s bid, and shares of the HBO parent were down at $28.66, off 0.83% from yesterday’s close, as of 7:56 a.m. ET on Wednesday. Netflix was ticking higher, up around 1.7%, and Paramount Skydance was modestly in the red, down 1%.
Several outlets have reported that Jared Kushner’s firm would back out of the group that had been assembled to help finance the Paramount bid. Confirming this withdrawal, a spokesperson for the firm helmed by the president’s son-in-law told NBC News that “the dynamics of the investment have changed significantly since we initially became involved in October.”
Analysts this month have said that a renewed bidding war for Warner Bros. seems “inevitable” given the antitrust concerns surrounding Netflix’s potential acquisition. President Trump on Tuesday appeared to distance himself from speculation around his closeness to Paramount’s owners, posting on Truth Social, “If they are friends, I’d hate to see my enemies!”
Warner’s attempt to influence its shareholders could fuel a higher bid from Paramount in the coming weeks — shareholders currently have until January 8 to decide whether to accept the current offer.
Paramount’s offer, in contrast, was described in the letter as “illusory,” providing “inadequate value,” and likely to impose “numerous, significant risks and costs on WBD.” The board said Paramount has “misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family,” and the board also outlined that it doesn’t believe there is a “material difference in regulatory risk between the PSKY offer and the Netflix merger.”
WBD shares dipped in the minutes leading up to the market close on Tuesday after news leaked that its management was preparing to encourage shareholders to reject Paramount’s bid, and shares of the HBO parent were down at $28.66, off 0.83% from yesterday’s close, as of 7:56 a.m. ET on Wednesday. Netflix was ticking higher, up around 1.7%, and Paramount Skydance was modestly in the red, down 1%.
Several outlets have reported that Jared Kushner’s firm would back out of the group that had been assembled to help finance the Paramount bid. Confirming this withdrawal, a spokesperson for the firm helmed by the president’s son-in-law told NBC News that “the dynamics of the investment have changed significantly since we initially became involved in October.”
Analysts this month have said that a renewed bidding war for Warner Bros. seems “inevitable” given the antitrust concerns surrounding Netflix’s potential acquisition. President Trump on Tuesday appeared to distance himself from speculation around his closeness to Paramount’s owners, posting on Truth Social, “If they are friends, I’d hate to see my enemies!”
Warner’s attempt to influence its shareholders could fuel a higher bid from Paramount in the coming weeks — shareholders currently have until January 8 to decide whether to accept the current offer.
Senators open investigation into data centers’ effect on consumer utility bills
As Big Tech builds more and more massive data centers in small towns around the country, the public is starting to ask questions about whether they are to blame for rising utility bills.
Today Sens. Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Richard Blumenthal (D-CT) sent letters to the CEOs of some of the biggest builders of data centers: Meta, Microsoft, Amazon, Google, CoreWeave, Digital Realty, and Equinix.
The senators wrote:
“Utility companies have spent billions of dollars updating the electrical grid to accommodate the unprecedented energy demands of AI data centers and appear to recoup the costs by raising residential utility bills. Through these utility price increases, American families bankroll the electricity costs of trillion-dollar tech companies.”
Electricity prices in the US are indeed up, rising 6.2% since last year. A recent Bloomberg analysis found that ratepayers within 50 miles of data centers saw rates increase up to 276% over the past five years.
The companies have until January 12, 2026, to respond to the senators.
The senators wrote:
“Utility companies have spent billions of dollars updating the electrical grid to accommodate the unprecedented energy demands of AI data centers and appear to recoup the costs by raising residential utility bills. Through these utility price increases, American families bankroll the electricity costs of trillion-dollar tech companies.”
Electricity prices in the US are indeed up, rising 6.2% since last year. A recent Bloomberg analysis found that ratepayers within 50 miles of data centers saw rates increase up to 276% over the past five years.
The companies have until January 12, 2026, to respond to the senators.
TIME names the “Architects of AI” as its Person of the Year for 2025
TIME just announced its Person of the Year… and it’s not a single person.
