Alex Ossola

Trump's announcement appears to indicate that the administration is canceling Anthropic's contract with the Pentagon, which is worth up to $200 million.

Anthropic didn't immediately respond to a request for comment.

I spoke earlier today with WSJ tech policy reporter Amrith Ramkumar.

Amrith, let's start with some basics here.

What does the Defense Department use AI for?

And walk us through this dispute Anthropic is having with the Defense Department.

A group of senators focused on defense have asked the two sides to reach a compromise.

But what is it that Anthropic doesn't want Claude used for?

Right.

Altman said that OpenAI was working on a possible deal with the Pentagon which could help solve the impasse with Anthropic.

Here's what he said about the situation this morning on CNBC.

Amrit, there have been tensions between the Trump administration and Anthropic for a while, right?

You mentioned the Pentagon has also approved XII's Grok tool for use in classified information recently.

But you've reported that some government officials are warning against that use.

Why is that?

And we should note that Musk and XAI didn't respond to requests for comment.

That was WSJ Tech Policy Reporter Amrith Ramkumar.

Thanks, Amrith.

In other AI news, OpenAI says it's raised $110 billion in new funding.

The financing includes $30 billion from SoftBank, a $50 billion commitment from Amazon, and $30 billion from Nvidia.