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Technology
Meet the Pentagon’s AI bro squad
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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:
- 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.
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”
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.
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.
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.”)
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!!!!
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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Reviews of Crimson Desert have been mixed, but the bigger issue for the game has been the discovery of what appeared to be AI-generated assets in the final release. Now the developer has acknowledged that AI art was indeed used during the game’s creation, but says that it was intended to be replaced before release. In a statement on X, the company said it was conducting a “comprehensive audit” to identify and replace any AI-generated content.
The company apologized for both its inclusion in the final release and for not being more transparent about its use during development. “We should have clearly disclosed our use of AI,” it said.
The use of generative AI in gaming has become a hot-button issue of the last couple of years as it’s made its way into several high-profile titles. While some large studios have embraced it, many smaller developers have revolted against the trend, proudly proclaiming their games to be “AI free.”
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Most of us have received a random text that makes us pause for a second. Maybe it promises a prize. Maybe it claims to be from a delivery company. Lately, another type of message is spreading quickly: the remote job scam.
That is exactly what happened to Peter from New York. He wrote in after receiving a suspicious message about a high-paying YouTube job.
Here is what he sent:
“I received this text today, and I think it’s a scam. How can I tell for sure, and what do I do next?”
Below is the message Peter received. At first glance, it looks like a job opportunity. However, when you break it down line by line, several warning signs appear. Let’s walk through them.
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FAKE GOOGLE SECURITY PAGE CAN TURN YOUR BROWSER INTO A SPYING TOOL
A suspicious text message promises up to $10,000 a month for boosting YouTube video views. Offers like this are a common sign of a job scam. (Kurt “CyberGuy” Knutsson)
Red flag 1: A random job offer from a stranger
The text comes from an unknown international phone number starting with +63, which is the country code for the Philippines. Legitimate companies rarely recruit through random text messages from unknown numbers. Real employers usually contact candidates through job platforms, email or professional networks like LinkedIn. When a job appears out of nowhere and promises high pay, it should immediately raise suspicion.
Red flag 2: The pay is wildly unrealistic
The message claims:
- $200 to $600 per day
- $10,000 or more per month
Those numbers are a major warning sign. Entry-level remote work, such as “boosting video views” or “YouTube optimization,” does not pay anywhere near that range. Scammers often use unusually high pay to trigger excitement and urgency. When money sounds too good to be true, it usually is.
Red flag 3: No experience required but huge income
The text says “no experience required, free paid training provided.” Scammers often combine high income with zero qualifications. That combination is designed to attract as many people as possible.
Real digital marketing jobs usually require:
- SEO or marketing experience
- Analytics knowledge
- Platform expertise
A company offering $10K per month with no requirements is not realistic.
BE AWARE OF EXTORTION SCAM EMAILS CLAIMING YOUR DATA IS STOLEN
Scammers often claim no experience is required and that training is provided. The goal is to lure you in quickly before you start asking questions. (Kurt “CyberGuy” Knutsson)
Red flag 4: The job description is vague
The text claims the job is to “increase video exposure and view count.”
That description is extremely vague. It does not explain:
- What tools you would use
- What company you would work for
- How the work is measured
Scam job offers often stay vague so they can adapt the story later.
Red flag 5: Pressure to respond immediately
The message says: “5 urgent openings available, first come first served.” This is a classic scam tactic. Urgency pushes people to respond quickly before they have time to research the offer. Real companies rarely hire qualified candidates on a first-come basis through text messages.
Red flag 6: The strange reply instructions
The message tells recipients to reply “OK” and then send a numeric code. This step is often used to move the conversation to another messaging platform, such as Telegram or WhatsApp, where scammers continue the scheme. Once the conversation moves there, victims may be asked to:
- Complete fake tasks
- Send cryptocurrency
- Pay deposits for “training”
These scams are often called task scams, where victims complete simple online tasks and may even receive small payments at first before scammers demand larger deposits for payouts that never come. They have exploded worldwide over the past few years.
Red flag 7: No company information
The message never names a real company. It mentions a “manager” named Goldie but provides:
- No company website
- No corporate email
- No office address
Legitimate employers want applicants to know who they are. Scammers avoid details that can be verified.
How these YouTube job scams usually work
Many of these scams follow the same pattern. First, scammers promise easy money for simple tasks lsuch as liking videos or boosting views. At the beginning, they may even send a small payment to build trust. Then things change. Victims are asked to deposit money to unlock larger payouts or complete “premium tasks.” Once payments are sent, the scammers disappear. The Federal Trade Commission says Americans lost hundreds of millions of dollars to job scams in recent years, and text message recruitment scams are rising fast.
