tech

8/12/25

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.

Offering expanded Claude access across all three branches of government

Offering expanded Claude access across all three branches of government

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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Claire Yubin Oh

24m

Nebius soars after signing a five year deal with Microsoft to supply nearly $20 billion worth of AI computing power

Artificial intelligence infrastructure group Nebius jumped more than 50% in early trading on Tuesday after the company announced a major deal to supply computing power for Microsoft’s AI operations.

Under the agreement, Nebius will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The total contract value through 2031 is $17.4 billion, although, if further capacity is required, the contract value could rise to $19.4 billion.

The deal is a sizable portion of Microsoft's proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.

Nebius announces multi-billion dollar agreement with Microsoft for AI infrastructure

Nebius announces multi-billion dollar agreement with Microsoft for AI infrastructure

Under the agreement, Nebius will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The total contract value through 2031 is $17.4 billion, although, if further capacity is required, the contract value could rise to $19.4 billion.

The deal is a sizable portion of Microsoft's proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.

President Trump hosts tech executives and their guests to a dinner at the White House in the Oval Office.

Here are the Trump ties among the tech leaders who had dinner at the White House

Many of the attendees have donated to, vocally supported, or even worked for the president.

tech

19h

Tesla’s EV market share declined to 38% in August

In August, Tesla’s share of the US EV market fell to 38%, according to new data from Cox Automotive reported by Reuters. Tesla’s market share fell below 50% for the first time last year, as competitors’ EVs began hitting the market. Now, as Tesla’s own sales slip more drastically than they had last year, it’s giving up even more ground. Tesla’s market share fell from 48.7% in June to 42% in July to 38% in August, according to Reuters. That slide has come even as buyers rushing to take advantage of the federal tax credit that ends this month provide a near-term boon for sales at Tesla and other EV makers.

21h

OpenAI now expects to burn around $115 billion through 2029 — a full $80 billion higher than the company had previously estimated, The Information reports.

Just how much is that? It’s roughly equivalent to:

Fortunately for OpenAI, which is raising money at a $500 billion valuation, its revenue is also growing faster than expected. The ChatGPT maker now expects to make $13 billion in revenue this year and $200 billion in 2030.

An annotated photo of who attended the tech dinner at the White House.

An interactive who's-who of the tech execs at Trump's White House dinner

The White House invited a gaggle of top founders and tech executives for an intimate dinner at the White House.

Jon Keegan9/5/25

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