In a historic first, the Pentagon has designated Anthropic — the American company behind Claude — as a supply-chain risk, a label previously reserved for foreign adversaries. The fallout triggered a chain reaction: OpenAI swooped in to grab the collapsed contract, only to watch ChatGPT uninstalls spike nearly 300%, while Claude quietly surged past ChatGPT in new app downloads. Meanwhile, AI is already being deployed in the active Iran conflict, raising urgent questions about who controls the guardrails on military AI — governments or the companies that build it. On the security front, OpenAI launched a new AI agent that autonomously hunts and patches vulnerabilities in codebases, while Claude found 22 Firefox security holes in just two weeks. OpenAI also released GPT-5.4 with native computer-use capabilities, and Microsoft dropped a compact but powerful multimodal reasoning model. Privacy took hit after hit this week — Grammarly was caught generating AI feedback attributed to real people without their consent, Meta's smart glasses are facing a class-action lawsuit over secret footage reviews, and new research suggests AI can now de-anonymize your anonymous online accounts. And in a surprise Hollywood move, Netflix acquired Ben Affleck's AI postproduction startup, signaling a major bet on AI-assisted filmmaking.
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