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Jerome Powell and Sam Altman Speak At Federal Reserve's Regulatory Capital Framework Conference
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OpenAI’s Altman: Our rushed deal with the Pentagon “looked opportunistic and sloppy”

OpenAI CEO Sam Altman shared an internal memo in which he expressed some regrets for the bad optics of the company’s hasty deal with the Pentagon, and outlined new additions that were made to the agreement.

The fallout from Anthropic’s messy breakup with the US government, and OpenAI’s hasty deal to take its place, is still settling across the AI industry.

Last night, OpenAI CEO Sam Altman shared an internal post on X in which he expressed some regrets about how the deal came to be as well as some new additions to the agreement.

The new conditions centered around the mass surveillance of Americans, one of the key issues that blew up Anthropic’s deal with the Pentagon.

Altman said they added language to clarify that, in accordance with the Fourth Amendment and laws already on the books, “the AI system shall not be intentionally used for domestic surveillance of U.S. persons and nationals.” The rub is that the scale and reach of data collection today, in pretty much every corner of our life, lets anyone — including the government — buy massive amounts of sensitive data that can be used for surveillance without getting a warrant.

Altman acknowledges this gaping loophole in personal privacy protections, and also included this language:

“For the avoidance of doubt, the Department understands this limitation to prohibit deliberate tracking, surveillance, or monitoring of U.S. persons or nationals, including through the procurement or use of commercially acquired personal or identifiable information.”

This exact issue is one that Anthropic CEO Dario Amodei flagged in a post last week as he outlined the company’s red lines surrounding the government’s use of its AI tools.

Altman also acknowledged the bad optics surrounding the last-minute deal as the Trump administration attacked Anthropic. Altman said they shouldn’t have rushed to do the deal, saying, “It just looked opportunistic and sloppy.”

But where does this leave things? It seems that Altman was able to get the same deal that Anthropic was fighting for. Meanwhile, Anthropic faces a potential catastrophic blacklisting that could cripple countless partnerships and investments.

In the post, Altman said he told the Pentagon that Anthropic should not be designated as a “supply chain risk,” and hoped that it would be offered the same deal that OpenAI ended up with.

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Apple updates Mac chips and amps up AI claims

Apple’s new M5 Pro and M5 Max chips are the latest step in its steady silicon march: faster CPUs, stronger graphics, more memory bandwidth. The 30% CPU performance increase is meaningful but incremental — not the kind of leap that accompanied the original M1 transition from Intel.

What’s more notable is how aggressively Apple is framing this around AI. The company is touting up to 4x higher peak GPU compute for AI workloads and the ability to run larger models locally, leaning hard into the on-device AI narrative as it positions the MacBook Pro as a more capable personal AI development machine.

It may be paying off in unexpected ways, as the explosion of interest in roll-your-own AI agents like Moltbot have made low-cost Macs like the MacMini a hot item.

It may be paying off in unexpected ways, as the explosion of interest in roll-your-own AI agents like Moltbot have made low-cost Macs like the MacMini a hot item.

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Claude is still top of the US free App Store, as users defect from ChatGPT following Pentagon deal

Last Friday, President Trump directed federal agencies to cease using all Anthropic products owing to its very messy, very public dispute with the Department of War (née Defense), which had centered around the potential US military use of its AI. Just a day later, OpenAI announced that it had made an agreement to supply artificial intelligence to the Pentagon.

It didn’t take long for consumers to respond to news of the deal, which OpenAI CEO Sam Altman has now conceded looked “opportunistic and sloppy” in a post on X. Uninstalls of the ChatGPT mobile app jumped 295% on Saturday from the day before, according to figures from Sensor Tower reported by TechCrunch, as fears around the since-amended agreement’s privacy implications grew.

Claude ChatGPT downloads Feb chart
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After tussle with Pentagon, Anthropic’s $60 billion worth of recent investments might be at risk

The fallout from Anthropic’s dramatic split from the Pentagon is still being measured. For a domestic company to be labeled a “supply-chain risk to national security” by the US defense secretary is unprecedented, as Anthropic noted in a post responding to Defense Secretary Pete Hegseth’s tweet.

Making it even more shocking is the fact that Anthropic appeared to be on track to have one of the largest and most anticipated tech IPOs in American history.

Axios’ Dan Primack writes that the $60 billion in venture capital Anthropic just raised last month could very well be at risk. Primack argues that investors may get cold feet now that the company has run afoul of the Trump administration, and it faces significant uncertainty as the industry waits to see what official acts follow Hegseth’s words.

Making it even more shocking is the fact that Anthropic appeared to be on track to have one of the largest and most anticipated tech IPOs in American history.

Axios’ Dan Primack writes that the $60 billion in venture capital Anthropic just raised last month could very well be at risk. Primack argues that investors may get cold feet now that the company has run afoul of the Trump administration, and it faces significant uncertainty as the industry waits to see what official acts follow Hegseth’s words.

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