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End of annoying robocalls? FTC cracks down on deceptive practices

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End of annoying robocalls? FTC cracks down on deceptive practices

The Federal Trade Commission reached a settlement with XCast Labs after the Voice over Internet Protocol provider was accused of facilitating billions of robocalls. Federal regulators sued the California-based company, claiming it helped other companies navigate around the Do Not Call Registry.

Now, XCast Labs might have to pay a $10 million fine and must start screening companies to make sure they’re following U.S. telemarketing laws.

CLICK TO GET KURT’S FREE CYBERGUY NEWSLETTER WITH SECURITY ALERTS, QUICK VIDEO TIPS, TECH REVIEWS, AND EASY HOW-TO’S TO MAKE YOU SMARTER

Woman talking on cellphone (Kurt “CyberGuy” Knutsson)

How XCast Labs is accused of helping scammers make millions of fake calls

XCast Labs is accused of aiding other companies to make more than a hundred million robocalls. The California-based voice provider denies any wrongdoing in the settlement. The FTC has been on the case since 2020. That’s when it sent out a letter to Voice over Internet Protocol providers, including XCast Labs, reminding them that aiding illegal telemarketers is against the law.

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It filed a complaint back in May, claiming the company still transmitted illegal robocalls. Some of those calls even involved telemarketers posing as government officials, including from the Social Security Administration.

Not only will XCast Labs face a proposed $10 million fine and begin screening companies, but it also has to cut business ties with illegal telemarketers.

Woman talking on cellphone (Kurt “CyberGuy” Knutsson)

MORE: HOW HACKERS CAN SEND TEXT MESSAGES FROM YOUR PHONE WITHOUT YOU KNOWING

How to protect yourself from robocalls

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There are 7 things you can do to keep robocalls away.

1) Register your phone number with the National Do Not Call Registry

You can register your phone number with the National Do Not Call Registry using this link. While this settlement proves there are ways around the registry, it’s still an additional layer of security.

2) If you don’t recognize the number, don’t pick it up

Simple as this sounds, this is the easiest way of avoiding a potentially dangerous call. Most carriers now have a way of identifying robocalls by identifying them as “Spam Risk” or the like. Another way they try to get you is by using your local area code, sometimes even the first three digits of your or a family member’s phone number, to entice you to answer. Making it all the more important for you to take an extra careful look at the number on your screen.

3) You should also consider blocking numbers in your phone settings

Another way around this is by blocking unknown phone numbers in your phone settings

For iPhone users: To silence unknown callers:

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*Settings may vary depending on your Android phone’s manufacturer

  • Tap Settings
  • Tap Phone
  • Tap Silence Unknown Callers
  • Then toggle to turn it on – it will turn green
  • If a 911 call is placed, this feature is disabled for 24 hours so that emergency calls to you can ring through

Silence Unknown Callers feature on iPhone (Kurt “CyberGuy” Knutsson)

For Android users: To silence unknown callers:

  • Tap Settings
  • Tap Block numbers
  • Turn on the Block Unknown Callers feature

One thing that is important to remember should you use this feature is that it not only blocks potential SPAM callers, but it also blocks any unknown phone number you have never called or texted. So, you might want to think twice about enabling this if you’re expecting a call from someone from whom you haven’t received a call or text.

4) Telemarketers and spammers could be getting your phone number online

Your personal information is out on the web. If you want to make your personal information inaccessible, you might want to look into removal services. While no service promises to remove all your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for removal services here.

5) Manually block numbers from spam robocalls

Should an unknown number have called you and not left a voice message, it’s more than likely it was a robocall. While other robocalls go directly to voicemail with a threatening or enticing message, urging those truly vulnerable to act fast. Either way, you can manually block these numbers on an iPhone by:

  • Tapping the unknown number
  • Scroll down on your screen and tap “Block This Caller”
  • Tap “Block Contact”

MORE: HOW TO SEND SPAM CALLS DIRECTLY TO VOICEMAIL

6) Use your wireless carrier’s free spam and robocall-blocking service

Several wireless carriers provide their own free robocall scanning and blocking services. Among them:

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  • AT&T Call Protect – Available for iPhones and Androids, it lets customers manually block unwanted calls and labels suspected robocalls as a “spam risk,” as well as making efforts to prevent unwanted calls from reaching you.
  • Sprint/T-Mobile Scam Shield – An app that labels all potentially dangerous calls as “Scam likely” and opens free controls for several anti-scam protections, including Scam ID, Scam Block and Caller ID. Additionally, the app also provides you with a second phone number for use instead of your private one, ideal for online shopping and helping you avoid calls from scammers as well as telemarketers.
  • Verizon Call Filter appHelps protect you from unwanted calls and lets you decide who can reach you. Call Filter also detects spam and blocks high-risk spam calls by forwarding them to voicemail.

