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skynet terminator
Scene from the 1991 movie “Terminator 2: Judgment Day” (CBS/Getty Images)

Anthropic ponders self-improving AI

Anthropic says Claude already writes 80% of its code. A new post asks what happens when the models can improve themselves — and whether anyone could stop them.

As AI models rapidly improve at writing code, the role of humans in the process of software development is shifting to one of merely oversight and direction. Anthropic says that as of May 2026, Claude has written up about 80% of its internal code.

But what happens when the AI models don’t need humans any more, and the models can write the code to improve themselves autonomously?

This concept — known as recursive self-improvement — is currently getting a lot of attention in the AI industry. The risks of losing control of an AI system as it exponentially improves itself to the detriment (and attempted extermination) of humans is what happened with Skynet in The Terminator.

Anthropic ponders this concept in a long blog post authored by Marina Favaro and Jack Clark of the Anthropic Institute, which checks in on how far along the company’s models might be to something that looks like recursive self-improvement and how this could play out.

Models are rapidly improving

The authors wrote that across the industry, AI leaderboards are seeing consistent high scores from models “saturate” key coding benchmarks like SWE-bench. The models are now able to do bigger, more complex tasks — Claude Opus went from handling four-minute software tasks in 2024 to tackling 12-hour tasks in 2026.

Anthropic engineers are experiencing this dramatic shift in their work, according to a developer quoted in the post:

“I started leaning hard into Claudifying about a year ago. That’s been a crazy adventure and it’s now been ~5 months since I last wrote any code myself.”

The post includes a compelling chart showing a steady rise in lines of Claude-created internal code starting last year, followed by a steep jump with the arrival of Mythos. Not only was it written mostly by AI, but the quality of the code is expected to surpass human developers this year.

Anthropic chart - code contributed per person by quarter
The amount of code generated by AI within Anthropic has rapidly increased this year (Anthropic)

Humans have better “research taste”

The paper cites several key areas where Claude has excelled: it is very good at finding bugs in older code, it can be used to quickly diagnose and fix live system failures, and it can set up iterative code-rewriting loops that are currently able to speed up software around 52x on average (using Mythos).

In one example cited in the post, Claude made 800 fixes to an API, drastically reducing errors — work that would have taken a human engineer an estimated four years. This is the kind of work that would probably not even have been done in the first place, the authors added.

But humans appear to still have the edge in designing the crucial AI tests and experiments that help move AI forward. Humans have better “research taste,” though Claude is getting better at this, the paper notes.

Existential questions

Some of Anthropic’s developers seem to be grappling with existential issues related to their work. One employee was quoted as saying:

“On days where everything works well, I can’t help but think nothing I do matters, everything is automated and better and faster than I ever will be. But then there are days where everything breaks and I dont understand why and I realize I have no idea what I’ve been up to anymore.”

Maybe it can’t happen

The authors frankly acknowledge that such self-improving systems might not even be possible. Human guidance has led to all of the breakthroughs to date, thanks to all those clever experiments we designed. Maybe AI is just a very useful tool for speeding up repetitive testing of the ideas we have — scale, fix, repeat.

So are we headed toward a world of self-improving AI models that we can’t keep an eye on? Anthropic is basically saying, we don’t really know. Super advanced AI systems could cure disease and power helpful robots, but it could also lead to other unforeseen negative consequences.

The authors lay out three possible scenarios for how they think this could play out:

1. Things could plateau: Supply chain constraints for data centers, chips, or electricity could preclude the next big leap in computing. Or maybe the crazy, consistent scaling we have seen just stops working.

2. Continued gains going forward: The most likely scenario described by the authors predicts that the work will essentially continue at pace, seeing “compounding efficiency gains.” But as code writing speeds up, human code review would still be a major bottleneck.

3. AI starts to build — and improve — itself: With humans largely out of the loop, the only constraint will be physical infrastructure and energy. Self-improving AI systems might decide to halt AI development, but they also could become “misaligned” with human safety:

“The rare occurrences of misalignment present in today’s models could compound as the models build their successors, growing more frequent but less understood until we lose control of them.”

Slow it down?

As to what the industry should do at this moment as it hurls into uncertainty, the paper offers some ways forward.

The authors considered the growing call to simply slow down AI development, to make sure the technology is used for good:

“If it were possible to effectively slow the development of this technology to give ourselves more time to deal with its immense implications, we think that would likely be a good thing.”

This would require a kind of global coordination that seems increasingly unlikely given today’s geopolitical problems. But even if we all could agree on what a pause might look like, bad actors could use that pause to level up their attacks, the authors argued.

