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Pentagon Pushes AI Companies to Deploy Tools on Classified Networks

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TLDR

  • The Pentagon is urging AI companies to make their tools available on classified networks.
  • Chief Technology Officer Emil Michael highlighted AI’s role in all classification levels.
  • OpenAI and Anthropic are negotiating military use of their tools with varying degrees of restriction.
  • OpenAI has agreed to provide its models on unclassified networks under genai.mil.
  • Anthropic has expressed concerns over military use in weapon targeting and domestic surveillance.

The Pentagon is pushing for top AI companies like OpenAI and Anthropic to make their tools available on classified networks. The military aims to expand the deployment of AI across both classified and unclassified domains. The move has sparked debate between the Pentagon and AI companies over usage restrictions.

Pentagon Aims to Deploy AI Tools on All Classification Levels

According to a Reuters report, Pentagon Chief Technology Officer Emil Michael urged tech executives to provide AI models for use on both classified and unclassified networks.

“The Pentagon is moving to deploy frontier AI capabilities across all classification levels,” a government official stated. 

Currently, AI companies mainly offer their tools for unclassified networks, but this push marks a shift in the military’s strategy. The military seeks to use AI’s power to synthesize data and assist decision-making processes.

However, many AI models have built-in safeguards to prevent misuse. These safeguards have led to tension as Pentagon officials argue for fewer restrictions on deployment, saying the tools should be accessible as long as they comply with U.S. laws.

Ongoing Negotiations with AI Companies

The Pentagon has engaged in ongoing talks with leading AI firms about military applications. OpenAI recently struck a deal with the Pentagon to make its tools available on an unclassified network, known as genai.mil. As part of the agreement, OpenAI removed many restrictions but kept some safeguards in place to ensure safe usage.

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While OpenAI’s agreement focuses on unclassified networks, discussions with Anthropic have been more complex. Anthropic executives have expressed concerns about using their models for weapon targeting or domestic surveillance. The company, however, is working with the Department of War to find ways to support national security missions while maintaining its guidelines.

These developments signal a shift in how AI will be integrated into the military. The Pentagon continues to explore the potential of AI tools in critical missions, despite concerns over their reliability in high-risk situations.

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Crypto World

Why DOGE and XRP Holders Are Excited

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12 February 2026

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Why DOGE and XRP Holders Are Excited

As part of the strategy to turn X (formerly Twitter) into a “super app” or Everything App, a key missing piece, X Money, is beginning to take shape.

X aims to be more than a social media platform. Elon Musk wants to transform it into a personal finance game-changer. Users could handle messaging, shopping, and full personal asset management in one place.

Why Are Crypto Investors Excited About X Money?

During an xAI “All Hands” presentation in February 2026, Elon Musk revealed that X Money is already running in internal testing among X employees. A limited rollout to users is expected within the next one to two months.

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X Money has secured money transmitter licenses in more than 40 US states. It also established strategic partnerships with major payment giants such as Visa last year.

“For X Money, we actually had X Money live in closed beta within the company, and we expect in the next month or two to go to a limited external beta and then to go worldwide to all X users. And this is really intended to be the place where all the money is, the central source of all monetary transactions. So it’s really going to be a game-changer,” Elon Musk said.

Musk aims to push monthly active users past 600 million and ultimately reach 1 billion. Analysts compare this ambition to building an everything app similar to China’s WeChat.

As a result, X Money represents a major opportunity for any crypto project that accepts it as a payment method or is indirectly connected to the platform.

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However, X Money has never confirmed that crypto will be used as a payment option. Investors, meanwhile, continue to build their own narratives.

The first speculation centers on Dogecoin (DOGE). This meme coin closely aligns with Elon Musk’s personal brand. The theory stems from Musk’s past comments suggesting DOGE could be suitable for micropayments.

The second speculation involves XRP. This hypothesis is linked to Cross River Bank, a financial partner working with X to process payment flows. Since 2014, Cross River Bank has integrated Ripple’s protocol to enable real-time cross-border payments between the US and Western Europe.

Despite these narratives, DOGE and XRP prices showed no significant reaction to news of X Money’s upcoming launch.

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In the coming months, once X Money officially goes live as planned, its impact on crypto markets and the global financial system may become clearer.

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Crypto World

UK Launches Blockchain Digital Bond Pilot With HSBC Orion

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12 February 2026

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UK Launches Blockchain Digital Bond Pilot With HSBC Orion

The United Kingdom’s government has appointed HSBC’s tokenization platform to power a pilot issuance of digital government bonds, known as “gilts,” marking the latest step in its push to modernize sovereign debt markets using blockchain technology.

His Majesty’s Treasury has appointed HSBC Orion to facilitate the Digital Gilt Instrument (DIGIT) pilot issuance, according to a Thursday announcement.

The Treasury published a DIGIT pilot update in July 2025, outlining plans to explore blockchain applications in UK sovereign debt issuance and to support the development of domestic tokenization infrastructure.

“We want to attract investment and make the UK the best place to do business,” said Lucy Rigby, UK economic secretary to the Treasury, commenting on HSBC Orion’s DIGIT appointment. She added that the pilot will help the UK explore how to capitalize on the distributed ledger technology (DLT), enhance efficiency and reduce costs for businesses.

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Key objectives and features of the DIGIT pilot

The DIGIT pilot aims to enable digitally native, short-dated government bonds operating within the Digital Securities Sandbox (DSS).

The pilot is designed to support secondary market development and broader accessibility, with onchain settlement, while operating independently of the UK government’s main debt management program.

Source: Lucy Rigby

“This is exactly the kind of financial innovation we need to keep the UK at the forefront of global capital markets and I’m looking forward to working with HSBC and other parties to deliver DIGIT,” Rigby said.

HSBC has issued $3.5 billion in digital bonds globally

Since its launch in 2023, HSBC Orion has enabled the issuance of at least $3.5 billion in digitally native bonds globally, including the European Investment Bank’s first digital sterling bond and a multi-currency $1.3 billion-equivalent bond issued by the Hong Kong government.

“The UK is a home market for us and the sixth largest economy in the world,” said Patrick George, HSBC’s global head of markets and securities services. “HSBC is delighted to be supporting the continued development of the gilt market, market innovation, and the growth of the broader UK economy,” he added.

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HSBC Orion-facilitated digital bond issuance projects. Source: HSBC

Related: Malaysia’s central bank announces stablecoin, tokenization sandbox

Alongside appointing HSBC Orion as the platform provider for DIGIT, the UK government also appointed global law firm Ashurst to provide legal services for the pilot.

“Our team brings deep expertise in digital assets transactions, and we look forward to working with HSBC and supporting the government as it takes this transformative step for UK capital markets,” Ashurst’s head of digital assets, Etay Katz, said.

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