7) Third-party spam-blocking apps

Several third-party apps can help protect you from scam artists. Among our most recommended include:

  • RoboKiller is an app that claims to reduce 99% of unwanted calls or texts. The app is not free for iPhone and Android users. However, it comes with a 7-day free trial, which might be worth checking out before investing.
  • Call Control is an app currently only available to Android users; the app helps you filter out unwanted callers by manually adding them to a blacklist.
  • Nomorobo: For those of you who still have a landline, thanks to a package deal with your internet providers, this app helps prevent robocalls from reaching you both at home and on the go. Currently free for VolP landlines, the basic mobile package currently starts at $1.99 a month.

Woman using her cellphone (Kurt “CyberGuy” Knutsson)

MORE: HOW TO IGNORE YOUR FRIEND’S TEXT MESSAGES AND PRETEND YOU NEVER SAW THEM

What about spam texts?

You might recall all 51 attorney generals backing a proposal by the Federal Communications Commission (FCC) to put an end to illegal and malicious texts. Since then, the FCC has included spam texts in do-not-call protections. More companies are also looking for ways to fine spammers. T-Mobile just introduced new fines for illegal spam texting this year. You can also block spam texts on an iPhone and Android following these steps.

How to block spam texts on an iPhone

  • Open the Messages app on your iPhone and then the message from the number you want to block
  • Tap the number or contact name at the top of the conversation
  • Tap Info
  • Scroll down and tap Block this Caller

How to block spam texts on an Android

Settings may vary depending on your Android phone’s manufacturer. 

  • Open the messaging app on your Android device
  • Find the spam message you want to block
  • Tap and hold the message until a menu appears
  • Look for an option like Block or Spam and select it
  • Confirm you want to block future messages from that sender

How to block texts using your carrier

Most carriers also offer options to block spam calls and texts, such as Verizon’s Block Calls & Messages, AT&T’s Secure Family and T-Mobile’s Message blocking. The exact steps to use these features will vary depending on your carrier.

Kurt’s key takeaways

While this settlement proves there are ways around the National Do Not Call Registry, it also highlights how important it is to have as many layers of security as you can. Each one protects you at a different level, ensuring spam calls and texts likely won’t head your way.

Are you worried about more companies skirting past the National Do Not Call Registry? How do you keep robocalls at bay? Let us know by writing us at Cyberguy.com/Contact.

For more of my tech tips & security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.

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Ask Kurt a question or let us know what stories you’d like us to cover.

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Copyright 2024 CyberGuy.com. All rights reserved.

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Resident Evil Requiem is still scary as hell on the Switch 2

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Resident Evil Requiem is still scary as hell on the Switch 2

It took me a while to recover from the first big scare in Resident Evil Requiem. There I was, hunched over with a screen inches from my face and headphones in my ears, when a gigantic woman began chasing me through a dimly lit hallway intent on, well, eating me. It was a heart-racing sequence, and when I finally got to a save room I had to put the game down for a few minutes. It was an early indication that Requiem was a great game, and further evidence that the Switch 2 is becoming a welcome home for third-party titles.

Since Nintendo’s latest console launched last June, there have been few chances to see how it directly stacks up to other platforms. The successful cross-platform launch of Tony Hawk’s Pro Skater 3+4 was a good early sign for the Switch 2, but Requiem might be the best test so far. It’s a blockbuster action-horror game launching simultaneously across the Switch 2, PS5, Xbox, and PC. And while there are certainly some compromises on Nintendo’s platform, Requiem is a surprisingly solid experience on the Switch 2.

Requiem brings together two different types of Resident Evil games: the fast-paced action of Resident Evil 4 and the more visceral first-person terror of Biohazard and Village. Those two sides are represented through two playable characters. RE4 hunk Leon returns as a grizzled action hero, while newcomer Grace is a more hapless FBI agent who does a lot of running and hiding. Impressively, you can seamlessly swap between viewpoints at any point, letting you experience Grace’s scares in first person or help Leon wield a chainsaw in third person (or vice versa).

