CLAUDE JUST GOT BANNED

Well, breaking news. As I was recording this video, this comes out and Anthropic might officially be cooked. I actually had to wrap up the video and then record this. This is what they mean by stop the presses back from the newspaper days. I had to stop the presses. Here's what happened. Donald Trump just gave this statement on Truth Social. The United States of America will never allow a radical left woke company to dictate how our great military fights and wins wars. That decision belongs to your commander-in-chief and the tremendous leaders I appoint to run our military. The leftwing and nut jobsic have made a disastrous mistake trying to strongarm the Department of War and force them to obey their terms of service instead of our Constitution. Their selfishness is putting American lives at risk and our troops in danger and our national security in jeopardy. And he basically pulls the plug. This happened 30 minutes before the deadline that Anthropic was given. He's saying that he's directing every federal agency in the United States government to immediately cease all use of anthropics technology. We don't need it. We don't want it and will not do business with them again. There will be a sixmonth phase out period for agencies like the Department of War who are using Anthropics products at various levels. Enthropic better get their act together and be helpful during this phase out period or I will use the full power of the presidency to make them comply with major civil and criminal consequences to follow. We will decide the fate of our country, not some outofc control radical left AI company run by people who have no idea what the real world is all about. So, this occurred just as I was about to wrap up recording this video. So, we kind of know how the story ends. But in the video, I talk about the different perspectives that people had on this issue, who's wrong, who's right, and what's going to happen to Anthropic if the plug is pulled. So, everything in the video is still relevant except for the fact that this is no longer a hypothetical situation. All of this is happening. Let me know what you think. I'm curious to know what everybody thinks. Please, please, please post a comment below. Even if you don't have a strong opinion one way or another, just say that. I'm very curious how people are perceiving this this this conflict and and the outcome. All right, let's dive in. So the world is waiting with a baited breath as we approach the deadline in the standoff between Anthropic and the US government, specifically Pentagon and the Department of War. Roy Bahhat on X posted this camera footage outside Anthropic's office in San Francisco. Lots of outpouring of support for what Anthropic is doing. I can't verify if this is real or not. Looks legit. I don't know. But whatever is happening there kind of all the events and news that are surrounding this anthropic versus US government standoff, they are real and they are concerning for a lot of people. Let's uh dive deep. So for those of you just tuning in, here's a quick 10-second summary. Anthropic is in this historic standoff with the Pentagon. Defense Secretary Pete Segth gave Daario Amade until 5:01 p.m. Eastern time to allow the military unrestricted access to claude or face being labeled a supply chain risk losing all business and there's tons of other bad things that can happen to Anthropic if they choose not to comply. So there's kind of two sides to this. They're a little bit blurry some would say because we're not exactly sure. It's a little bit hard to tell if people are saying exactly what they mean. But basically, Anthropic is saying they their red line is they they don't want any mass surveillance of American citizens and that they don't want autonomous weapons without human oversight. There's a lot of support for this. A lot of people would say it's very reasonable. The Pentagon side is that they want to be able to use claw and whatever technology these defense contractors provide to be used for all lawful purposes with zero restrictions. as in the provider shouldn't have a say in what the government does as long as it's for all lawful purposes. Which, here's the thing, is also not unreasonable. It's not completely crazy to ask that if you if you purchase a a product or a service that you're allowed to use it for legal purposes as you see fit. So, while all of this is happening, the Pentagon, the Department of War, they're prepared to go through on their threats. In the last 48 hours, Pentagon went to Boeing and Lockheed to assess their exposure to anthropic. So what does that mean? So basically the Pentagon is laying the groundwork to designate anthropic as a supply chain risk. So this is no longer just a a threat. It's active preparation. So Boeing and Lheed Martin are two of the biggest defensive contractors in the world. The Pentagon goes to them says, "Hey, how much are you relying on Anthropic? If we pull Anthropic, what breaks?" Loheed Martin, by the way, confirmed that there was this outreach from the Pentagon. Boing is saying that they don't have an active contract with Anthropic. So, the important thing to understand here is that this is a a big deal. This isn't like, oh yeah, they just lose a few contracts here and there. This could be the the end of Anthropic as we know it. Hey, we'll come back to that in just a second. But if you're watching this channel, you're probably the type of person that doesn't just follow the herd. You do your own research and think for yourself. 