Google warns about growing job scams and how to verify recruiters
We reached out to Google, and a spokesperson provided the following statement to CyberGuy:
“Google is aware of these job scams happening across the industry and believes they’re growing around the world. We strongly encourage any candidate, or individual receiving them, to exercise caution and report it to the platform you received it on as a phishing attempt and/or spam. Our recruiting team focuses on contacting candidates in official capacities and are very clear about who we are, why we’re reaching out, and do so from legitimate emails or profiles on job sites. Jobseekers should verify anyone contacting them by email addresses, looking up the person online, such as on LinkedIn, and if something does seem suspicious, flag it to the outlet where it was received. Folks can also vet and report these scams to Google at support.google.com. Our Google careers page reflects all of our current job postings, so candidates should check offers against those. Generally speaking, Google also continues to offer a range of tools and insights that help people automatically spot and avoid scams like these whether they receive them via email, search results, text messages, etc.”
FAKE GOOGLE GEMINI AI PUSHES ‘GOOGLE COIN’ CRYPTO SCAM
Messages that push you to reply immediately or move the conversation to apps like Telegram or WhatsApp are a major red flag. (Kurt “CyberGuy” Knutsson)
Ways to stay safe from job text scams
If you receive a message like Peter’s, here are some smart steps to take.
1) Never respond to unknown job texts
Replying confirms your number is active. That can lead to more scam messages.
2) Do not click links or download attachments
Scam texts sometimes include links that lead to phishing pages designed to steal login credentials or financial information. Install strong antivirus software on your devices, which can help detect malicious links, block dangerous websites and warn you before you open something risky. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com.
3) Reduce how easily scammers can find your information
Scammers often harvest phone numbers and personal details from data broker sites and public profiles. Using a data removal service to remove your information from these sites can make it harder for criminals to target you with job scams and other fraud. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com.
4) Research the company independently
Search for the company name online. Look for an official website, verified social media or job listings.
5) Avoid jobs that ask for money
Legitimate employers never require deposits for training, equipment or task access.
6) Block and report the number
You can report scam texts directly from your phone.
On iPhone:
Open the message, tap the phone number at the top of the screen, scroll down and select Block Contact. You can also tap Report Spam under the message. If the option appears, then click Delete and Report Spam, which sends the report to Apple and deletes the message.
On Samsung Galaxy phones:
Steps may vary slightly depending on your Samsung model and software version.
Open the Messages app and select the conversation. Tap the three-dot menu in the upper right corner, then tap Block and report spam, then confirm by tapping Yes. This blocks the number and helps Samsung identify and filter future scam messages.
7) Report it to the FTC
In the United States, you can report scams at reportfraud.ftc.gov. Reports help investigators track large scam networks.
So what should Peter do next?
The safest move is simple. Peter should not reply to the message. Instead, he should block the number and report it as spam. If he has already responded, he should stop communicating immediately and avoid clicking any links or sending money. If he shared personal information such as his phone number, email address or financial details, it may also be wise to monitor his accounts closely and consider signing up for an identity theft protection service. The good news is that spotting the red flags early can prevent a much bigger problem later. See my tips and best picks on Best Identity Theft Protection at Cyberguy.com.
Kurt’s key takeaways
Scammers constantly adapt their tactics. Today, it might be a fake delivery notice. Tomorrow, it might be a high-paying remote job. The message Peter received hits many of the classic warning signs: unrealistic pay, vague job duties, urgent language and a request to reply quickly. When a stranger promises easy money through a random text message, pause for a moment. That short pause can save you a lot of trouble.
Now I am curious. If a text suddenly promised you $10,000 a month for simple online tasks, would you recognize the warning signs before replying? Let us know by writing to us at Cyberguy.com.
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Technology
Halide co-founder is suing former partner Sebastiaan de With for taking source code to Apple
Lux Optics co-founder Sebastiaan de With made headlines when he joined Apple in late January. The company was behind Halide, one of the most popular photography apps for the iPhone, which gained a cult following for its robust pro-level controls.
Apple was apparently a big enough fan that it tried to acquire the developer last summer. Those talks never bore fruit, and eventually the company simply hired de With. At the time, it was widely believed that Apple had poached him from Lux. But new allegations from a lawsuit filed by co-founder Ben Sandofsky in the California Superior Court of Santa Cruz claim de With was fired for financial misconduct in December of 2025.
According to The Information, the suit “accuses de With of improperly using more than $150,000 in Lux corporate funds to pay for personal expenses,” as well as “taking Lux source code and confidential material with him when he joined Apple.”
An attorney for de With denied those claims and said that “The attempt to insert Apple into this dispute appears designed to create leverage and attract attention.“
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