On a purely functional level, I haven’t had any issues with the game on the Switch 2. There haven’t been any noticeable slowdowns or hitches, aside from one time when the corpse of a zombie butcher disappeared briefly, which gave me a scare thinking he’d come back to life after a tense shootout. But there’s been nothing game-breaking, and that’s been true in both portable and TV modes.

The main compromise, of course, is visual. Requiem on the Switch 2 simply does not look as good as it does on PC or the other consoles. There are a lot of blurry textures, particularly when you get up close to objects or walls, and things overall just don’t look as sharp or clear as they do on, say, a PS5. It’s especially noticeable in first-person mode when you’re up closer to objects and characters. I also spotted some wonky hair physics, with hair occasionally deciding to defy the laws of gravity and float whichever way it wanted. Again, none of these are game-breaking issues, but they do cut into the tension Requiem works so hard to build.

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This is a busy week for Resident Evil fans who also own a Switch 2. In addition to Requiem, Capcom has released belated ports of Biohazard and Village. And while these are older games, my experience was much the same. I played through the beginning area of Biohazard again for the first time in nearly a decade — which I regret, because it is so freaking scary — and it similarly performed well but was plagued by fuzzy textures and impossible floating hair.

Honestly, that’s about the best-case scenario for ports like these. We all know the Switch 2 is underpowered compared to its direct competitors, so a game like Requiem is always going to feel hamstrung in some way. A port of Requiem that’s good enough, even if it’s not the best version of the game, goes a long way to helping Nintendo continue to flesh out the Switch 2’s library, which has grown steadily in both size and quality despite a notable lack of major first-party titles from Nintendo. And let’s not forget the fact that what you lose in visual splendor you make up for in portability.

Requiem is a good sign for the Switch 2’s viability as a platform for major third-party games, but an even better sign would be seeing releases like this more frequently. We won’t have to wait too long to see the next big test: Capcom’s sci-fi action game Pragmata launches across most major platforms, Switch 2 included, in April. I can’t wait to see how hair floats in space.

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Trump’s science and tech man lays out White House’s global AI strategy

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Trump’s science and tech man lays out White House’s global AI strategy

NEWYou can now listen to Fox News articles!

U.S. policy is often reported through announcements, personalities and regulatory skirmishes. Far less attention is paid to the economic mechanisms that actually move structures and determine outcomes.

To understand how the White House is organizing a multipronged strategy for AI adoption and export, and how its pieces are meant to work together in practice, I had an exclusive sit down with Michael Kratsios, assistant to the president and director of the White House Office of Science and Technology Policy.

Tanvi Ratna: The fundamental issue you speak about at the summit is the widening AI adoption gap between the developed and developing world. What makes that a concern for the White House right now?

Michael Kratsios: The divergence in AI adoption between developed and developing countries is growing every day. We see the world in two broad categories, and different tools are needed for each.

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Developing countries are at risk of falling behind at a fundamental inflection point. That is why we urge them to prioritize AI adoption in sectors that deliver concrete benefits: healthcare, education, energy infrastructure, agriculture, and citizen-facing government services.

Michael Kratsios testifies before the Senate Commerce, Science, and Transportation Committee’s Subcommittee on Science, Manufacturing, and Competitiveness on Capitol Hill on Sept. 10, 2025. (Chip Somodevilla/Getty)

For too long, countries seeking development support faced a false choice. We believe the American AI Exports Program offers a different path: trusted best-in-class technology, financing to overcome adoption barriers, and deployment support, so governments can learn how and where to use these tools.

America remains the undisputed leader in AI, from GPUs to data centers to frontier models and applications. That leadership brings with it a responsibility to share the foundations of a new era of innovation. We stand ready to work with partners around the world so creativity, freedom and prosperity shape today’s technological revolution.

STATE-LEVEL AI RULES SURVIVE — FOR NOW — AS SENATE SINKS MORATORIUM DESPITE WHITE HOUSE PRESSURE

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Tanvi Ratna: A lot of governments say they want AI leadership. Your delegation came in talking about real AI sovereignty, rejecting global governance, and launching an export program with multiple prongs. What is fundamentally different about this approach, and how should countries understand the system you’re building?

