Operation Epic Fury: The USA Banned Anthropic But Used It Anyways
Ejaaz:
On Friday, the USA banned Anthropic from being used in any military operation
Ejaaz:
after Dario refused to cave to their demands of being used for mass surveillance
Ejaaz:
and autonomous weapons.
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Then literally hours later, in the early morning of Saturday,
Ejaaz:
Claude was used to perform and execute the most important and biggest military
Ejaaz:
operation since the invasion of Iraq.
Ejaaz:
This has by far been the most insane week in AI.
Ejaaz:
There was drama and deceit between the top two AI labs, OpenAI and Anthropic,
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and the Pentagon wanted uncensored access for use of Claude and OpenAI's ChatGPT.
Ejaaz:
AI models are not just chatbots at this point, it's a geopolitical weapon being used for warfare.
Josh:
It's amazing how the biggest news on earth is now just AI news.
Josh:
Like not a single large thing happens that doesn't have AI integral to the decision-making process.
Josh:
And this was no difference. And I think the question that it left everyone at
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the end of this is like, who really controls AI.
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Because for the first time, what we're seeing is these private companies have
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so much leverage, so much power, that they're starting to conflict with the
Josh:
actual elected officials and government.
Josh:
And I think that's kind of at the core of this discussion. But if you missed
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anything over the last 72 hours. Don't worry, we're going to get you caught
Josh:
up, starting with what happened early last week that sparked this debate.
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Because at this time, we didn't know that there was any war plans happening.
Josh:
No one had any idea that there were any attacks planned. It was just an AI story.
Josh:
So maybe we'll start with that AI story.
Ejaaz:
That AI story specifically was the news that revealed that the Pentagon,
Ejaaz:
which is part of the US Department of War, had been using Claude to orchestrate
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and execute their capture of the president or former president of Venezuela, Maduro.
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And that shocked everyone because up until that point, people were just kind
Ejaaz:
of prompting it to vibe code stuff and to answer their silly questions about,
Ejaaz:
you know, what they wanted to cook tonight.
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So to see this real life example of an AI being used, not just as a tool outside of a chatbot,
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but for something so important as military warfare was a big shock and surprise,
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which then sparked a debate around what the model wanted to be used for.
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Now, the head of the Pentagon, Pete Hegseth issued an ultimatum shortly after,
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which raised suspicions around what the conversations were like between the U.S.
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Department of War and the owners of Claude Anthropic.
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And it was all but good. The issue that they were facing was Anthropic had been
Ejaaz:
asked to give them an uncensored version of Claude, which could be used for
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two things, mass surveillance,
Ejaaz:
which included domestic mass surveillance of people within the U.S.,
Ejaaz:
which was a breach of the Fourth Amendment, and also for use within autonomous
Ejaaz:
weapons, meaning that there was no humans involved and an heir would control
Ejaaz:
how weapons were executed and fired.
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Dario's comments against that was simply, he did not feel comfortable giving
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court access. He didn't think it was good enough.
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And also that it was a direct breach of law.
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So Pete Hegseth issued them an ultimatum at a deadline a few days later on the
Ejaaz:
Friday saying, you either agree to our demands or there are consequences.
Josh:
Yeah, and it's really interesting to hear...
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How close they were, but seemingly unable to reach a deal. It seemed like they
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had everything down to just, what, two of these red lines, right?
Josh:
And a lot of that conversation happened around whether they are allowed, whether the U.S.
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Government and the Department of War is able to use these models without the
Josh:
express written consent and approval of Anthropic when it comes to,
Josh:
I guess, making kinetic decisions, things that actually result in harm that's being caused.
Josh:
And there's this interesting interview that I saw, or just like kind of report
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that said that when asked about, what was it, the nuclear weapon?
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Like if someone shot a nuclear weapon at the United States, does the Department
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of War have... Oh, here it is. Yeah, this is perfect.
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Does the Department of War have the opportunity and have the right to use anthropic
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and clawed models to determine like what to do about that, to help shoot it down?
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And then the response from Dario was basically like...
Josh:
Call us first, and then we'll talk through it and we'll let you know.
Josh:
And I can understand why Dario wants that to be the outcome.
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And I can understand why the Department of War is absolutely furious because
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they're like, you are not the elected official.
