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Anthropic vs. the Pentagon: What’s actually at stake?

The past two weeks have been defined by a clash between Anthropic CEO Dario Amodei and Defense Secretary Pete Hegseth as the two battle over the military’s use of AI. 

Anthropic refuses to allow its AI models to be used for mass surveillance of Americans or for fully autonomous weapons that conduct strikes without human input. At the same time, Secretary Hegseth has argued the Department of Defense shouldn’t be limited by the rules of a vendor, arguing any “lawful use” of the technology should be permitted.

On Thursday, Amodei publicly signaled that Anthropic isn’t backing down — despite threats that his company could be designated as a supply chain risk as a result. But with the news cycle moving fast, it’s worth revisiting exactly what’s at stake in the fight.

At its core, this fight is about who controls powerful AI systems — the companies that build them, or the government that wants to deploy them.

What is Anthropic worried about?

As we said above, Anthropic doesn’t want its AI models to be used for mass surveillance of Americans or for autonomous weapons with no humans in the loop for targeting and firing decisions. Traditional defense contractors typically have little say in how their products will be used, but Anthropic has argued from its inception that AI technology poses unique risks and therefore requires unique safeguards. From the company’s perspective, the question is how to maintain those safeguards when the technology is being used by the military.

The U.S. military already relies on highly automated systems, some of which are lethal. The decision to use lethal force has historically been left to humans, but there are few legal restrictions on military use of autonomous weapons. The DoD doesn’t categorically ban fully autonomous weapons systems. According to a 2023 DOD directive, AI systems can select and engage targets without human intervention, as long as they meet certain standards and pass review by senior defense officials.

That’s precisely what makes Anthropic nervous. Military technology is secretive by nature, so if the U.S. military were taking steps to automate lethal decision-making, we might not know about it until it was operational. And if it used Anthropic’s models, it could count as “lawful use.”

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Anthropic’s position isn’t that such uses should be permanently off the table. It’s that its models aren’t capable enough to support them safely yet. Imagine an autonomous system misidentifying a target, escalating a conflict without human authorization, or making a split-second lethal decision that no one can reverse. Put a less-capable AI in charge of weapons, and you get a very fast, very confident machine that’s bad at making high-stakes calls.

AI also has the power to supercharge lawful surveillance of American citizens to a concerning degree. Under current U.S. laws, surveillance of American citizens is already possible, whether through collection of texts, emails, and other communication. AI changes the equation by enabling automated large-scale pattern detection, entity resolution across datasets, predictive risk scoring, and continuous behavioral analysis.

What does the Pentagon want?

The Pentagon’s argument is that it should be able to deploy Anthropic’s technology for any lawful use it deems necessary, rather than be limited by Anthropic’s internal policies on things like autonomous weapons or surveillance. 

More specifically, Secretary Hegseth has argued the Department of Defense shouldn’t be limited by the rules of a vendor and that it would engage in “lawful use” of the technology.

Sean Parnell, the Pentagon’s chief spokesperson, said in a Thursday X post that the department has no interest in conducting mass domestic surveillance or deploying autonomous weapons. 

“Here’s what we’re asking: Allow the Pentagon to use Anthropic’s model for all lawful purposes,” Parnell said. “This is a simple, common-sense request that will prevent Anthropic from jeopardizing critical military operations and potentially putting our warfighters at risk. We will not let ANY company dictate the terms regarding how we make operational decisions.”

He added that Anthropic has until 5:01 p.m. ET on Friday to decide. “Otherwise, we will terminate our partnership with Anthropic and deem them a supply chain risk for DOW,” he said.

Despite the DoD’s stance that it simply doesn’t believe it should be limited by a corporation’s usage policies, Secretary Hegseth’s concerns about Anthropic have at times seemed connected to cultural grievance. In a speech at SpaceX and xAI offices in January, Hegseth railed against “woke AI” in a speech that some saw as a preview of his feud with Anthropic.

