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Jon Keegan

Google, xAI, Anthropic, and OpenAI each receive $200 million contracts from Department of Defense

The Department of Defense is spending $800 million on “agentic AI workflows” and most of the big players are getting a slice of the pie. Google, OpenAI, Anthropic and xAI all received awards capping out at $200 million each to help deploy AI in national security applications.

The xAI award comes less than a week after an embarrassing episode where xAI’s chabot, Grok, spewed antisemitic posts praising Hitler after it was given instructions to not shy away from “politically incorrect claims.”

This is just another big bucket of government AI contracts, and there will be many more.

President Trump’s new tax bill carves out over $6 billion for border technologies (and a nice AI tower monopoly for Anduril), OpenAI received an earlier $200 million contract from the DOD, Anthropic is teaming up with Palantir to deploy AI in the battlefield, and Anduril is teaming up with both Meta and Microsoft for various VR headsets for the military.

Meta, OpenAI, and Palantir even have executives who have received commissions from the Army to help further develop a new AI-powered military industrial complex.

In a press release announcing the contracts, Chief Digital and AI Officer Dr. Doug Matty wrote:

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries.”

The xAI award comes less than a week after an embarrassing episode where xAI’s chabot, Grok, spewed antisemitic posts praising Hitler after it was given instructions to not shy away from “politically incorrect claims.”

This is just another big bucket of government AI contracts, and there will be many more.

President Trump’s new tax bill carves out over $6 billion for border technologies (and a nice AI tower monopoly for Anduril), OpenAI received an earlier $200 million contract from the DOD, Anthropic is teaming up with Palantir to deploy AI in the battlefield, and Anduril is teaming up with both Meta and Microsoft for various VR headsets for the military.

Meta, OpenAI, and Palantir even have executives who have received commissions from the Army to help further develop a new AI-powered military industrial complex.

In a press release announcing the contracts, Chief Digital and AI Officer Dr. Doug Matty wrote:

“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries.”

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

Amazon announced Wednesday that its cutting 16,000 roles across the company, having laid off 14,000 workers only three months ago.

“As I shared in October, weve 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 the 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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