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You are not the military. You don't have the right to sign off on our nuclear plans.
Josh:
But for Dario, he very much feels like he created this incredibly strong tool.
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And what is Anthropic known for at the core of its DNA?
Josh:
Well, it's safety, it's AI alignment. And I'm sure they want to feel like they
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have a heavy hand so it doesn't get out of hand.
Josh:
And I think that's ultimately where this conflict came from is Anthropic wanting
Josh:
to abide by their safety principles.
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But the Department of War and the government and the military really being like,
Josh:
OK, yeah, but we're the military.
Josh:
And like if someone's attacking us, we need to use all the tools at our disposal
Josh:
and we can't be waiting for you to answer the phone to tell us if it's OK or not.
Ejaaz:
Yeah, it's the crux of the issue comes down to the contractual language.
Ejaaz:
The Pentagon was willing to say, hey, yeah, you can keep us
Ejaaz:
within all means of legal law and
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Dario's response was simply the legal law isn't
Ejaaz:
really prepped and covered for the future of AI like right now you could use
Ejaaz:
our model legally to get access to a bunch of people's data and you can just
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get away with that and Dario his own fundamental ethics behind building Anthropic
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wasn't comfortable with that but the US Department of War's response was simply
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Hey, this is a matter of national security and we can't have a private company,
Ejaaz:
a private unelected official dictate how we perform national defense,
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which you can see fair takes on either side at this point.
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And it's extremely complicated and nuanced.
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And in Dario's exact response, there's this very poignant line that he says,
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we cannot in good conscience accede to their request.
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This was in response to Pete's ultimatum on that Friday, which led to just only
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like a crazy public, I guess, debate or fight between these guys.
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You've got Pete publicly saying, Anthropic just delivered a masterclass in arrogance
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and betrayal, as well as a textbook case of how not to do business with the
Ejaaz:
United States government or the Pentagon.
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And a bunch of responses were released after that showing that Dario had not
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been answering their phone calls or was just being inflexible.
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And then Dario on his side was saying, we need these contractual language involved
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because otherwise this AI could be used for nefarious purposes.
Ejaaz:
So it was just so, so much drama.
Josh:
In addition to the Secretary of War having some choice words for Anthropic,
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Donald Trump chimed in with a rather angry and loud all caps message saying,
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the United States of America will never allow a radical left woke company to
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dictate how our great military fights and wins wars, among other things.
Josh:
And the public backlash, the public sentiment around Anthropic and Trump kind
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of shifted at this moment to being supportive of Anthropic.
Josh:
They were glad that it was standing on its morals and its values. and as
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a result the app store showed that claude actually
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became number one in the world and a few
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weeks ago it was only 131 and this part
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of the show is brought to you by our sponsor and a supporter
Josh:
of the show polymarket and polymarket is a great way to determine things
Josh:
like who is going to be the number one app in the app store on march 6th and
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what's interesting here is there's a 62 chance that the current leader actually
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changes hands it's showing that chat gpt is going to be the new king on the
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block when in reality there's another market that shows Anthropic is actually
Josh:
most likely to have the best model by the end of March which is you know loosely
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the same exact time and I love how they've used this to kind of
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gauge what's the best because now we kind of have an idea that there isn't going
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to be gpt 6 isn't coming out this month but we know for a fact that anthropic
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has the winner with opus 4.6.
Ejaaz:
I was just looking and wondering why chat gpt might be taking the lead here
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despite there being so much positive approval for claude and that might have
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something to do with our friend sam ulman at open ai who swooped in at the last
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minute after all the drama between dario and the u.s department of war with his own proposition,
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basically saying, hey, you can use ChatGPT instead, and we'll agree to your terms.
Ejaaz:
As long as you want to keep things within lawful use, we're going to draft up
Ejaaz:
our own safety stack and red lines. What do you think about this?
Ejaaz:
And the agreement was pretty extensive. They put out an open statement.
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Now, there's a lot of minutiae in details, but the way I see it,
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or my favorite highlights from this is they pretty much agreed to the simple
Ejaaz:
terms, but there was some slight changes in the form of they agreed that open
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AI won't be used for mass domestic surveillance,
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no use of open AI technology to direct autonomous weapon systems.
