Alex Ossola

Plus, U.S.

stocks rise after Meta and AMD announce a $100 billion chip deal.

and what lawmakers are doing to address the housing affordability crisis.

It's Tuesday, February 24th.

I'm Alex Osola for The Wall Street Journal.

This is the PM edition of What's News, the top headlines and business stories that move the world today.

A meeting today between Defense Secretary Pete Hegseth and Anthropic CEO Dario Amadei ended in an ultimatum.

Anthropic has until Friday to comply with the Pentagon's demands on using its artificial intelligence models, or the company's contract will be canceled.

That's according to people familiar with the matter.

The people said that if Anthropic doesn't show more flexibility working with the military, Hegseth said that he could label the company a supply chain risk.

a move typically reserved for overseas companies linked to foreign adversaries.

Or he said he could invoke the Defense Production Act to essentially force the company to work more collaboratively with the Pentagon.

Experts have said that either move would be nearly unprecedented.

The meeting comes after a recent feud between the Pentagon and Anthropic.

Hexeth wants the military to be able to use Anthropic's Claude and other AI tools in all lawful use cases, including domestic surveillance and autonomous lethal activities, a move the company has resisted.

In other AI news, Meta has agreed to buy six gigawatts worth of artificial intelligence computing power from advanced micro devices.

The deal is valued at more than $100 billion and could result in Meta owning as much as 10% of AMD's stock.

For more about the deal, I'm joined now by Robbie Whelan, who covers semiconductors for the journal.

Robbie, AMD's stock was up 8.8% today, while Meta's rose just 0.3%.

Why are investors betting this is such a big deal for AMD?