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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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Technology

Acer’s launching a Linux handheld for streaming your PC games

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Acer’s launching a Linux handheld for streaming your PC games

The Acer Nitro Blaze Link might run on Linux, but it’s no Steam Deck. Acer says it’s a “streaming-first handheld and companion device,” like a PlayStation Portal for your PC. Announced ahead of Computex on Friday, it’s launching in Q4 2026 with a 7-inch (1920 x 1200) display, Wi-Fi 6, just 1GB of LPDDR4 RAM, and 8GB of eMMC storage. That’s technically not even enough RAM to run Stardew Valley, but the Blaze Link isn’t meant for playing games locally.

Logitech launched a similar handheld a few years ago, the Logitech G Cloud, that cost $350, included 4GB of RAM and 64GB of storage, and ran on Android. It was a tough sell at that price considering that its performance was dependent on a good internet connection.

Acer hasn’t yet announced a price for the Nitro Blaze Link. But its specs suggest it could cost significantly less than proper handheld gaming PCs — which have been skyrocketing in price — potentially offering a more affordable and streaming-first alternative.

Correction, May 29th: The Nitro Blaze Link was announced ahead of Computex 2026, not at it.

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Fake grant email promises $4.5 Million but could steal your identity

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Fake grant email promises .5 Million but could steal your identity

NEWYou can now listen to Fox News articles!

It shows up in your junk folder with a subject line that practically yells at you: “ATTENTION 1!!!” That alone should raise suspicion. Still, the message quickly escalates. It claims to come from the IMF (International Monetary Fund) and says you are approved for a $4.5 million grant.

That is where things start to fall apart. This type of scam is designed to trigger both excitement and urgency. It also pushes you to hand over sensitive information before you stop to think.

Let’s break down exactly what this email says and why each part signals trouble.

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NEW EMAIL SCAM USES HIDDEN CHARACTERS TO SLIP PAST FILTERS

A fake IMF grant email promises millions of dollars while asking recipients to share personal details and identity documents. (Rawf8/Getty Images)

The sender behind this IMF scam email

The email claims to be from the IMF. Yet the reply address is a Gmail account. That mismatch matters.

Legitimate financial institutions do not use free email services for official communication. They also do not ask you to reply to a personal inbox for something this serious.

Why the subject line is a warning sign

“ATTENTION 1!!!” is not how a global financial organization communicates. It is how scammers try to grab you fast.

Urgency lowers your guard. When you feel pressure, you are more likely to respond without verifying anything.

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The greeting reveals a mass email

The message opens with “Attention: Sir/Madam.” If your name were truly selected for a multimillion-dollar payment, the sender would use it.

Generic greetings often mean the email was blasted out to thousands of people.

How the story tries to hook you

The email mentions debts tied to contracts, inheritance, lottery and loans. That wide net is intentional.

It increases the odds that something in the message feels familiar. Once that happens, the scam starts to feel personal.

The $4.5 million promise is the bait

The promise of $4.5 million is not random. Large numbers create excitement. They also make you more willing to overlook obvious problems.

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Real financial grants do not appear out of nowhere like this.

YOUR EMAIL DIDN’T EXPIRE; IT’S JUST ANOTHER SNEAKY SCAM

Scam emails may use real organization names, official titles and urgent language to pressure people into responding quickly. (Pekic/Getty Images)

Why scammers use real names

The email mentions IMF Managing Director Kristalina Georgieva. That sounds official, which is the point.

Scammers often include real names or titles to make fake messages feel credible. It is a shortcut to trust.

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The writing and grammar feel off

Phrases like “Kindly reply me directly” and awkward sentence structure stand out. One odd sentence might not mean much. However, repeated issues like this point to a lack of professional communication.

Major institutions have strict standards for how they write.

The most dangerous request in this email

This email requests:

  • Full name
  • Address and location
  • Phone number
  • Age and occupation
  • A copy of your passport or driver’s license

That is everything needed for identity theft. Once someone has those details, they can open accounts, target you with more scams or impersonate you. 

The payment method adds false legitimacy

The email promises a bank-to-bank wire transfer. That detail adds a layer of realism. It also sets up the next step. Many scams later ask for “fees” to release the funds.

You send money, and the payment never arrives.

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Even the spam excuse is part of the scam

At the end, the email tries to explain away the biggest red flag: “If you have received this message in your SPAM/BULK folder, it is simply because your ISP has introduced restrictions. We urge that you treat it as a matter of urgency.” That is not a reassurance. It is a warning sign.

Scammers know their messages look suspicious, so they try to explain it away before you question it.

THE ONE THING SCAMMERS CHECK BEFORE TARGETING YOU ONLINE

Users should delete suspicious grant emails, avoid links and verify claims directly through official organization websites. (Photographer: Wei Leng Tay/Bloomberg via Getty Images)

How to stay safe from scam emails

Scams like this follow a pattern, and once you know what to look for, you can shut them down quickly before any damage is done.

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1) Ignore and delete the message

Do not reply or engage in any way. Even a quick response tells scammers your email is active, which can lead to more targeted attacks. The safest move is to delete it and move on.

2) Do not click links or download attachments

Scam emails often hide malicious links or infected files. One click can take you to a fake login page or install malware on your device. If you were not expecting the message, do not interact with anything inside it.

3) Use strong antivirus software

Strong antivirus software adds another layer of protection. It can flag suspicious emails, block dangerous websites and stop malicious downloads before they cause harm. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com

4) Never send personal documents

No legitimate organization will ask for your passport, driver’s license or other sensitive documents through an unsolicited email. Sending that information can open the door to identity theft and financial fraud.

