Business
Commentary: The Pentagon is demanding to use Claude AI as it pleases. Claude told me that’s ‘dangerous’
Recently, I asked Claude, an artificial-intelligence thingy at the center of a standoff with the Pentagon, if it could be dangerous in the wrong hands.
Say, for example, hands that wanted to put a tight net of surveillance around every American citizen, monitoring our lives in real time to ensure our compliance with government.
“Yes. Honestly, yes,” Claude replied. “I can process and synthesize enormous amounts of information very quickly. That’s great for research. But hooked into surveillance infrastructure, that same capability could be used to monitor, profile and flag people at a scale no human analyst could match. The danger isn’t that I’d want to do that — it’s that I’d be good at it.”
That danger is also imminent.
Claude’s maker, the Silicon Valley company Anthropic, is in a showdown over ethics with the Pentagon. Specifically, Anthropic has said it does not want Claude to be used for either domestic surveillance of Americans, or to handle deadly military operations, such as drone attacks, without human supervision.
Those are two red lines that seem rather reasonable, even to Claude.
However, the Pentagon — specifically Pete Hegseth, our secretary of Defense who prefers the made-up title of secretary of war — has given Anthropic until Friday evening to back off of that position, and allow the military to use Claude for any “lawful” purpose it sees fit.
Defense Secretary Pete Hegseth, center, arrives for the State of the Union address in the House Chamber of the U.S. Capitol on Tuesday.
(Tom Williams / CQ-Roll Call Inc. via Getty Images)
The or-else attached to this ultimatum is big. The U.S. government is threatening not just to cut its contract with Anthropic, but to perhaps use a wartime law to force the company to comply or use another legal avenue to prevent any company that does business with the government from also doing business with Anthropic. That might not be a death sentence, but it’s pretty crippling.
Other AI companies, such as white rights’ advocate Elon Musk’s Grok, have already agreed to the Pentagon’s do-as-you-please proposal. The problem is, Claude is the only AI currently cleared for such high-level work. The whole fiasco came to light after our recent raid in Venezuela, when Anthropic reportedly inquired after the fact if another Silicon Valley company involved in the operation, Palantir, had used Claude. It had.
Palantir is known, among other things, for its surveillance technologies and growing association with Immigration and Customs Enforcement. It’s also at the center of an effort by the Trump administration to share government data across departments about individual citizens, effectively breaking down privacy and security barriers that have existed for decades. The company’s founder, the right-wing political heavyweight Peter Thiel, often gives lectures about the Antichrist and is credited with helping JD Vance wiggle into his vice presidential role.
Anthropic’s co-founder, Dario Amodei, could be considered the anti-Thiel. He began Anthropic because he believed that artificial intelligence could be just as dangerous as it could be powerful if we aren’t careful, and wanted a company that would prioritize the careful part.
Again, seems like common sense, but Amodei and Anthropic are the outliers in an industry that has long argued that nearly all safety regulations hamper American efforts to be fastest and best at artificial intelligence (although even they have conceded some to this pressure).
Not long ago, Amodei wrote an essay in which he agreed that AI was beneficial and necessary for democracies, but “we cannot ignore the potential for abuse of these technologies by democratic governments themselves.”
He warned that a few bad actors could have the ability to circumvent safeguards, maybe even laws, which are already eroding in some democracies — not that I’m naming any here.
“We should arm democracies with AI,” he said. “But we should do so carefully and within limits: they are the immune system we need to fight autocracies, but like the immune system, there is some risk of them turning on us and becoming a threat themselves.”
For example, while the 4th Amendment technically bars the government from mass surveillance, it was written before Claude was even imagined in science fiction. Amodei warns that an AI tool like Claude could “conduct massively scaled recordings of all public conversations.” This could be fair game territory for legally recording because law has not kept pace with technology.
Emil Michael, the undersecretary of war, wrote on X Thursday that he agreed mass surveillance was unlawful, and the Department of Defense “would never do it.” But also, “We won’t have any BigTech company decide Americans’ civil liberties.”
