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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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This weekend’s scheduled Blue Origin rocket launch is rather momentous. Success would signal an end to SpaceX’s monopoly on reusable orbital launch vehicles, and set up a three-way race to make that “No Service” indicator on your phone disappear forever.
On Sunday morning, Jeff Bezos’ massive New Glenn rocket is scheduled to launch with the first-stage booster that launched and landed on the program’s second mission last November. It’s a critical test, because cost-effective booster reuse is what’s made SpaceX’s Falcon 9 so dominate.
Amazon desperately needs a reusable rocket of its own to accelerate its Leo launches. Without one, it’s only been able to launch 241 Leo satellites, putting it well behind schedule. In that same 12-month time period, SpaceX’s Falcon 9 rocket was able to deploy over 1,500 satellites to its Starlink constellation.
Sunday’s mission will carry AST SpaceMobile’s BlueBird 7 satellite to low Earth orbit. Instead of blanketing the region with thousands of small satellites like Amazon and SpaceX, AST’s plan is to deploy fewer satellites that are much more powerful. Bluebird 7 features a massive 2,400-square-foot phased-array antenna, making it the largest commercial communications array ever deployed in low Earth orbit. It’s essentially a cell tower in space, and will be the second of the company’s “Block 2” next-generation satellites to launch.
The BlueBird 7 is designed to provide 4G and 5G broadband, at speeds exceeding 120 Mbps, to the phones we already carry. AST plans to have 45 to 60 satellites launched by the end of 2026. When AST lights up its service sometime this year, it will be in direct competition with Starlink’s direct-to-cell service, already operating with T-Mobile in the US, and Globalstar, the satellite network snapped up by Amazon that keeps iPhones and Apple Watches communicating in dead zones.
Cyber expert shares tips to avoid AI phishing scams
Kurt ‘The CyberGuy’ Knutsson shares practical ways to avoid falling victim to AI-generated phishing scams and discusses a report that North Korean agents are posing as I.T. workers to funnel money into the country’s nuclear program.
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You probably think your messages are safe. After all, apps like WhatsApp, Signal and Telegram promote strong encryption.
But a new warning from the Cybersecurity and Infrastructure Security Agency and the Federal Bureau of Investigation shows that attackers do not need to break encryption at all.
Instead, they are going after you.
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FBI WARNS ABOUT FOREIGN APPS AND YOUR DATA
A new federal advisory says phishing campaigns tied to Russian intelligence are going after messaging app users instead of trying to break encryption. (MStudioImages/Getty Images)
What the FBI and CISA just revealed
According to the joint advisory, cyber actors tied to Russian intelligence are running large-scale phishing campaigns targeting messaging apps.
These attacks are not random. They have focused on high-value targets like government officials, military personnel and journalists. However, the tactics can easily spread to everyday users.
Here is the key takeaway: Hackers are not cracking the apps themselves. They are tricking people into giving up access.
How these messaging app attacks actually work
This is where it gets interesting and a bit unsettling. Instead of breaking encryption, attackers use phishing to gain control of individual accounts. Once inside, they can:
- Read private conversations
- Access contact lists
- Send messages as if they were you
- Launch new scams targeting your contacts
It becomes a chain reaction. One compromised account can quickly lead to many more. In some cases, attackers impersonate trusted contacts. That makes the scam feel real and urgent.
Why encryption is not enough anymore
Encryption still matters. It protects messages as they travel between devices. But here is the problem. If someone logs into your account, they see everything just like you do.
That means even the most secure app cannot protect you if your login gets compromised. This is a shift in how cyberattacks work. The weakest link is no longer the technology. It is human behavior.
AI IS NOW POWERING CYBERATTACKS, MICROSOFT WARNS
The FBI and CISA are warning that attackers are targeting users of encrypted messaging apps by tricking them into handing over account access. (BackyardProduction/Getty Images)
Who is at risk from messaging app phishing attacks
While the advisory highlights high-profile targets, the tactics are not limited to them.
If you use messaging apps for:
- Personal conversations
- Work communication
- Sharing sensitive information
You are a potential target. Phishing works because it relies on simple mistakes. A quick tap on the wrong link is often all it takes.
What this means for you
This warning highlights a bigger trend. Cyberattacks are becoming more personal. Instead of attacking systems, hackers are targeting people directly. That makes awareness your strongest defense. The more you understand how these scams work, the harder it becomes for attackers to succeed.
Ways to stay safe from messaging app phishing attacks
You do not need to be a cybersecurity expert to protect yourself. You just need to slow things down and follow a few smart habits.
1) Be skeptical of unexpected messages
If a message feels urgent or out of place, pause. Even if it looks like it came from someone you know.
2) Never click suspicious links
Avoid links sent through messages unless you can verify them independently. Strong antivirus software can help detect suspicious behavior after a compromise. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com.
3) Turn on two-factor authentication
Two-factor authentication (2FA) adds a second layer of protection even if your password gets exposed.
TECH GIANTS UNITE TO FIGHT ONLINE SCAMS
Officials say hackers can read messages, access contacts and impersonate users once they gain control of a messaging app account. (FreshSplash/Getty Images)
4) Watch for login alerts
Many apps notify you when a new device signs in. Do not ignore these warnings.
5) Verify requests in another way
If a contact asks for something unusual, call them or confirm through another channel.
6) Use a data removal service
Limit how much of your personal information is available online. Data removal services work to delete your data from broker sites, making it harder for scammers to target you with convincing phishing messages. 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.
7) Keep your device and apps updated
Install updates regularly. Security patches fix vulnerabilities that attackers can exploit after gaining access.
Kurt’s key takeaways
Messaging apps feel private. They feel secure. That sense of comfort is exactly what attackers are counting on. The technology is still strong. The real question is whether your habits are keeping up. So the next time a message pops up that feels slightly off, trust that instinct and take a second look.
Have you ever received a suspicious message that made you stop and question if it was real? Let us know by writing to us at Cyberguy.com.
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YouTube is making some changes that might affect how you share videos from the mobile app. From the app, you can finally share videos from a specific timestamp, which will make it easier to point someone to a part of a video you might want them to see while you’re on your phone. However, this change will replace the Clips feature that lets you make a shareable clip from a video.
You’ll still be able to watch any Clips that you’ve already made. But moving forward, “the ability to set an end time or include a custom description when sharing will no longer be available,” YouTube says. The company notes that while clipping is “important way for creators to reach new audiences,” it says that “a number of third-party tools with advanced clipping features and authorized creator programs are now available to do this across different video platforms.”
The company originally introduced the Clips feature in 2021.
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