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And those commercial customers, enterprise customers, they're anthropic bread and butter. that the reason why their revenue has been growing like 10x per year. The Pentagon labels this company a supply chain risk which is like this designation that's more for like foreign almost not enemies of the state but like kind of like some Chinese manufacturers that we want to be careful with just in case you know we we use our products to build into the infrastructure of the system. So it's meant for like foreign adversaries almost. So if Anthropic gets labeled that it could mean maybe their revenue doesn't go to zero but it could really it. And of course, Enthropic is planning to IPO this year. So that would probably cancel those plans and prevent the IPO. They would force every defense subcontractors to stop using Claude, even for just productivity tools, you know, accessing through the web, etc. So if you're running the books for some portion of US defense or or any federal place, you you might be forced to not use Claude for for any of that work. Meanwhile, email Michael, who's the under secretary of defense. He goes on Twitter, on social media, and saying Dario Ammedday is a liar and has a god complex. He wants nothing more than to try to personally control the US military. And he also surfaced Claude's old constitution, mentioning nonwestern perspectives, framing anthropic as ideologically compromised. Elon Musk weighs in, so he's posting that Anthropic hates Western civilization. Now, it's important to understand that XAI already agreed to the Pentagon's terms. XAI is a winner if anything happens to to Anthropic, their their competitors. So, any loss for Enthropic or getting removal from the federal system does benefit XAI. So, there's that angle to consider. Meanwhile, 330 Google and OpenAI employees sign an open letter saying we will not be divided. They're saying the Pentagon is negotiating with Google and OpenAI to try to get them to agree to what Anthropic has refused. They're trying to divide each company with fear, right? So maybe just take one company, kind of make an example out of them so that everybody else falls in line. So for some people, they might be saying, okay, obviously anthropic Dario, they're kind of being primadonas. They're trying to sort of blow this out of proportion. Again, there's some portion of people that are saying that. Here's kind of an an interesting counter example that I thought surprising to see. So, General Jack Shanahan, who is the former head of Pentagon's Project Maven, he's saying, "I was square in the middle of Project Maven and Google, yet I am sympathetic to Anthropic's position more so than Google's in 2018. They're not trying to play cute here." So, my read is he's saying what Google pulled with the kind of working with the Department of Defense back in 2018 and that was kind of like playing cute, melodramatic, overblown, whatever. He's saying anthropic is is not doing that. And this is coming from a a general, former head of Pentagon's at Project Maven. This to me was a a very interesting point because Lieutenant General Jack Shanahan, retired, he's arguably the single most credible voice on this topic in America because he's been through a lot of this. He doesn't have a horse in this fight, a dog in this fight. I whatever the expression is, like he doesn't care. He's kind of a third party. But he was the founding director of the Pentagon's joint artificial intelligence center. And before that led project Maven that was the department of defense first major AI initiative and that was the last time that Silicon Valley and the Pentagon had a massive collision like this. So started in 2017, Pentagon launches project Maven. This was a project to get Google's AI to analyze various drone surveillance footage to improve targeting. Shanahan ran that project, started it, etc. But when Google employees got wind of this happening, there was a revolt. 4,000 Google employees signed an internal letter to Cinder Pichai demanding that Google pulls out of this, stating Google should not be in the business of a war. Multiple employees just resign. They just leave. Others refuse to work on this project. And ultimately, Google just declined to renew that contract less than a year after starting it. And then Google then publishes their famous AI principles basically saying that they're not going to build AI for weaponry. So all that happened, you could say to Shanahan in a way, right? So he was in charge of that Pentagon project. It failed or at least it failed to go through with Google. So he was on the receiving end of that backlash. So when he's saying that he's more sympathetic to what Anthropic is going through and less so to what happened in that situation with Google, that's kind of saying a lot it seems like. So his kind of key points why this is different is that cloud is already deployed across the government including in classified settings. So Anthropic isn't refusing to work with the military. Google was just completely refusing to work with the military. He's also saying that anthropics the red lines that they have the two of them they're perfectly reasonable. No mass surveillance, no autonomous weapons without humans. And that LM are simply just not ready for prime time in national security settings. meaning that we're still seeing a lot of issues, a lot of hallucinations, a lot of problems. These AI agents, as I like to say, they tend to derp out and that doesn't seem to be going away if if you're working with a lot of these things like the how smart they get is rapidly increasing, right? So, when they're smart, they're they're getting smarter and smarter, but when they do something silly and unreasonable, that's still there. like the the smartest models I work with still every once in a while do something complete derpy and you're like what were you thinking? So obviously kind of translating that if you think about that kind of translating that into a war environment when where people's lives are on the line. Well, you can't have that. It's just unreliable for life and death situations. So Shanahan basically finds Anthropic's position