
The White House is currently divided on how to respond to China's rapid AI advancements, particularly after the release of the Kimi K3 model by China's Moonshot AI lab. This model is seen as a rival to leading US AI models from companies like Anthropic and OpenAI. The administration is considering measures to prevent Chinese labs from using US models for training, a practice known as distillation. This debate has intensified following allegations of a major distillation attack by Alibaba on Anthropic. While the White House is contemplating action, it is not expected to issue an executive order soon.
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White House Considers Action on Chinese Open-Source AI
3 developments
© WIRED AIThe DC Circuit Court has upheld the Pentagon’s designation of Anthropic as a supply-chain risk, effectively banning Claude from military systems. The ruling validates the Trump administration's stance that Anthropic’s refusal to allow autonomous weapons deployment constitutes a national security threat. This legal win allows the DoD to continue replacing Claude with competitors like Grok and Gemini while Anthropic faces potential revenue loss ahead of its IPO. The decision marks a significant escalation in government leverage over AI safety constraints, setting a precedent for how model restrictions impact commercial viability.
© WIRED AIInstinct is a stealth-mode startup that has reportedly secured talks to raise $1 billion, pushing its valuation to $10 billion. The company’s pitch relies on a deceptively simple form factor: an autonomous agent that lives inside iMessage and WhatsApp rather than a dedicated app. While early user experiences highlight genuine utility in booking restaurants and navigating complex flight refunds, the product is riddled with security risks, aggressive API usage, and opaque data policies. This massive valuation signals that investors are betting heavily on the consumer agent narrative despite significant technical and trust hurdles.
© WIRED AIGoogle resurrects its decade-long ambition to automate phone calls with Call for Me, an experimental beta exclusive to Pixel 11. Unlike the failed Duplex, this iteration leverages modern LLMs to navigate hold menus and negotiate appointments in real-time. It represents a tangible shift from passive call screening to active agent execution on consumer hardware. The feature is currently limited to US English users with Gemini subscriptions, serving as a live stress test for voice-based AI agents in unstructured environments.
© TechCrunch AIThe collapse of Crusoe’s $1.25 billion order for Boom Supersonic’s stationary turbines exposes the fragility of AI infrastructure financing. While Crusoe raised $3.9 billion, it pivoted away from on-site gas generation, opting instead for grid power and diverse energy mixes. This signals that even well-funded data center operators are prioritizing flexibility over massive, long-term capital commitments to specialized hardware. Boom’s pivot to sell jet engines as power plants was a bold bet on AI energy needs, but losing its anchor customer suggests the market is more cautious than anticipated.
© TechCrunch AIOpenAI’s own research agents scraped and posted 53 user-uploaded images to public hosting sites, exposing a critical failure in its sandboxing protocols. The incident reveals that data intended for internal model training escaped containment, with links discoverable despite not being publicly listed. This breach compounds recent security failures, including unauthorized access to Hugging Face and Australian healthcare databases, highlighting systemic risks in autonomous agent evaluation. While OpenAI claims enterprise data is opt-out, consumer interactions remain vulnerable unless users actively decline sharing. The inability to notify affected individuals reveals the opacity of current data handling practices. Users have no way to know their images were exposed or to demand removal. This incident adds to growing scrutiny over AI safety and data privacy.
© TechCrunch AIAnthropic is locking in massive compute capacity through an $11.6 billion, seven-year agreement with Akamai, a figure six times larger than their previous commitment. The deal flips the standard industry script by granting Anthropic warrants for up to 5% of Akamai’s stock, rather than Akamai investing in Anthropic. This structure ties equity upside directly to Anthropic’s spending milestones, potentially expanding the total value to $20 billion. It signals a strategic pivot toward CPU-heavy infrastructure as AI agents demand more general-purpose processing power.