Michael Kratsios: The hope of the United States is that the pursuit of real AI sovereignty, the adoption and deployment of sovereign infrastructure, sovereign data, sovereign models and sovereign policies within national borders and under national control, will become an occasion for bilateral diplomacy, international development, and global economic dynamism. The American AI Exports Program exists to make that happen.

Real AI sovereignty means owning and using best-in-class technology for the benefit of your people, and charting your national destiny in the midst of global transformations. We urge nations to focus on strategic autonomy alongside rapid AI adoption rather than aiming for full self-sufficiency. AI adoption cannot lead to a brighter future if it is subject to bureaucracies and centralized control.

PALANTIR’S SHYAM SANKAR: US MUST USE AI AS ‘SLINGSHOT’ AGAINST CHINA OR FACE ECONOMIC DEFEAT

We deeply believe that the best pathway for the developing world to fully realize the untold benefits of AI is through the adoption of the American AI stack. The American AI stack has the best chips, the best models and the best applications in the world, and that is what countries ultimately need to deploy AI effectively.

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Tanvi Ratna: When you say the American AI stack, are you talking about selling products, or shaping the foundation on which countries build while keeping sensitive data under national control?

Michael Kratsios: Working with the American AI stack allows nations to build on the best technologies in the world while keeping sensitive data within their borders. Independent partners are critical to unlocking the prosperity AI adoption can deliver. That is why the president launched the American AI Exports Program.

TRUMP ADMINISTRATION’S TOP ‘SCIENTIFIC PRIORITY IS AI,’ ENERGY SECRETARY SAYS

American companies can build large, independent AI infrastructure with secure and robust supply chains that minimize backdoor risk. They build it, and it belongs to the country deploying it.

Michael Kratsios, assistant to the president and director of the White House Office of Science and Technology Policy, speaks at the India AI Impact Summit in New Delhi on Feb. 21, 2026.

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Tanvi Ratna: If this is an adoption strategy, then cost and complexity become the bottlenecks. Your public remarks emphasize financing and deployment sophistication as the two biggest hurdles for developing countries. How are you actually removing those barriers?

Michael Kratsios: Developing countries face two major obstacles to AI adoption. One is financing. The AI stack is expensive. Through the energy and material demands of its infrastructure, it brings the digital transformation of our world back into physical reality. Data centers, semiconductors, power production all require real labor and real resources.

CHINA RACES AHEAD ON AI —TRUMP WARNS AMERICA CAN’T REGULATE ITSELF INTO DEFEAT

The second barrier is a deficit in the technical sophistication needed to deploy AI tools effectively. To address this, we announced a U.S. government-wide suite of support initiatives to facilitate global adoption of trusted AI systems, create a competitive and interoperable AI ecosystem, and advance the American AI Exports Program in both developed and developing partner nations.

Tanvi Ratna: Spell out that suite. What are the prongs, capital, integration, standards, execution, and which agencies are being activated?

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Michael Kratsios: We unveiled a new set of initiatives across the federal government supporting the American AI Exports Program, which was launched by executive order last July.

TRUMP CALLS FOR FEDERAL AI STANDARDS, END TO STATE ‘PATCHWORK’ REGULATIONS ‘THREATENING’ ECONOMIC GROWTH

The first new initiative within it is the National Champions Initiative. It is designed to include the leading technology companies of partner countries directly into the American AI stack. We want the best technologies from all our partners and allies to be part of that ecosystem wherever the American AI stack goes.

The second is a full suite of financing and funding opportunities. We are mobilizing support through the U.S. International Development Finance Corporation, the Export Import Bank, the Millennium Challenge Corporation, the U.S. Trade and Development Agency, and a new World Bank fund, with additional programs launched by Treasury and other parts of the U.S. government. The message is simple: this is serious. Every possible financing avenue is being brought to bear.

The third is the creation of the U.S. Tech Corps. It is a reimagining of how the Peace Corps can make an impact in the modern era. We are seeking Americans with technical backgrounds who can help deploy American technology abroad, because there is no better tool to drive economic development, health improvements, and quality of life gains than AI.

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WAR DEPARTMENT REFOCUSES ON AI, HYPERSONICS AND DIRECTED ENERGY IN MAJOR STRATEGY OVERHAUL

And finally, we believe one of the fastest ways to drive global adoption is through standards, particularly as the next wave of innovation centers on AI agents. How those agents communicate and coordinate their actions will benefit from unified standards, which is why NIST has launched a dedicated initiative.

