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Jon Keegan

Anthropic offers Claude AI to federal agencies for $1

Earlier this month, OpenAI announced that it was offering ChatGPT Enterprise to US federal agencies for $1 in a yearlong deal with the General Services Administration.

Today, Anthropic is following suit with a similar deal. Claude for Enterprise and Claude for Government will be made available through the General Services Administration for $1 per agency across all three branches of government for “sensitive unclassified work.”

The Financial Times is reporting that Google was in talks to mint a similar deal.

Anthropic, OpenAI, xAI, and Google have all received contracts from the Department of Defense for up to $200 million each to use those companies’ AI for national security and defense applications. Late last year, Anthropic announced a partnership with Palantir to deploy the company’s Claude tool to the “defense and intelligence communities” inside the US government.

The low, low price that these companies are offering government agencies seems intended to induce workers to rely on AI tools before converting that reliance to juicy federal contracts when the limited-time offer expires. The promotional strategies with federal agencies come as tech companies and startups are desperately seeking a path to profitable AI while they burn piles of cash building infrastructure.

The Financial Times is reporting that Google was in talks to mint a similar deal.

Anthropic, OpenAI, xAI, and Google have all received contracts from the Department of Defense for up to $200 million each to use those companies’ AI for national security and defense applications. Late last year, Anthropic announced a partnership with Palantir to deploy the company’s Claude tool to the “defense and intelligence communities” inside the US government.

The low, low price that these companies are offering government agencies seems intended to induce workers to rely on AI tools before converting that reliance to juicy federal contracts when the limited-time offer expires. The promotional strategies with federal agencies come as tech companies and startups are desperately seeking a path to profitable AI while they burn piles of cash building infrastructure.

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Amazon cuts another 16,000 roles, after laying off 14,000 workers in October

Amazon announced Wednesday that it was cutting 16,000 roles across the company, having laid off 14,000 workers only ~3 months ago.

“As I shared in October, we've been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Senior Vice President of People Experience and Technology Beth Galetti wrote in a press release. “While many teams finalized their organizational changes in October, other teams did not complete that work until now.”

CEO Andy Jassy previously said that the October layoffs were “about culture” rather than AI-related cost cutting. Galetti says layoffs, now totaling 30,000, won’t become a regular occurrence.

“Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan.”

CEO Andy Jassy previously said that the October layoffs were “about culture” rather than AI-related cost cutting. Galetti says layoffs, now totaling 30,000, won’t become a regular occurrence.

“Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan.”

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Anthropic reportedly doubles current fundraising round to $20 billion

Anthropic has doubled its current fundraising round to $20 billion on strong investor demand, according reporting from the Financial Times. The new fundraising round would value the company at a staggering $350 billion. That’s up 91% from September, when it raised at a valuation of $183 billion.

The company reportedly received interest totaling 5x to 6x its original $10 billion fundraising goal, and it’s expected to haul in several billion more than that tally before the current round closes.

Anthropic’s success with enterprise customers and the popularity of its Claude Code product are boosting the company’s momentum as it chases the current valuation leader of the AI startup pack: OpenAI.

The company reportedly received interest totaling 5x to 6x its original $10 billion fundraising goal, and it’s expected to haul in several billion more than that tally before the current round closes.

Anthropic’s success with enterprise customers and the popularity of its Claude Code product are boosting the company’s momentum as it chases the current valuation leader of the AI startup pack: OpenAI.

Produce At Whole Foods Market's Flagship Store

Amazon says it’s doubling down on opening Whole Foods stores. That sounds familiar.

The company says it’ll open 100 Whole Foods locations in the next few years. That sounds similar to plans Whole Foods’ CEO laid out in 2024 for opening 30 stores a year. Since then, it appears to have added 14, total.

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