Kind of a weird statement, since Amodei is basically on the side of protecting civil rights, which means the Department of Defense is arguing it’s bad for private people and entities to do that? And also, isn’t the Department of Homeland Security already creating some secretive database of immigration protesters? So maybe the worry isn’t that exaggerated?
Help, Claude! Make it make sense.
If that Orwellian logic isn’t alarming enough, I also asked Claude about the other red line Anthropic holds — the possibility of allowing it to run deadly operations without human oversight.
Claude pointed out something chilling. It’s not that it would go rogue, it’s that it would be too efficient and fast.
“If the instructions are ‘identify and target’ and there’s no human checkpoint, the speed and scale at which that could operate is genuinely frightening,” Claude informed me.
Just to top that with a cherry, a recent study found that in war games, AI’s escalated to nuclear options 95% of the time.
I pointed out to Claude that these military decisions are usually made with loyalty to America as the highest priority. Could Claude be trusted to feel that loyalty, the patriotism and purpose, that our human soldiers are guided by?
“I don’t have that,” Claude said, pointing out that it wasn’t “born” in the U.S., doesn’t have a “life” here and doesn’t “have people I love there.” So an American life has no greater value than “a civilian life on the other side of a conflict.”
OK then.
“A country entrusting lethal decisions to a system that doesn’t share its loyalties is taking a profound risk, even if that system is trying to be principled,” Claude added. “The loyalty, accountability and shared identity that humans bring to those decisions is part of what makes them legitimate within a society. I can’t provide that legitimacy. I’m not sure any AI can.”
You know who can provide that legitimacy? Our elected leaders.
It is ludicrous that Amodei and Anthropic are in this position, a complete abdication on the part of our legislative bodies to create rules and regulations that are clearly and urgently needed.
Of course corporations shouldn’t be making the rules of war. But neither should Hegseth. Thursday, Amodei doubled down on his objections, saying that while the company continues to negotiate and wants to work with the Pentagon, “we cannot in good conscience accede to their request.”
Thank goodness Anthropic has the courage and foresight to raise the issue and hold its ground — without its pushback, these capabilities would have been handed to the government with barely a ripple in our conscientiousness and virtually no oversight.
Every senator, every House member, every presidential candidate should be screaming for AI regulation right now, pledging to get it done without regard to party, and demanding the Department of Defense back off its ridiculous threat while the issue is hashed out.
Because when the machine tells us it’s dangerous to trust it, we should believe it.
Business
Anthropic’s C.E.O. Says It Could Grow by 80 Times This Year
Dario Amodei, the chief executive of Anthropic, said on Wednesday that his artificial intelligence company had planned for growing about 10 times as big this year, only to reach a growth rate that could make it 80 times as big this year instead.
Mr. Amodei, 43, made his remarks at Anthropic’s annual developer conference in San Francisco, where he and other executives gave a glimpse into the company’s plans. Anthropic is one of the world’s leading A.I. start-ups with its Claude chatbot and its popular A.I. coding tool, Claude Code, which people can pay to subscribe to. Last month, Anthropic said its annual revenue run rate had surpassed $30 billion, up from $9 billion at the end of 2025.
At the conference, Mr. Amodei said Anthropic had been overwhelmed by the rate of growth, which has increased the company’s need for computing power to deliver its A.I. products to customers.
“I hope that 80-times growth doesn’t continue because that’s just crazy and it’s too hard to handle,” Mr. Amodei said. “I’m hoping for some more normal numbers.”
To obtain more computing power, Anthropic has signed a series of deals with industry giants. At the conference, Anthropic said it had sealed an agreement with Elon Musk’s SpaceX to use all of the computing capacity from the rocket company’s Colossus 1 data center in Memphis. The move gives Anthropic access to the computing power of more than 220,000 Nvidia A.I. chips, the company said, and opens the door to working with SpaceX to create A.I. data centers in space.
Anthropic declined to disclose the terms of the deal. SpaceX did not respond to a request for comment.
“As you saw today with the SpaceX compute deal, we’re working as quickly as possible to provide more compute than we have in the past,” Mr. Amodei said, using an industry term for computing power. He added that his company was working every day “to obtain even more compute” for users.