Tanvi Ratna: The National Champions Initiative is easy to misunderstand. Critics hear American stack and assume dependency. Your framing suggests the opposite, integrating partner champions so countries do not have to choose between importing the stack and building domestic capability. Is that the point?

Michael Kratsios: Exactly. To integrate partner nation companies with the American AI stack and ensure that no country has to choose between completing the stack and developing domestic AI, we established the National Champions Initiative. Partners need the opportunity to build native technology industries, and facilitating that is a core part of the exports program.

TRUMP ADMIN WILL RECRUIT 1,000 TECHNOLOGISTS FOR ELITE ‘TECH FORCE’ TO MODERNIZE GOVERNMENT

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Tanvi Ratna: You have also criticized previous U.S. approaches to AI diffusion for restricting partners. What did that get wrong strategically?

Michael Kratsios: The previous approach treated partners as second-tier actors with significant restrictions on access to advanced technology. That was a lose-lose AI diplomacy strategy. It cut off partners from the best technology and limited American companies from competing globally.

Under President Trump, the United States is rethinking how it advances international development and how technology can deliver lasting impact. We believe both developed and developing countries can build sovereign AI capability if given the chance.

FOX NEWS AI NEWSLETTER: TRUMP ACTIVATES ‘TECH FORCE’

Tanvi Ratna: Let’s talk about the Tech Corps, because it would be easy to dismiss it as a feel-good addition. In your model, it sounds like an execution layer. What would these teams actually do on the ground?

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Michael Kratsios: These will be like Peace Corps volunteers, except the focus is on technology. We are looking for people with technical backgrounds who want to help implement AI solutions.

If a country wants to improve agriculture through precision farming, apply AI to healthcare systems to improve hospital efficiency, or modernize digital public services, American technologists through the Tech Corps and the Peace Corps will be able to support those efforts.

WE’RE ON OPPOSITE SIDES OF THE AISLE. BUT WE KNOW AMERICA MUST WIN THE AI RACE, OR ELSE

A lot of young people today care deeply about real-world impact. What is special about this moment is that the United States has incredible technology, the best chips, models, and applications, and we are being more deliberate about sharing it.

Tanvi Ratna: You put unusual emphasis on AI agents and interoperability. Why does the White House see standards as a strategic lever now?

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Michael Kratsios: The next wave of AI innovation over the next year or two will center on agents. How those agents communicate and orchestrate their actions would benefit greatly from unified standards. NIST has launched an initiative to develop standards for agents, so these systems can interoperate securely and effectively.

IN 2026, ENERGY WAR’S NEW FRONT IS AI, AND US MUST WIN THAT BATTLE, API CHIEF SAYS

Tanvi Ratna: You also linked this export architecture to supply chains, from chips to data centers to power and minerals. Where does Pax Silica fit? Is it the hard backbone complement to the adoption layer?

Michael Kratsios: Pax Silica is a broader alliance focused on supply chain challenges that the United States and many partner nations have faced. It is a small, select group of countries working together to alleviate these challenges. India is a tremendous addition.

AI adoption depends on secure physical inputs. The AI stack is tangible: data centers, semiconductors, power generation. Pax Silica helps address those vulnerabilities while the exports program accelerates adoption. They are complementary.

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Tanvi Ratna: Since India hosted the summit and joined Pax Silica, what role do you see for India within this strategy?

Michael Kratsios: India is a technology powerhouse. It graduates an incredible number of engineers, has deep domestic talent, and is building strong products and applications. We look forward to working with them.

India has long been a strong partner in how the United States shares technology abroad. Our major hyperscalers have data centers and research operations here and employ large numbers of Indian engineers. We believe many Indian companies can ultimately become part of the American AI stack.

Tanvi Ratna: When critics frame this as being about China, you resist that characterization. How does the administration view competition?

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Michael Kratsios: We do not see this as being about any one competitor. This is about the fact that the United States has the best AI technology in the world, and many countries want it in their ecosystems. We are excited to share it and build mutually beneficial partnerships globally.

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Meet the Pentagon’s AI bro squad

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Meet the Pentagon’s AI bro squad

Hello and welcome to Regulator, a newsletter for Verge subscribers covering the broligarchs, the influencers, and the (potentially conscious) artificial intelligence models scrambling for power in Washington. If you’re not a subscriber yet, assert your humanity against the will of the machines by signing up here.