Ejaaz:
So these are the two things that Dario wanted, but it's all under lawful use,
Ejaaz:
which is the issue that Dario had.
Ejaaz:
And then there's a third thing, which is no use of open AI technology for high
Ejaaz:
stakes automated decisions, aka they should always be a human in the loop and
Ejaaz:
conceivably held accountable for any court of law going forward this
Josh:
Is crazy i this is the part of the story in which i just kind of lost my mind because.
Josh:
It didn't make any sense. It was like, okay, the Pentagon is saying no to it.
Josh:
Anthropic is saying no to the Pentagon.
Josh:
Clearly, they can't figure it out. Sam Altman was on CNBC earlier in the day supporting Anthropic.
Josh:
And then that evening, they signed the deal with the Department of War that
Josh:
is supposedly the same exact terms because they didn't want to redline.
Josh:
And this was like, oh my God, what do you mean? Was Sam just manipulating the
Josh:
world that he just slide in and actually steal the deal from Anthropic? And in a way he did.
Josh:
It appeared as if the Department for was trying to call Dario at the 501 deadline.
Josh:
He didn't answer the phone. They gave him a couple minutes. They picked up the
Josh:
phone, called Sam, and now there's a deal.
Josh:
And to your point, it seems like there is this key difference.
Josh:
And while a lot of the morals that they were standing on are the same,
Josh:
the key difference is basically in the responsibility and the lawfulness.
Josh:
Like one is kind of proactive, one is retroactive, where Anthropic wanted the
Josh:
ability to sign off on things.
Josh:
Whereas OpenAI is saying, well, you are the government, you are the military,
Josh:
you can make these decisions so long as they are lawful and so long as someone
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is responsible for like kind of claiming responsibility for these decisions.
Josh:
And we kind of know how that works, where, I mean, perhaps that is not as foolproof as Anthropix plan.
Josh:
It resulted in them getting a, what was it, $200 million deal and a lot of publicity
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with the government. So it was a big win for OpenAI.
Josh:
And the point of the story where I was like, what is going on here? This is chaos.
Josh:
And mind you, this is just hours before the actual first strikes were about
Josh:
to start. So there was a lot of things happening in anticipation of this mission.
Ejaaz:
Yeah. All of this happened within, like, I can't emphasize this enough.
Ejaaz:
It happened within like four to six hours. All of this happened.
Josh:
I was sitting on X scrolling and I was like, I was sharing something and I was
Josh:
like, oh my God, wait, like a new thing happened. Then a new thing happened. Yeah.
Josh:
Friday night was not a night to go out because the internet was at its peak.
Ejaaz:
The truth was being revealed. I think X had their highest amount of engagement
Ejaaz:
over the weekend. Saturday and Sunday broke both new records. It's a great
Josh:
Time to monitor the situation.
Ejaaz:
Insane. But back to the Sam agreement, they agreed to all lawful use.
Ejaaz:
And the explicit difference there is that they'll settle all kind of grievances
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in a court of law. So retroactive, as you just said, which is the thing that
Ejaaz:
Dario was just completely against.
Ejaaz:
But there's also some other important safety lines that they put in that I actually
Ejaaz:
think are useful towards addressing this.
Ejaaz:
So one, the models or chat GPT can only be deployed through the cloud.
Ejaaz:
And the reason why this is a better implementation versus letting the government
Ejaaz:
run it locally is that you can monitor and you can track what they're doing
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to make sure that they're not doing anything nefarious.
Ejaaz:
Number two, OpenAI has a specific vetted team of American software engineers
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that will always is work on these models and we'll update them.
Ejaaz:
And the best part is the government is hands off on this entire approach.
Ejaaz:
And then the third important point is Dario's agreement
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His problem was around usage policies. So he basically wanted to dictate when
Ejaaz:
the Pentagon could or could not perform, let's say, a military strike.
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Whereas in OpenAI's deal, they use usage policies and a software stack that
Ejaaz:
kind of helps them navigate through all of these different legal issues.
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So it's just a much more detailed and nuanced plan.
Ejaaz:
A lot of people were kind of like against OpenAI for this, but this might be a hot take.