“Department of War AI will not be woke,” Hegseth said. “We’re building war-ready weapons and systems, not chatbots for an Ivy League faculty lounge.”

So what now?

The Pentagon has threatened to either declare Anthropic a “supply chain risk” — which effectively blacklists Anthropic from doing business with the government — or invoke the Defense Production Act (DPA) to force the company to tailor its model to the military’s needs. Hegseth has given Anthropic until 5:01 p.m. on Friday to respond. But with the deadline approaching, it’s anyone’s guess whether the Pentagon will make good on its threat.

This is not a fight either party can easily walk away from. Sachin Seth, a VC at Trousdale Ventures who focuses on defense tech, says a supply chain risk label for Anthropic could mean “lights out” for the company. 

However, he said, if Anthropic is dropped from the DoD, it could be a national security issue.

“[The Department] would have to wait six to 12 months for either OpenAI or xAI to catch up,” Seth told TechCrunch. “That leaves a window of up to a year where they might be working from not the best model, but the second or third best.”

xAI is gearing up to become classified-ready and replace Anthropic, and it’s fair to say given owner Elon Musk’s rhetoric on the matter that the company would have no problem giving the DoD total control over its technology. Recent reports indicate that OpenAI may stick to the same red lines as Anthropic.

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Ultrahuman bets on redesigned smart ring to win back US market after Oura dispute

Ultrahuman on Friday unveiled a new smart ring with longer battery life and a redesigned form factor, as the Bengaluru-based wearable maker seeks to revive its U.S. business that was disrupted last year by a patent dispute with rival Oura.

The Ring Pro, Ultrahuman’s third-generation smart ring, offers up to 15 days of battery life — compared with four to six days on the Ring Air — and is priced at $479. It will be available for preorders globally, excluding the U.S., with shipments beginning in March.

Ultrahuman’s U.S. business was disrupted in October 2025 after the U.S. International Trade Commission — a federal agency that handles trade disputes — ruled in Oura’s favor in a patent dispute. The ruling prevented the startup from importing new ring inventory into the country, although existing retail stock continued to be sold. The blow was significant. The U.S. accounted for about 45% of Ultrahuman’s roughly 700,000 daily active users worldwide, according to co-founder and CEO Mohit Kumar.

In August 2025, Ultrahuman also filed a separate patent infringement case against Oura in the Delhi High Court, where the matter remains pending.

Meanwhile, to work around Oura’s patent, Ultrahuman developed the Ring Pro with a new design, Kumar told TechCrunch, adding that the device has been submitted to the U.S. Customs and Border Protection for clearance to confirm it can legally be imported into the country.

Despite the U.S. disruption, Ultrahuman is currently operating at an annualized revenue run rate of about $150 million, Kumar said. It reported $64 million in operating revenue in the financial year ended March 2025. The startup remains profitable after tax, although margins are expected to narrow due to litigation costs, tariffs, and the redesign effort, he added.

Alongside the new ring, Ultrahuman introduced Jade, a real-time “biointelligence” system that analyzes user health data across its devices and services to generate personalized insights and recommendations.

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Kumar said Jade is designed to move beyond retrospective health summaries toward real-time, actionable guidance.

Ultrahuman’s Jade AI systemImage Credits:Ultrahuman

“Most AI tools today look backward at your data,” he said. “Jade is built to react to your health in real time and surface actions users can take.”

Kumar said Jade will be available to all Ultrahuman users, including those using the older Ring Air, and does not currently require a subscription.

The Ring Pro features a redesigned heart-rate sensing architecture for improved signal quality during sleep and a new dual-core processor to enhance data accuracy and on-device computing. The device can store up to 250 days of health data and weighs about 5% to 6% more than the Ring Air, launched in July 2023 at $349.

Ultrahuman has also introduced a Pro Charger with up to 45 days of battery life to support on-the-go charging and enable faster updates and diagnostics through direct case connectivity. The charger also supports wireless charging via Qi, the same standard used by most modern smartphones.