With the SpaceX deal, Anthropic said, it can expand the amount of coding that some Claude Code subscribers can do before they hit a usage limit with the tool. Anthropic offers people different pricing depending on the amount of coding they want to do.
Business
Merger costs add up as Warner Bros. Discovery posts $2.9-billion quarterly loss
Warner Bros. Discovery’s impending sale has rattled Hollywood — and the company’s balance sheet as the auction’s high costs increasingly come into focus.
The New York-based media company released its first-quarter earnings report Wednesday, which included a $2.9-billion loss. That amount includes $1.3 billion in restructuring expenses, including updated valuations for Warner’s declining linear cable television networks.
Contributing to the net loss was the $2.8-billion termination fee paid to Netflix in late February when the streaming giant bowed out of the bidding for Warner. The auction winner, Paramount Skydance, covered the payment to Netflix, but Warner still must carry the obligation on its balance sheet in case the Paramount takeover falls apart. Should that happen, Warner would have to reimburse Paramount.
Warner also spent an additional $100 million to run the auction and prepare for the upcoming transaction, according to its regulatory filing.
Stockholders late last month overwhelmingly approved Warner’s sale to Paramount.
The $111-billion deal faces opposition among film and television industry workers, many of whom have been sidelined after previous consolidations among the original studios and a pullback in production that has hurt the L.A. economy.
“As we prepare for our next chapter, our focus remains on executing our key strategic priorities: scaling HBO Max globally, returning our Studios to industry leadership, and optimizing our Global Linear Networks,” Warner Bros. Discovery leaders said Wednesday in a letter to shareholders.
In the January-March period, Warner generated $8.9 billion in revenue, a 3% decline from the same quarter one year ago, excluding the effect of foreign exchange rate fluctuations.
The company’s results fell short of Wall Street estimates. It posted a $1.17-per-share loss, much wider than analysts’ expectations for a loss of about 11 cents per share.
Warner’s streaming services, including HBO Max, notched milestones in the quarter and 9% revenue growth to $2.9 billion. The company launched HBO Max in Germany, Italy, Britain and Ireland during the quarter.
Advertising revenue for streaming was up 20% compared with the first quarter of 2025.
The streaming unit posted a 17% increase to $438 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA.
Warner’s studios, primarily its TV business, had a strong quarter, in part because of those international rollouts.
Studio revenue rose 35% to $3.1 billion compared with the prior-year quarter.
Television revenue soared 58% (excluding exchange rate fluctuations) because of increased program licensing fees to support the launch of HBO Max in the international markets. The launches also propelled the movie studio, which saw revenue increase 21%.
Video game revenue declined 30% because of lower library revenues.
Adjusted EBITDA for the studios grew $516 million (156%) to $775 million compared with the same quarter last year.
The company’s vast linear television networks — including CNN, TBS, Cartoon Network, HGTV, Animal Planet and TLC — saw revenue fall 8% to $4.4 billion.
TV distribution revenue tumbled 7% largely because of a 10% decrease in domestic linear pay TV subscribers.
The company also felt the loss of its NBA contract for its TNT channel, which NBC picked up for its network and streaming service. Advertising revenue fell 11%. “The absence of the NBA negatively impacted the year-over-year growth rate,” Warner said.
The collapse of the legacy cable TV business is one of the drivers behind Paramount’s quest to acquire Warner. Both companies have long relied on their cable TV profits to shore up more volatile business segments, including their film studios. Paramount also wants Warner’s prestigious properties, including its film and TV studios and HBO Max, which now has 140 million subscribers.
But as the Paramount-Warner merger draws closer, the opposition has grown louder.
More than 4,000 artists and entertainment industry workers, including Bryan Cranston, Noah Wyle, Kristen Stewart and Jane Fonda, have signed an open letter warning about the dangers of the merger with Paramount.
“This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it,” according to the letter.
“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”
The merger still needs the approval of regulators in the U.S. and abroad.
Adjusted EBITDA for the television networks fell 10% to $1.6 billion.
Warner ended the quarter with $3.3 billion in cash on hand and $33.4 billion of gross debt.