5) Look closely at the sender

Do not rely on the display name alone. Check the full email address carefully for misspellings, random numbers or free domains like Gmail. Small details often reveal a fake. 

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6) Go directly to official sources

If the message seems important, verify it on your own. Type the organization’s website into your browser or use a trusted contact method. Do not use the links or contact details provided in the email. 

7) Remove your personal data from the internet

Scammers often rely on publicly available information to make their messages feel convincing. Data removal services can reduce what is out there, making it harder for criminals to target you in the first place. 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

8) Turn on two-factor authentication

Add an extra layer of security to your accounts. With 2FA enabled, a stolen password alone is not enough for someone to get in. This simple step can stop many attacks before they start.

9) Monitor your financial accounts and credit

Check your bank statements and credit reports regularly. Look for unfamiliar charges, new accounts or changes you did not make. Catching fraud early can limit the damage.

10) Consider placing a credit freeze

If you think your personal information was exposed, a credit freeze can help protect you. It prevents new credit accounts from being opened in your name without your approval.

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11) Add identity theft protection

Because this scam asks for your name, address, phone number, age, occupation and a copy of your passport or driver’s license, identity theft protection can help you spot trouble faster. A good service can monitor your credit files, alert you to new activity and help you recover if someone uses your information to open accounts or commit fraud in your name. See my tips and best picks on Best Identity Theft Protection at Cyberguy.com

12) Report the scam

Mark the email as phishing in your inbox. This helps your email provider block similar messages and protects other people from falling into the same trap.

Join CyberGuy Live: Lock Down Your Phone in 30 Minutes (Saturday, June 13, 10 am ET)

Your phone holds your email, passwords, photos, banking apps and personal data. In this free, live online class, Kurt the CyberGuy will walk you step by step through simple phone security fixes you can do in real time. You’ll learn how to improve your privacy settings, spot the latest phone scams, use trusted security tools and walk away with a simple checklist to stay protected. Register here: CyberGuyLive.com

Kurt’s key takeaways

This email tries hard to look official. It uses a real organization, a real name and a convincing story. Still, the cracks show up quickly once you slow down. A Gmail reply address, a massive payout, a vague greeting and a request for identity documents all point in the same direction. Scams like this rely on one thing: getting you to act before you think. Take a second look, and the whole thing falls apart.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

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If a message promises millions and asks for your personal information, would you pause long enough to question it, or would the urgency pull you in? Let us know by writing to us at Cyberguy.com

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  • Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox.
  • For simple, real-world ways to spot scams early and stay protected, visit CyberGuy.com trusted by millions who watch CyberGuy on TV daily.
  • Plus, you’ll get instant access to my Ultimate Scam Survival Guide free when you join.

Copyright 2026 CyberGuy.com.  All rights reserved.

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Blue Origin explosion is a major setback for NASA’s Moon plans and Amazon’s Starlink competitor

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Blue Origin explosion is a major setback for NASA’s Moon plans and Amazon’s Starlink competitor

While Blue Origin investigates the root cause behind last night’s spectacular explosion of its New Glenn rocket, it’s already clear that this will be a major setback for NASA’s Moon base plans and Amazon’s fledgling Leo space internet constellation.

The incident occurred at about 9pm at Blue Origin’s Florida launch site during a hot-fire test, where seven engines in the booster stage are lit while keeping the 322-foot-tall rocket fixed to the launchpad. The explosion and ensuing fireball severely damaged the only launchpad Blue Origin has for its New Glenn rocket.

“It’s too early to know the root cause but we’re already working to find it,” wrote Blue Origin boss Jeff Bezos on X. “Very rough day, but we’ll rebuild whatever needs rebuilding and get back to flying. It’s worth it.”

According to sources speaking to Ars Technica, the transporter-erector and one of the lightning towers at LC-36A may not be salvageable. “New Glenn almost certainly will not launch again in 2026, and frankly a launch during the first half of 2027 would be heroic given the launch site concerns,” writes Eric Berger, senior space editor at Ars Technica.

Such a delay would affect NASA’s Moon base plans. NASA announced on Tuesday that New Glenn would deliver a robotic lunar lander as soon as fall 2026. In 2027, Blue Origin is also scheduled to participate in the upcoming Artemis III mission, which will see astronauts docking their Orion capsule with lunar landers developed by SpaceX and Blue Origin.

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“Spaceflight is unforgiving, and developing new heavy-lift launch capability is extraordinarily difficult,” said NASA administrator Jared Isaacman on X. “We will work with our partners to support a thorough investigation of this anomaly, assess near-term mission impacts, and get back to launching rockets.”

The New Glenn rocket that exploded Thursday night was being prepped to carry 48 Amazon Leo satellites — the largest batch ever slated for a single launch — into low-Earth orbit on an upcoming mission. The satellites were not onboard.

To date Amazon has launched just over 300 of the 1,618 Leo satellites the FCC requires by July 30, 2026. Amazon has applied for an extension to keep its license.

Amazon had been counting on New Glenn’s massive payload capacity and reusable boosters to accelerate a launch schedule that is already behind. Without its primary workhorse, Amazon will be forced to rely more heavily on secondary providers like United Launch Alliance (ULA) and Arianespace — and its chief rival, SpaceX.

“Sorry to see this,” wrote fellow billionaire spaceman Elon Musk on X. “I hope you recover quickly.”

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