A verification regime like a nuclear weapons treaty could serve as a model for international cooperation to regulate responsible development of self-improving systems, but AI moves much faster than the pace of decades-long diplomacy. As the authors wrote: “We don’t have that long.”

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FT: Anthropic staff helping the NSA use Mythos for offensive cyberattacks

Anthropic’s Mythos AI model was deemed too dangerous to release to the public, with the company citing its ability to orchestrate novel cyberattacks.

And that’s just what the National Security Agency is doing, with the help of Anthropic staff embedded at the agency, according to a report from the Financial Times.

Only a small number of companies and US allies have been given access to the advanced model, which means America’s adversaries have not had the chance to shore up their defenses against the AI model’s new offensive capabilities.

The arrangement is especially unusual as the Pentagon has deemed Anthropic’s AI a national security supply chain risk — effectively blacklisting it for defense work — in response to the company’s refusal to allow its technology to be used for any legal application, which could include autonomous killing or mass surveillance. Anthropic is currently suing the US government to fight the determination.

Only a small number of companies and US allies have been given access to the advanced model, which means America’s adversaries have not had the chance to shore up their defenses against the AI model’s new offensive capabilities.

The arrangement is especially unusual as the Pentagon has deemed Anthropic’s AI a national security supply chain risk — effectively blacklisting it for defense work — in response to the company’s refusal to allow its technology to be used for any legal application, which could include autonomous killing or mass surveillance. Anthropic is currently suing the US government to fight the determination.

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Longtime Tesla bear JPMorgan upgraded Tesla and raised its price target to $475 from $145

For more than a decade, JPMorgan was Wall Streets most stubborn Tesla skeptic, anchored by auto analyst Ryan Brinkman’s strict focus on traditional car fundamentals and near-term delivery numbers.

But JPM recently handed coverage of the stock to a new analyst, Rajat Gupta, who is throwing that playbook out the window. In a note Friday, the firm upgraded Tesla to neutral from underweight and raised its price target 228% to $475 from $145. (The analyst consensus on FactSet is $403.) Instead of focusing on the company’s struggling vehicle business, the new analyst is orienting himself more toward Tesla’s idea of the future, now modeling Tesla’s physical AI and robotaxi fleets all the way out to the year 2040.

Here are the main reasons for the capitulation:

  • Looking past the car lot: Gupta argues that Tesla is at the forefront of physical AI, entering uncharted TAMs” and therefore deserves the benefit of the doubt to be valued on LT earnings potential rather than near-term speed bumps.

  • Unmatched vertical integration: Teslas control over everything from battery cells to custom silicon gives it a massive moat. JPM notes this starting point advantage is unmatched at an industrial level scale” and “still somewhat under-appreciated and misunderstood.

  • The AWS flywheel effect: Deploying Optimus robots inside its own factories should not only lower COGS for the base automotive business, but more importantly, help validate the product at an industrial scale.” Gupta called it “a classic flywheel effect, somewhat analogous to AWS and Kiva at AMZN.

For Tesla bulls who have argued for years that this is an AI company and not a carmaker, JPM’s sudden $3.9 trillion valuation model is the ultimate validation.

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ChatGPT hit 1 billion users nearly twice as fast as TikTok did

It took Facebook and Instagram around eight years; it took YouTube just over six; even TikTok, which at the time felt like it was a global sensation almost as soon as it arrived, took more than half a decade.

Now, though, the mobile version of ChatGPT has positively left the biggest platforms (and all of your other favorite apps) in the dust, hitting 1 billion monthly active users in just three years, per new data from market intelligence firm Sensor Tower, as more users turn to OpenAI’s chatbot each month.

ChatGPT 1 billion users chart
Sherwood News

While rival Anthropic might be pulling ahead in terms of annualized recurring revenue, enterprise customer adoption, and valuation, the app version of Claude, a market-leading chatbot on several counts, has clocked only 56 million monthly active users in the quarter to date.

In fact, according to Abe Yousef, a senior insights analyst at Sensor Tower, ChatGPT’s monthly active user count for the quarter to date outweighs the figures for Claude, Gemini (472 million), Doubao (106 million), Dola (78 million), DeepSeek (68 million), Meta AI (61 million), Grok (50 million), Perplexity (44 million), and Copilot (31 million)... combined.

ChatGPT made a pretty big splash in the tech world when it landed toward the end of 2022, but there’s no question that the mobile versions — which launched on iOS in May 2023, then on Android a couple months later — helped to catapult the chatbot into the mainstream proper.

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