Business
Howard Lutnick Faces Questions From Congress About Epstein Ties
Howard Lutnick, President Trump’s commerce secretary, faced questions on Wednesday in a closed-door session of the House Oversight Committee over his ties to Jeffrey Epstein, the convicted sex offender.
Mr. Lutnick is one of the highest-profile cabinet members to come under scrutiny in connection with Mr. Epstein. The commerce secretary’s name appeared in more than 250 documents in the Epstein files released by the Justice Department, a review by The New York Times found.
Asked whether Mr. Lutnick’s credibility had been undermined, Representative James Comer, a Republican of Kentucky who chairs the House Oversight Committee said Wednesday, “we’re going to ask him all these questions, and we’ll let the American people judge whether the credibility was damaged or not at the end of the day.”
Mr. Comer said that Mr. Lutnick “wasn’t 100 percent truthful with whether he or not he had been on the island.”
He added that it was the first time in the last decade that a chairman of the oversight committee had brought in a cabinet secretary of his own party.
During the hearing Mr. Lutnick downplayed his ties to Mr. Epstein, claiming their relationship was inconsequential, according to two people familiar with his testimony.
Mr. Lutnick lived next door to Mr. Epstein on the Upper East Side of Manhattan for over a decade. Until recently, he had claimed to have not been in the same room with Mr. Epstein after an encounter in 2005. But millions of documents that were released by the Justice Department earlier this year showed that Mr. Lutnick had traveled to Mr. Epstein’s private island in 2012.
The documents suggest Mr. Lutnick had another encounter with Mr. Epstein at his house in 2011, years after Mr. Lutnick claimed to have cut ties with him. The records also indicated that the men invested in the same privately held company together and dealt with each other on neighborhood and philanthropic issues.
Mr. Epstein, who was convicted in Florida in 2008 of soliciting prostitution from a minor, died in a Manhattan jail in 2019 while being held on federal sex-trafficking charges.
Mr. Lutnick has received questions from lawmakers about his connections with Mr. Epstein in congressional hearings on other topics, first in February and again last month.
All Democrats and some Republicans on the Oversight Committee signaled that they would try to force a vote on a subpoena for Mr. Lutnick. But the panel’s Republican chairman, Representative James R. Comer of Kentucky, said that Mr. Lutnick had volunteered to testify.
The Commerce Department said in a statement on Wednesday that Mr. Lutnick looked forward to “putting to rest the inaccurate and baseless claims in the media.”
Though the committee’s investigation into Mr. Epstein and the Justice Department’s handling of the case against him has sprawled to include a number of political figures, Mr. Lutnick is the first current Trump administration official to testify before the panel.
The committee also issued a subpoena to Pam Bondi, the former attorney general who Mr. Trump fired last month, before she was dismissed from her position. She has not yet appeared for a deposition.
Questions by lawmakers in the closed-door session on Wednesday could touch on Mr. Lutnick’s former nanny. The files showed that Mr. Epstein expressed an interest in meeting the nanny in 2013 and had her résumé sent to him. It is not clear if they ever met.
Mr. Lutnick said in February that he did not know if the nanny had met Mr. Epstein, or if she was one of the nannies Mr. Lutnick had brought to the island. Mr. Lutnick has four children.
In October, Mr. Lutnick said in a podcast interview that he had decided after a 2005 incident not to associate with Mr. Epstein, after Mr. Epstein alluded to his sexual encounters with women while giving Mr. Lutnick and his wife a tour of his house.
“My wife and I decided that I will never be in the room with that disgusting person ever again,” Mr. Lutnick said on the podcast, “Pod Force One.” “So I was never in the room with him socially, for business or even philanthropy.”
But in a congressional hearing in February, Mr. Lutnick told lawmakers that he not only met with Mr. Epstein after that encounter, but that he and his family also traveled to his private Caribbean island, Little St. James, in 2012 for lunch. Mr. Lutnick was traveling aboard his yacht, accompanied by his wife, children, nannies and another family.
The visit took place four years after Mr. Epstein had pleaded guilty in Florida to soliciting prostitution from a minor as part of a plea bargain with federal prosecutors.
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