The Department of Defense announced Friday that it has finalized classified‑use agreements with OpenAI, Google, Microsoft, Amazon, Nvidia, Elon Musk's xAI and the startup Reflection. The deals will let the Pentagon employ each company’s artificial‑intelligence tools in secure environments as it seeks to become an "AI‑first" fighting force. Anthropic, previously cleared for classified work, was left out after officials labeled its technology a supply‑chain risk and the company refused to relax red‑line restrictions on surveillance and autonomous weapons. Read more →

Microsoft and OpenAI announced a renegotiated partnership that replaces the exclusive license Microsoft held on OpenAI's models with a non‑exclusive arrangement lasting until 2032. The deal clears a legal snag created by Amazon's up‑to‑$50 billion investment, which had granted AWS exclusive rights to certain OpenAI technologies. Azure remains OpenAI's primary cloud, but the maker can now run its products on any provider. The revised terms also reshape revenue‑share flows and preserve Microsoft’s sizable equity stake, while giving enterprises more cloud‑choice flexibility. Read more →

The S&P 500’s Shiller CAPE ratio now sits at 38‑40, the highest level in 155 years aside from the March 2000 dot‑com peak. While market concentration and lofty valuations echo 2000, leading AI firms such as Nvidia, Microsoft, and Alphabet generate cash at historic rates. Analysts debate whether the AI rally will end in a bust or prove sustainable, hinging on whether the $660‑$690 billion annual hyperscaler capex delivers returns. The outcome will decide if today’s prices look like a bubble or a justified premium for a profitable new wave of technology. Read more →

Google is investing between $10 billion and $40 billion in Anthropic, a rapidly growing AI startup, valuing the company at $350 billion. This move follows Amazon's recent $5 billion investment in Anthropic, which also includes potential for further investment based on performance. Read more →

Meta has agreed to power its expanding artificial‑intelligence services with millions of Amazon Web Services (AWS) Graviton processors, the company announced Friday. The ARM‑based CPUs, designed for AI inference tasks, will replace the cloud provider’s previous reliance on competitors such as Google Cloud. The move underscores a broader industry shift toward specialized CPUs for real‑time reasoning, code generation and other agentic workloads, and highlights AWS’s growing portfolio of custom chips, including its Trainium GPU for training and inference. Read more →

Alphabet's Google will invest $10 billion in AI startup Anthropic now, with an option to add $30 billion if the firm hits performance targets. The agreement also secures five gigawatts of Google‑provided TPU capacity by 2027 and mirrors a similar multi‑billion‑dollar pact the startup struck with Amazon earlier this year. Anthropic, fresh from a $30 billion funding round, will rely on Google’s silicon and cloud infrastructure as part of the deal, underscoring the growing trend of circular investments in the artificial‑intelligence sector. Read more →

Alphabet’s Google Cloud announced a multi‑phase deal that could total $40 billion for AI lab Anthropic. The first tranche of $10 billion values the startup at $350 billion, with an additional $30 billion tied to performance milestones. The partnership expands Anthropic’s access to Google’s tensor processing units and adds roughly 5 gigawatts of compute capacity over five years. The move follows Anthropic’s rollout of its latest model, Mythos, and comes as the firm also secures funding from Amazon and eyes a possible IPO later this year. Read more →