Ultrahuman’s Pro ChargerImage Credits:Ultrahuman

Women account for about 68% of Ultrahuman’s user base, up from roughly 65% a year earlier, Kumar said, reflecting strong adoption of the startup’s women’s health features.

Ultrahuman also offers subscription-based services across its broader health platform, including a coaching and recovery program called PowerPlugs, the Blood Vision metabolic panel, Ultrahuman Home, and a continuous glucose monitoring offering. Subscriptions contribute about 16% of Ultrahuman’s revenue, while Blood Vision accounts for roughly 5% to 6% of the business, Kumar said.

Ultrahuman’s key growth markets include the U.K., Canada, Australia, and India, Kumar told TechCrunch, with the latter contributing about 8% to 9% of overall revenue after recent investments in local customer support.

Global smart ring shipments grew nearly 80% year-over-year in 2025, driven by demand for compact wearables with advanced sleep tracking and longer battery life, said Anshika Jain, senior analyst at Counterpoint Research. Oura continues to lead with more than two-thirds of the market, while Ultrahuman holds the second position.

Jain added that future leaders in the category will be defined by sensor accuracy, AI-driven insights, and seamless ecosystem integration.

Separate IDC data showed global smart ring shipments rising about 30% year over year in Q3 2025 to nearly 1 million units, driven in part by demand for screenless fitness trackers, said Navkendar Singh, associate vice president at IDC India. Ultrahuman captured roughly 25% of the market during the period, per IDC.

Founded in 2019, Ultrahuman has raised about $55 million to date and counts Alpha Wave Incubation, Blume Ventures, Steadview Capital, and Nexus Venture Partners among its investors.

Ultrahuman, Kumar said, is building additional production capacity to support demand for the Ring Pro over the coming months.

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Pokémon Winds and Pokémon Waves are coming to the Nintendo Switch 2 in 2027

A new set of main series Pokémon games is coming to the Nintendo Switch 2 in 2027, marking the 10th installment in the series.

In a livestream celebrating the release of the first Pokémon games exactly 30 years ago, the company unveiled Pokémon Winds and Pokémon Waves, open-world games set across a vast ocean of islands.

The three new starter Pokémon were announced as well: Browt, a Grass type “bean chick” that looks like an Angry Bird; Pombon, a Pomeranian-inspired Fire type who better not evolve into a bipedal man; and Gecqua, a Water type gecko with big pink eyes.

Image Credits:The Pokémon Company

Leakers have rumored that the new games are set in a region inspired by Indonesia and Southeast Asia — while the trailer doesn’t explicitly confirm this, it makes a good case for proving the rumors correct, showing us lush jungles, seaside mountains, tropical towns, and even underwater reefs. Fans have also honed in on a suspicious-looking cloud in the trailer, which looks like a Gyarados-slash-Lapras flying through the sky — perhaps it’s a nod to a new legendary Pokémon?

Pokémon already explored a tropical island vibe in the Hawaii-inspired “Sun and Moon” games, which came out nearly 10 years ago, but there’s still a ton to explore in that sort of setting, especially now that the franchise is embracing open-world maps. Not all tropical archipelagos are alike!

Main series Pokémon games usually get released in November, which would mean that we have almost two years to wait before we can explore this new region … but hopefully we’ll be surprised. It already seems like forever ago since Pokémon Scarlet and Violet came out in 2022. But when that game came out, fans criticized it for feeling rushed and being rife with glitches. So if a later release date means we’ll get something incredible, I’m happy to wait.

In the meantime, Pokémon fans can buy reissues of the Pokémon FireRed and LeafGreen games today for the Switch … but they cost $20. It’s too bad that there isn’t an extremely easy and legally dubious way to get those games on your phone for free.

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Perplexity’s new Computer is another bet that users need many AI models

Starting this week, Perplexity subscribers will have a new agentic tool at their disposal.