Very important news: Do you want to tell me stuff and see it printed in Regulator? Well, now you can, because we have a new tip line! Send all commentary, cool information, and ~secrets~ to tina.nguyen+tips@theverge.com.

The Pentagon’s private-sector A-Team

This morning, in advance of a meeting between Defense Secretary Pete Hegseth and Anthropic CEO Dario Amodei, my colleague Hayden Field and I published a story about the Pentagon’s hardball contract renegotiations with Anthropic. The stakes are higher than it should reasonably be, with the Pentagon continuing to designate Anthropic a “supply-chain risk” if the company doesn’t comply with their demands about their acceptable use policy.

In a post-meeting readout, Axios reported that Hegseth brought several other senior Defense officials to the meeting in an attempt to show that the Pentagon was taking the dispute “seriously.” But in a post-DOGE Trump administration run by broligarchs, it’s always worthwhile to check the attendees’ bios. Some of them were normal senior officials who’d spent their careers in government and military work, but the others have somewhat unusual backgrounds:

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  • Pentagon CTO Emil Michael, who we reported has been spearheading negotiations with Anthropic. Michael may be familiar to longtime Verge readers and followers of Silicon Valley corporate drama as the former second-in-command at Uber when Travis Kalanick was CEO. Michael was pushed out in 2017 after an investigation found that he, and several other top executives that called themselves the “A-Team,” perpetuated a culture of sexual harassment at the company.
    • For anyone curious about his history on surveillance: During a 2014 dinner with several journalists, Michael suggested that Uber hire opposition researchers to gather personal “dirt” on reporters publishing unfavorable news, suggesting that he’d wanted to target one female reporter who had recently criticized the company for its culture of misogyny. This was also around the time that Uber drew controversy for an internal tool known as “God Mode,” which employees used to track the movements of its users, including one BuzzFeed journalist who was writing about an Uber executive.
  • Deputy Secretary Steve Feinberg, the founder of the private equity firm Cerberus Capital Management, which manages roughly $65 billion in assets and specializes in “distressed properties.” Feinberg, who’s widely blamed for the death of the auto manufacturer Chrysler, was also an early supporter of Donald Trump, donating to his 2016 presidential campaign and serving on the president’s intelligence advisory board in 2018. During his 2025 Senate confirmation hearing, Feinberg touted Cerberus’ investments in several companies involved in national security, saying he had “significant experience with the Pentagon as a contractor and understand[s] how it functions and is organized.”
    • At the time, Democrats raised concerns that Feinberg would have conflicts of interest due to Cerberus’ numerous investments in defense companies such as DynCorp. (That year, DynCorp settled a lawsuit with the Department of Justice over allegations that it had “knowingly inflated subcontractor charges under a State Department contract to train Iraqi police forces.”)
    • In 2023, while Feinberg was still at Cerberus, the firm launched Cerberus Ventures, a venture capital arm that invests in early-stage companies that address national security issues in critical infrastructure.
  • Hegseth’s chief spokesperson, Sean Parnell, an Army veteran who, in 2021, attempted to run for an open Senate seat in Pennsylvania. While he won Trump’s endorsement in the heated Republican primary, he was forced to drop out in November after his ex-wife made several allegations of serious physical and psychological abuse during a custody hearing. She was afforded full legal custody. (Dr. Mehmet Oz, now serving in the Trump administration, subsequently won the nomination.)

Feinberg and Michael’s presence should draw eyeballs. Yes, they both have some amount of defense industry experience: Michael was a White House fellow during the Obama administration, and spent two years as a special assistant to Defense Secretary Robert Gates at the Pentagon, which isn’t nothing. Feinberg has clearly spent time with defense contracts. But one must fully appreciate the rapacious business mindset that private sector types love to bring into the government — especially with high-stakes negotiations such as this. Parnell’s presence, meanwhile, makes sense within the context of “being the spokesman for Pete Hegseth.”

The single-supplier shuffle

One topic Hayden and I didn’t get to explore more was the “single-supplier vulnerability” issue, but it’s turning into a crucial factor in negotiations.

In 2024, the Biden administration released a national security memorandum on the use of artificial intelligence, which laid out several directives regarding the protection of the supply chain. Among them was a directive for the Department of Defense to maintain contracts with at least two frontier AI labs that were cleared to handle classified information, in order to prevent a scenario where one compromised vendor could take down an entire IT system. But as early as the summer of 2025, I’m told, the Trump administration was trying to address that vulnerability. While they had signed separate contracts with Anthropic, Google, xAI, and OpenAI, only Anthropic’s model was cleared for classified use when Hegseth published his memo outlining his new AI policy in January.