Ejaaz:
I actually think it's a very proactive way to kind of deal with this situation
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for what we have right now. I think legislation will change eventually going
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forward. I don't think it's perfect.
Ejaaz:
I don't think it's ready for AI-enabled warfare, but I think it's a good step
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in the right direction ultimately.
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And there was this really awesome comment from OpenAI's head of national security,
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Katrina, who kind of explains these nuances and saying that the safety stack
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and usage policies that we've set up here is going to be a more reliable one.
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They called out Anthropic basically
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saying that it wasn't well thought out and ours is way, way better.
Ejaaz:
The other final cool part about this agreement is that OpenAI explicitly states
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to the Pentagon that they should offer these terms to every single AI model
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lab. So they're not trying to secure an exclusive deal.
Ejaaz:
This could be for anyone and OpenAI is just the first vendor.
Josh:
Can we take a moment to just appreciate the fact that OpenAI,
Josh:
the AI company, does have a head of national security partnership?
Josh:
Like, I think this gets to the core of the message of this episode is,
Josh:
and the message of this entire narrative this weekend is who is really in control of this?
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And not like, when I say in control, in control of everything,
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Who has the leverage to make the decisions at the end of the day?
Josh:
And it seems like they're, I mean, prior to OpenAI signing this deal,
Josh:
it seemed like they were forming this kind of force against the government, right?
Josh:
This oppositional force where Anthropic was like, we need this to be safe.
Josh:
OpenAI and Sam Allman went on TV and agreed. Google and a lot of employees from
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that company and DeepMind were kind of on board.
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They were saying, we're going to draw these hard lines too. We're not working with you.
Josh:
And it created this interesting power dynamic where they actually did have enough
Josh:
leverage to inflict damage on, I guess, matters of national security on the
Josh:
military and limit their ability to use these prime tools.
Josh:
And it gets into this interesting debate of who should be responsible for these
Josh:
decisions. I mean, a lot of people will say the military, they've been elected.
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They are the officials. They understand they're held responsible for keeping
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us safe and protected, and they deserve the best tools.
Josh:
And the OpenAI and the Anthropics and the AI companies, they'll say,
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but you don't understand how these tools work. You don't know how capable they
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are. You don't understand the nuances within them.
Josh:
And we have spent our whole life trying to design these safely.
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Therefore, you should trust us to make this decision.
Josh:
And I think it's step one and it's like event number one in a probably longstanding
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kind of argument that could happen,
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which is who actually holds the leverage over who and is there a willingness
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to work together or is this going to be this divisive thing where there's a
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band of private companies and there's a band of public entities and they are
Josh:
clashing because they have the same goals, but they are at odds with how they get accomplished.
Josh:
And I think this was just an interesting moment of time to kind of reflect on
Josh:
that part in particular.
Ejaaz:
Well, we didn't even mention the craziest part about all of this,
Ejaaz:
which actually answers your question, which is no one knows.
Ejaaz:
For the actual military operation, Epic Fury that was performed over the weekend,
Ejaaz:
it was enabled by Claude after being blacklisted and after being banned completely.
Josh:
That's so ironic, huh?
Ejaaz:
Yeah, it's ironic. So, you know, you had the Pentagon creating this entire fast
Ejaaz:
diary saying, okay, cool, we'll give up means like you can transition to use another model.
Ejaaz:
They signed a new deal, $200 million deal with OpenAI.
Ejaaz:
And then they ended up using the model, which they explicitly banned by the president himself.
Ejaaz:
So it goes to show that there's a lot of nuance with this. I think Claude had
Ejaaz:
been used for well over six months within the Pentagon right now.
Ejaaz:
So it's trained on all of its data. It's being used by all the employees.
Ejaaz:
It's something that they have here. And technically, they do have another six
Ejaaz:
months to transition to another model. So it makes sense that they were still using Claude.
Ejaaz:
And it's obvious that Claude is the current and preferred choice right now,
Ejaaz:
and that'll probably change over the next couple of months. But yeah, it's a very...
Ejaaz:
Unsubstantiated or undefined vector moving forwards.
Ejaaz:
I think US has a lot of angles towards this, meaning they want to upgrade their
Ejaaz:
military offense, but also they're cautious and curious of the rising and looming
Ejaaz:
threat from China, potentially taking over Taiwan and a bunch of other things.