Perplexity Computer, in the company’s words, “unifies every current AI capability into a single system.” More specifically, Perplexity says it is a computer user agent that can execute complex workflows independently using 19 different AI models, even creating subagents to handle specific problems.

The tool is available now, only on the company’s highest subscription tier, the $200/month Perplexity Max. It runs entirely in the cloud, which might spare it some of the security concerns of other agentic tools like OpenClaw.

TechCrunch hasn’t done a hands-on demo of the new tool, but in example workflows on Perplexity’s website, it is shown handling tasks that involve collecting statistics, financial, or legal data; creating analysis; and sharing its findings as finished websites or visualizations. 

Perplexity invited the press to a background briefing with executives last week to discuss the product and lay out the agenda for the year. The event was intended to include a demonstration of the tool, but the company canceled the demo because of flaws found in the product hours before the event.

This tool represents the evolution of Perplexity, which made a splash early in the AI boom by wrapping frontier models in familiar user interfaces, particularly its search-engine-like answer service. It then moved on to launch its Comet web browser last summer. Competitors like Google have now changed their products to be more like those built at Perplexity, one executive said, but that’s a threat as much as a compliment.

The company is changing in response to a shifting ecosystem: One of the first AI companies to offer advertising, it abandoned that business late last year, saying last week that it undermined users’ trust in their answers’ accuracy. But Perplexity’s total user base — in the tens of millions of users — pales in comparison to that of OpenAI, which claims 800 million weekly users and began testing ads in ChatGPT this year.

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Now, Perplexity executives say they are aiming for a more boutique set of users, with products that serve people making “GDP-moving decisions.” Executives in the briefing, who asked not to be identified by name, described prioritizing enterprise subscriptions, particularly for deep research.

“You don’t hear us talk about MAUs ever, because we’re not actually on a mission to get as many users as possible,” one executive said.

Perplexity recently released a new benchmark for complex research tasks, called Draco, where (no surprise) its own deep research offering beats out competitors like Gemini. 

Perplexity says it is no longer reliant on other companies’ APIs for its web index and now has its own AI-optimized search API. But the company is doubling down on packaging frontier models in a consumer-friendly user experience, arguing that there is value in orchestrating multiple third-party LLMs to obtain the most cost-effective and accurate answers to queries.

“Multi-model is the future,” one Perplexity exec argued. Models, in their view, are specializing, not commoditizing. The company has found that its users frequently switch between models to obtain the results they are looking for, with December 2025 queries for visual outputs most often sent to Gemini Flash, software engineering done in Claude Sonnet 4.5, and medical research in GPT-5.1.

A visualization of model usage by Perplexity users over time. Image Credits:Perplexity

If one LLM is better at coding tasks and another does a better job drafting marketing copy, Perplexity’s software can automatically choose the ideal one. Another example, executives said, is running Perplexity’s own modified open source Chinese-built LLMs to answer queries more cheaply, a technique the company got dinged for hiding from its customers last year. But done transparently, the technique could prove an efficient way to optimize LLM queries.

The company also offers users the opportunity to query multiple models at once, in a feature called Model Council. But the unit economics of offering multiple queries at flat subscription rates aren’t entirely clear. 

Still, without expensive infrastructure projects on its books and with, the executives claimed, high margins on user fees, Perplexity believes it will remain competitive by allocating tokens to the best model for a purpose.

And there is more on the horizon: Perplexity Comet browser is coming to iOS next month, and the company is planning a developers conference, Ask, on March 11 in San Francisco to promote third-party use of its API.

One executive said that instead of looking at the previous day’s number of queries each morning, he was now looking at the most recent revenue metrics. At least some customers are noticing a new focus on the bottom line, with the Perplexity subreddit featuring frequent complaints of new rate limits on free and subscription product tiers.

However, the execs at the briefing dismiss such complaints: “Any discussions on the free tier being made worse or rate-limited is completely false,” one said.

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