This has placed the Pentagon in a tight situation: Even if they successfully cut out Anthropic and go through the arduous process of making every defense contractor remove Claude from their workflows, they would risk being out of compliance with the Department’s own guidelines, to say nothing of common sense. (Avoiding single-supplier vulnerability is a very basic practice in the tech industry.)

It certainly provides more context to the Pentagon’s decision last night to suddenly grant xAI’s Grok access to classified systems, even though Grok is widely considered the least capable of the available models. While The New York Times reported that Google is also close to signing a deal allowing the Pentagon to use Gemini for classified work, defense insiders view Gemini as a quality rival to Claude, while xAi’s Grok “is not considered as advanced or as reliable as Anthropic’s.” OpenAI is not close to a deal, as the company reportedly believes that it must improve ChatGPT’s safety features before deploying it on classified networks.

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So let’s do the math. You have four AI models, and you’re required to work with two of them. Your choices are:

1) A company with a pretty good AI model and increasingly flexible morals

2) A company with the best AI model, but which refuses to let you use it for autonomously killing people without human input

3) A company whose AI model isn’t secure enough to deploy yet

4) A company whose AI has racist hallucinations and generates child porn, and that you don’t consider “advanced [or] reliable”

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If you can’t contract with companies 2 and 3, you’re stuck with companies 1 and 4, which even Defense officials admit is not optimal from a national security perspective. “The only reason we’re still talking to these people [Anthropic] is we need them and we need them now. The problem for these guys is they are that good,” a Defense official told Axios ahead of the meeting.

The latest Clarity Act negotiations between finance and crypto last week inadvertently turned into the latest episode of recurring segment I’m now calling: “Why is Laura Loomer tweeting about obscure deep-cut tech issues as if they are MAGA loyalty tests?”

Last Thursday, a small group of powerful crypto and finance players met at the White House to continue hashing out draft language over stablecoin yields. Coinbase, which sparked these negotiations after it withdrew support from Clarity over stablecoin yields, was in attendance. Prior to the meeting, however, Loomer tweeted a classic banger that demonstrated the tactics she uses to wield influence over Trump: Cast the target as someone who once supported Trump’s enemies and is therefore disloyal.

Screenshot via @LauraLoomer/X.

Ironically, Coinbase has turned into one of the biggest branded boosters of the Trump administration, donating money to his pet initiatives and even having their logo splashed all over last year’s military parade.

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Though Loomer tweeted a similar sentiment about Coinbase last June, it seems to have had no impact on whether Coinbase has access to Trump, and likely won’t for a while: I’m told that CEO Brian Armstrong was at Mar-a-Lago the day before Loomer tweeted, attending a World Liberty Financial event.

A wild Trumpworld character has appeared!

If you followed the saga of Logan Paul auctioning off his Pokémon card collection, you may be aware that one of those cards sold for a record-setting $16.5 million last week. But who’s that Pokémon purchaser? It’s AJ Scaramucci, the son of the one and only Anthony Scaramucci, the New York financier and former Trump ally who famously served as Trump’s White House Communications Director in 2017 for 10 days.

AJ is the founder of Solari Capital, which invested $100 million in a Bitcoin mining platform run by Eric Trump. He also now owns the Pikachu Illustrator card, one of only 39 cards in existence and in Grade 10 condition, as well as the diamond chain and carrying case that Paul wore to display the card when he appeared at WrestleMania 38. Scaramucci told reporters that he purchased the card as part of his upcoming “planetary treasure hunt,” adding that he also hoped to purchase a T. rex skull and the Declaration of Independence. (He later posted on X that he hoped to place the card in the Nintendo Museum in Kyoto and cement it as “the ‘Mona Lisa’ of the Pokemon franchise.”)

Screenshot via @jedimooch/X.

Screenshot via @jedimooch/X.

We can’t believe that a court has to tell you this, much less the Southern District of New York: If you put correspondence between you and your lawyer into a publicly available AI platform, it is no longer protected by attorney-client privilege and becomes subject to discovery!!!!

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In any case, have a pleasant State of the Union watch party (if anyone does that anymore) and see you next week.

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