The magazine selected the “Architects of AI” as its 2025 honoree, spotlighting the executives and engineers behind the year’s AI boom. One of the two covers features eight tech leaders perched on a steel beam — recreating the iconic “Lunch Atop a Skyscraper” photo from 1932 — including Meta’s Mark Zuckerberg, AMD’s Lisa Su, xAI’s Elon Musk, OpenAI’s Sam Altman, and Nvidia CEO Jensen Huang at the center, whose chips power many of today’s AI models.
As investors pick sides in Netflix vs. Paramount, analysts say a renewed Warner Bros. bidding war looks inevitable
Analysts at Bloomberg on Wednesday said Paramount’s WBD hostile takeover offer could go as high as $35 per share.
The Netflix-Warner Bros. deal now faces a wall of opposition
Netflix will owe Warner Bros. $5.8 billion in cash if the deal is terminated on antitrust grounds.
The New York Times, Chicago Tribune sue Perplexity
The New York Times is suing the AI search engine startup Perplexity, alleging repeated copyright violations.
In the complaint, the Times accuses Perplexity of scraping the company’s content and generating outputs that are “identical or substantially similar” to Times content:
“Upon information and belief, Perplexity has unlawfully copied, distributed, and displayed millions of copyrighted Times stories, videos, podcasts, images and other works to power its products and tools.”
The Times also alleges that Perplexity’s AI tool generates “hallucinations” and falsely attribute them to the Times, creating confusion that harms the company’s brand.
In a separate suit filed Thursday, the Chicago Tribune accused Perplexity of similar copyright violations.
Perplexity’s “answer engine” made early inroads in an attempt to replace traditional web searches with AI-powered responses, but its larger competitors such as OpenAI, Google, and Anthropic have been adding similar features. OpenAI recently released its own AI-powered web browser, ChatGPT Atlas, which challenges Perplexity’s Comet browser.
Jesse Dwyer, Head of Communication for Perplexity told Sherwood News in a statement:
“Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media and now AI. Fortunately it’s never worked, or we’d all be talking about this by telegraph.”
“Upon information and belief, Perplexity has unlawfully copied, distributed, and displayed millions of copyrighted Times stories, videos, podcasts, images and other works to power its products and tools.”
The Times also alleges that Perplexity’s AI tool generates “hallucinations” and falsely attribute them to the Times, creating confusion that harms the company’s brand.
In a separate suit filed Thursday, the Chicago Tribune accused Perplexity of similar copyright violations.
Perplexity’s “answer engine” made early inroads in an attempt to replace traditional web searches with AI-powered responses, but its larger competitors such as OpenAI, Google, and Anthropic have been adding similar features. OpenAI recently released its own AI-powered web browser, ChatGPT Atlas, which challenges Perplexity’s Comet browser.
Jesse Dwyer, Head of Communication for Perplexity told Sherwood News in a statement:
“Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media and now AI. Fortunately it’s never worked, or we’d all be talking about this by telegraph.”
European regulators will examine if Apple’s maps and ads businesses require stricter oversight
Apple has notified European regulators that its Apple Maps and Apple Ads platforms meet the threshold to be called “gatekeepers” under the European Commission’s Digital Markets Act, the European Commission said.
European antitrust regulators will now examine if the tech giant’s Maps and Ads units should be subject to stricter regulation. According to the DMA, when a platform reaches 45 million monthly active users and a market cap of €75 billion ($79 billion), it triggers the “gatekeeper” designation and additional rules apply.
While Apple notified regulators that the threshold has been met, it is pushing back on the designation, saying in a rebuttal to rule makers that the platforms are actually relatively small compared to the competition in Europe and should be excluded. The EC has 45 working days to make a final determination about the designation, and Apple would have six months to comply, Reuters reported.
European antitrust regulators will now examine if the tech giant’s Maps and Ads units should be subject to stricter regulation. According to the DMA, when a platform reaches 45 million monthly active users and a market cap of €75 billion ($79 billion), it triggers the “gatekeeper” designation and additional rules apply.
While Apple notified regulators that the threshold has been met, it is pushing back on the designation, saying in a rebuttal to rule makers that the platforms are actually relatively small compared to the competition in Europe and should be excluded. The EC has 45 working days to make a final determination about the designation, and Apple would have six months to comply, Reuters reported.