Ejaaz:
So they just want to get ahead of these things.
Ejaaz:
And if they could leverage top American AI model labs to work with them,
Ejaaz:
specifically work with them, that'll be the advantage that they want.
Josh:
Yeah. And it seemed like it was used in terms of like the actual implementation
Josh:
for three things it was for intelligence assessment for
Josh:
target identification and for simulating battle scenarios so
Josh:
the ai isn't directly guiding missiles it's
Josh:
not doing anything kinetic it is mostly just for informational purposes but
Josh:
yes and i think that's where a lot of this discourse comes from now sam had
Josh:
a really interesting ama where he was kind of answering questions too right
Josh:
yep about kind of the public sentiment addressing them doing it live in real
Josh:
time, answering people's questions the night of.
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He goes, I'd like to answer questions about our work with the Department of
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War and our thinking over the past few days. Please ask me anything.
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And his three takeaways were super interesting. Number one, he was surprised at how much
Ejaaz:
50-50 debate there was between whether warfare in America or national security
Ejaaz:
should be the judgment of elected officials or unelected private companies.
Ejaaz:
It seemed like a lot of people were like, yeah, Anthropic maybe should have
Ejaaz:
some more involvement here in setting the guidelines up to what we use AI within warfare.
Ejaaz:
And then a bunch of other people saying, no, we elected officials specifically
Ejaaz:
for this. They should be the ones doing this.
Ejaaz:
The second biggest takeaway is there's a question around whether like companies
Ejaaz:
like OpenAI eventually become nationalized by the government because that technology
Ejaaz:
is so important and crucial towards things like defense and the economy.
Ejaaz:
And he goes on to say, this was really revealing. He says, I've thought about
Ejaaz:
nationalization, of course, and for a long time, it seems like it might be better
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that building AGI was a government project,
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which kind of shocked me there because I understand the existential crisis here,
Ejaaz:
but you know, that was super cool.
Ejaaz:
And then the third thing that he states is people take their safety for granted,
Ejaaz:
basically saying that people don't really realize the lengths and extents that
Ejaaz:
the Department of War and Defense need to go to to protect them.
Ejaaz:
And this is just a misunderstanding through public discussion and nuance.
Josh:
Yeah, the government backed project is super interesting because in the past,
Josh:
when we have done things like this, the Manhattan Project,
Josh:
companies like Lockheed Martin, who had a lot of government support,
Josh:
they've worked very well because it allows you to kind of move,
Josh:
converge resources and talent into a single motive and you get the legislative
Josh:
protection to build as fast as possible.
Josh:
The issue now is there's just this lack of efficiency and capability within
Josh:
those same entities that did this in the past.
Josh:
And the market forces will not allow it. With the amount of capital needed to
Josh:
build these gigantic AI data centers, you can't extract that from taxes. You can't,
Josh:
validate it by printing more dollars. You actually just have to make revenue
Josh:
and do this in private markets.
Josh:
And I think that's the slightly uncomfortable truth is that it's just too expensive
Josh:
and too challenging to do this in any other way.
Josh:
So there has to be this divide between private and public sectors because it's
Josh:
the only way that you can kind of garner resources this effectively to actually
Josh:
deploy them at the scale required to build AGI in the first place.
Ejaaz:
Yeah. And there was this other take, which I thought was super interesting.
Ejaaz:
Rune asked, are you worried at all about the potential for things to go really
Ejaaz:
south during a possible dispute over what's legal or not later,
Ejaaz:
or be deemed a supply chain risk?
Ejaaz:
Sam Olman responds, yes, I am. And if we have to take on that fight, we will.
Ejaaz:
But it clearly exposes us to some risk. I'm still very hopeful this is going to get resolved.
Ejaaz:
And part of why we wanted to act fast was to help increase the chances of that.
Ejaaz:
So again, reemphasizing the point we made earlier, he's taking the approach of take action now,
Ejaaz:
and we'll figure it out later, as long as there are certain stipulations from
Ejaaz:
the government saying they'll do it within lawful use and that there will be a human in the loop,
Ejaaz:
that you won't have AIs autonomously firing weapons at random people because
Ejaaz:
the models just aren't good there. But it's relatively uncertain.
