Connect with us
DAPA Banner

Crypto World

Pentagon Switches AI Partners: OpenAI Replaces Anthropic After Security Dispute

Published

on

Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

Key Takeaways

  • Federal authorities ordered a complete halt to Anthropic’s AI technology across all government agencies, citing national security supply-chain concerns.
  • Within hours of Anthropic’s dismissal, OpenAI secured a Pentagon agreement to integrate its AI systems into classified military infrastructure.
  • The $200 million Pentagon arrangement with Anthropic fell apart when the company declined to permit its technology for autonomous weaponry or widespread domestic monitoring.
  • While OpenAI claims its agreement contains identical usage limitations that Anthropic demanded, skeptics wonder if the company will maintain those boundaries.
  • Anthropic plans legal action against the supply-chain risk classification, arguing the decision lacks legal foundation.

On Friday, the United States government severed its partnership with Anthropic and classified the AI firm as a supply-chain security threat. Shortly afterward, competing company OpenAI revealed a fresh agreement to integrate its artificial intelligence technology into the Pentagon’s secure networks.

President Donald Trump mandated that all federal departments cease operations with Anthropic’s technology effective immediately. Organizations currently utilizing the company’s Claude AI systems have six months to complete their migration to alternative solutions.

Advertisement

Defense Secretary Pete Hegseth declared via X that Anthropic represents a “Supply-Chain Risk to National Security.” This classification typically applies to entities from hostile nations such as China.

The decision carries implications beyond government contracts. Organizations partnering with the Pentagon may face requirements to demonstrate they’ve eliminated Claude from their operations entirely. Major corporations including Nvidia, Amazon, and Google count themselves among Anthropic’s investors and collaborators.

Advertisement

Anthropic had achieved a milestone as the initial AI laboratory to integrate its models within the Pentagon’s secure computing environment. The July agreement carried a potential value reaching $200 million.

Negotiations collapsed when Anthropic declined to ensure its artificial intelligence would remain accessible for all legally permissible military applications. The company established firm boundaries against autonomous weaponry and large-scale domestic monitoring programs.

Pentagon officials indicated Anthropic should rely on military adherence to existing legal frameworks. Anthropic CEO Dario Amodei stated Thursday that his organization “cannot in good conscience” accept such terms.

OpenAI Secures Pentagon Partnership

OpenAI CEO Sam Altman revealed the Pentagon arrangement late Friday through X. He indicated the contract incorporates identical restrictions regarding mass surveillance and autonomous weapons systems that Anthropic had sought.

Advertisement

Altman further stated OpenAI requested the administration extend comparable contract conditions to all artificial intelligence providers. Elon Musk’s xAI had previously received military authorization for deployment in classified environments.

OpenAI President Greg Brockman and his spouse contributed $25 million to a Trump-aligned political action committee during the previous year. They continue financial support for Trump’s artificial intelligence initiatives in forthcoming electoral contests.

Anthropic Prepares Legal Response

Anthropic expressed being “deeply saddened” by the classification and intends to pursue judicial remedies. The organization characterized the determination as “legally unsound” and warned it establishes a troubling precedent for American technology companies engaging in government negotiations.

The General Services Administration announced Anthropic’s removal from its catalog of approved products available to government entities.

Certain observers expressed criticism toward OpenAI’s actions. Democratic figure Christopher Hale announced on X his cancellation of ChatGPT membership in favor of switching to Claude Pro Max.

Advertisement

Anthropic emerged in 2021 when researchers departed OpenAI due to apprehensions about diminishing safety priorities. Both organizations have secured funding in the tens of billions recently and are evaluating potential public stock offerings.

The controversy also referenced a particular event. Following Claude’s deployment during a Venezuela operation in January, an Anthropic staff member contacted a Palantir associate seeking clarification on the technology’s application. Pentagon leadership interpreted this communication as inappropriate interference.

Anthropic maintained the conversation represented standard technical coordination between collaborative partners.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens

Published

on

Ethereum Price Prediction

Crypto analyst Ansem argues that Ethereum (ETH) is in a “worse spot” in 2026 than it was in 2023, pointing to a thesis he says has been eroding for years.

His bearish take drew rebuttals from some members of the community. Meanwhile, on-chain activity and technical indicators elsewhere on the network flash bullish signals.

Ansem Lists Cracks in the ETH Thesis

Ansem argues that Solana (SOL) has dominated retail activity this cycle. Hyperliquid has taken the lead in perpetual futures trading, while rollups have failed to gain traction.

He also noted that Vitalik Buterin “publicly abandoned” the general-use rollup thesis. The ongoing Aave (AAVE) situation around the KelpDAO rsETH exploit, Ansem said, is a mark on  Ethereum’s core value proposition of “safety + security of defi & insto interest.

Advertisement

“ETH thesis has been weakening consistently for years,” the analyst wrote. ETH in 2026 is in a worse spot than it was in 2023, amplified by AI doing extremely well & tech stocks being much more favorable investments with real revenues / emerging narratives / increasing momentum, ETH is a $300B asset with a ton of overhang from Tom Lee topblasting + complacent ETH holders sitting idle in defi protocols.”

Follow us on X to get the latest news as it happens

Technically, the analyst noted that ETH remains in a sustained downtrend after failing to break multi-year resistance. He projected that the second-largest cryptocurrency could slip to 2025 lows near $1,300 and to the bear-market lows from 2022.

“Tight invalidation 2377 assuming problems worsen if you want to play it loose assuming other risk assets continues doing well & drags it up probably somewhere around 2700/2800 invalidation fundamentals wise would want to see breakout activity from some new vertical,” the post read.

Ethereum Price Prediction
Ethereum Price Prediction. Source: X/Ansem

Community Members Push Back

The take triggered notable pushback. Ryan Berckmans accused Ansem of not understanding fundamentals. Leo Lanza went further, sharply dismissing the analyst’s bearish case on X.

Another user pointed to a 56% drop in the SOL/ETH pair this cycle.

Advertisement

“Soleth is down 56% after being up 12x+ *this cycle* because one guy decided to buy 5% of the eth supply after it had underperformed all cycle. idk why you guys act like i dont also bearpost solana i havent posted anything bullish about sol in over a year,” Ansem replied.

Not everyone shares the bearish view on Ethereum. BeInCrypto recently highlighted that network activity remains strong, while technical indicators like the Rainbow Chart and MACD are also flashing bullish signals.

With macro and geopolitical uncertainty still in play, the question is whether ETH slides further this year or stages a renewed rally.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

The post Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens appeared first on BeInCrypto.

Advertisement

Source link

Continue Reading

Crypto World

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Published

on

Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

Advertisement

Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

Advertisement

This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

Advertisement

It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?