a lot more defensible, if you will. It's a lot more reasonable. They're not boycotting working with the government just broadly. They're they're saying, "Hey, like we're engaged. We're we're here. We don't want to cross these red lines." And finally, Friday morning this morning, Sam Alman is on CNBC saying that for all the differences I have with Anthropic, I mostly trust them as a company. And uh they do seem to have a lot of differences at the tech convention in India. There was this kind of cringy moment where Sam Alman and Dario Amade they're standing on stage with a lot of other leaders in the space and they're standing side to side and all the people they take their hands and they kind of lift them up in the air and that was supposed to be the sign that everybody's united and the only two people not holding the hand of the next person next to him was was Sam Alman and and Daario like they linked arms and as far as I could tell from the body language I mean it was Daario. It really to me seemed like he was the one that's like, "Nope, I'm not touching Sam all." And again, tell me if you saw it differently. That's subjective, right? That's not a fact. That's just what I saw. It seemed like Sam was looking over like, "Hey buddy, you want to hold my hand?" And Dary was like, "Gh, no." That that's what it seemed like to me. It's a subjective, not a fact. Again, now the other player here is Palanteer. So, Palanteer is Alex Karp's company. They provide various intelligence services for the United States federal government, Department of Defense, etc. And Palanteer's role in all this kind of points to something interesting in how AI works in these military applications and that is that the AI companies don't control deployment. So Enthropic builds claude and sets its usage policies etc. But once it's inside a palenteer's platform on classified networks, it really seems like Enthropic has very limited visibility into how that technology is used. they have to trust the middleman which is Palanteer and you know the end user Pentagon to to respect the guard rails and so kind of that trust broke down after the Maduro raid. As far as we know some leak from inside the government alerted people that tropics Claude was used in that raid and therefore Claude was engaged in a lethal military operation in some way. It was somehow involved in that process. So some anthropic employees met with some executives from Palunteer and they raised some questions. They said, "Hey, is this true? How's Claude being used?" This is kind of what triggered the whole thing. Basically, Palanteer kicked it up the chain. Again, we don't know exactly what happened in that room, but it might have been just, you know, questions. Maybe it was more pointed questions. Maybe it was more we demand to know type of questions. I'm not sure. But whatever the case, Pentagon saw that as an attempt by this AI company to control and oversee military operations. And now we're here. This is how we got here. Alex Karp, interestingly, has been quite silent on this whole matter. He's not touching it with a 10-ft pole, as they say, from what it seems like. He's not getting between Pentagon and this $200 million contract. Alex Karp is an interesting character, very polarizing character. He's one of those people that manages to get both sides mad at him, you know, on the political divide, political spectrum. I tend to kind of like people like that. I I tend to give him respect because at the very least, you know, that they have a a brain and they're using it to form their own opinions. So, in the past, he gave interviews saying that, you know, in Silicon Valley there are, you know, groups or individuals, certain people that think that they should control how the country functions. He says that they want to tell people what to eat, how to vote, what to believe, etc. And and then they're willing to use the kind of technology companies to kind of push their philosophies on the rest of America. Again, that's his interview at Davos. I'm not taking it out of context. That's more or less what he's saying. Also, the next sentence, he's talking about the things that he disagrees on with the Trump administration. So, he's he's firing at both sides. And I I tend to like people like that and trust them a little bit more than people that are just like really entrenched in one opinion or the other, but he's been pretty quiet about the whole thing. And again, I'm sure some of you watching maybe don't like Alex Karp. I totally get it. I'm just saying he's not one to not say his opinion out loud, you know, while like rocking back and forth. It just he's going to yell his opinion out. >> Well, I love the idea of getting a drone and having light fentinyl laced urine spraying on analysts who tried to screw us. So, if he's speaking on something, you know, you're getting kind of like the the raw feed. It's not filtered. He's not a very filtered person. And as I'm recording this, I actually had to take a quick break in the middle of recording this. So, it is now 50:01 Eastern time and the deadline has passed. But even before the deadline has passed, Anthropic's fate has been sealed because Trump orders the government to stop using Anthropic after Pentagon standoff. This happened about half an hour before the deadline. So, this is going to be kind of a weird video because I have to now, you know, add this probably at the beginning. So, I'll sign off here, but let me know what you think about this. So, keep in mind this is 5:00 p.m. Eastern as I'm writing this. Let me know what you think about this whole thing. Are you sad about what happened to Anthropic? Because this could really set an accord towards its doom, if you will. Do you think that they deserved it? This is a self-inflicted wound. Let me know in the comments and uh thank you for tuning in. I will see you in the next