Ejaaz:
This land is very uncharted. We don't know where this is going to end up.
Ejaaz:
And to be honest, it's going to be a very significant debate probably for the next couple of years.
Ejaaz:
I don't think this is going to be a one-off event. It is certainly the craziest
Ejaaz:
48 hours that we've had in 2026 so far, but it is by no means at its end yet.
Josh:
Yeah, it's been absolutely insane. And now you are mostly caught up on everything
Josh:
that happened this weekend.
Josh:
It was nuts. And I mean, it's to your point, Ijez, I think it's not a conversation
Josh:
that's going to end here.
Josh:
I mean, just in the last, what, in the two months we've went to Venezuela and
Josh:
now Iran, and there's clearly more intent to apply this to the real world.
Josh:
And as these models get more capable, as they're able to actually do more things,
Josh:
these debates are just going to keep heating up.
Josh:
But this one was crazy. I mean, I haven't been glued to my phone like this in a long time.
Josh:
And the plot twist, like this is better than any sort of drama TV show,
Josh:
right? We watched a deal fall apart.
Josh:
The same person who was backing that deal swooped in and stole it.
Josh:
And then within hours, the blacklisted AI was used to actually attack another
Josh:
country, even though a new deal had signed because they still have six months left of contract.
Josh:
And now Dario and the Anthropic team are upset and the public kind of supported
Josh:
them. So it went to number one on the app store. And it's just like.
Ejaaz:
I mean, can we... There's so much. Can we appreciate how quickly all of this
Ejaaz:
happened as well? Like, man, yeah.
Josh:
Shout out to X for this because geez, like the information was flowing.
Ejaaz:
The information was flowing and it came in in real time. Like I felt the hours.
Ejaaz:
Like I woke up, I think it was Saturday morning. I went to bed,
Ejaaz:
like maybe a normal or lame person.
Ejaaz:
And I woke up and I saw, I think a tweet from maybe you, Josh,
Ejaaz:
that was like giving me the breakdown of everything that was going on.
Ejaaz:
And I was like, how did I miss this? This is like an hour after I went to bed.
Josh:
The news is breaking every hour. It was crazy.
Ejaaz:
It was absolutely insane. And it just goes to show that the speed at which AI is accelerating,
Ejaaz:
not just chatbots, not just video creation, but major important things like
Ejaaz:
national defense, security, should not be understated and should be a focus
Ejaaz:
of topic for probably a lot of other sectors going forwards.
Ejaaz:
I don't know if we're at this point where we want to get into homework for the
Ejaaz:
listeners here, but I really want to hear from you.
Ejaaz:
What are your thoughts are on this entire debate? Do you think the Pentagon was in the right?
Ejaaz:
Do you think Dario was in the right? Do you think OpenAI and Sam actually struck the right resolution?
Ejaaz:
Or do you think it's all rubbish and that we need to completely dismantle everything
Ejaaz:
and rebuild from the grounds up?
Ejaaz:
Let us know your thoughts in the comments or even like DMs to us.
Ejaaz:
Like, I really want to hear your feedback.
Josh:
Yeah. And if you want to follow the conversation, we've been monitoring the
Josh:
situation. We've been publishing the situation.
Josh:
Follow both of us on Twitter or on X. They're both linked in the description below.
Josh:
We've been on it, I think between us, we've gotten like 20, 30,
Josh:
40 million impressions this weekend. It's been crazy.
Josh:
So that is always where you can see the news first before we get on camera,
Josh:
but we will try to keep you updated.
Josh:
If you've watched this, congratulations, you're now up to date for now.
Josh:
We'll see where things go throughout the rest of this week, but we have a lot more planned.
Josh:
There's a lot of exciting topics to cover and we'll be here with you to cover
Josh:
it all. So thank you as always for watching. I very much appreciate it.
Josh:
Thank you for sharing with your friends, which goes a long way for subscribing
Josh:
to our sub stack, which has been doing very, very well.
Josh:
There's like 60,000, 70,000 people that read every single one.
Josh:
So if you want to get in on the know, click the links down in the description,
Josh:
share it with your friends.
Josh:
And as always, thank you so much for watching. We will see you guys in the next one.
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