President Donald Trump has ordered all U.S. federal agencies to "immediately cease" using Anthropic's AI technology, escalating a standoff after the company sought limits on Pentagon use of its models. CNBC reports: The company, which in July signed a $200 million contract with Pentagon, wants assurances that the Defense Department will not use its AI models will not be used for fully autonomous weapons or mass domestic surveillance of Americans. The Pentagon had set a deadline of 5:01 p.m. ET Friday for Anthropic to agree to its demands to allow the Pentagon to use the technology for all lawful purposes. If Anthropic did not meet that deadline, Pete Hegseth threatened to label the company a "supply chain risk" or force it to comply by invoking the Defense Production Act. "The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution," Trump said in a post on Truth Social. "Their selfishness is putting AMERICAN LIVES at risk, our Troops in danger, and our National Security in JEOPARDY." "Therefore, I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology," Trump wrote. "We don't need it, we don't want it, and will not do business with them again! There will be a Six Month phase out period for Agencies like the Department of War who are using Anthropic's products, at various levels," Trump said. On Friday, OpenAI said it would also draw the same red lines as Anthropic: no AI for mass surveillance or autonomous lethal weapons.

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The $200 billion video game industry is caught between studios eager to cut ballooning development costs through AI and a player base that has grown openly hostile to the technology after a string of visible blunders. As Bloomberg News reports, Arc Raiders, a surprise hit from Stockholm-based Embark Studios that sold 12 million copies in three months, was briefly vilified online for its robotic-sounding auto-generated voices -- even as CEO Patrick Soderlund insists AI was only used for non-essential elements. EA's Battlefield 6 and Activision's Call of Duty: Black Ops 7 both drew gamer anger this winter over thematically mismatched or poorly generated graphics, and Valve's Steam has added labels to flag games made using AI. Some 47% of developers polled by research house Omdia said they expect generative AI to reduce game quality, and PC gamers -- now facing inflated hardware prices from AI-driven demand for graphics chips -- have turned reflexively antagonistic.

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An anonymous reader shares a report: While some see AI as a tool to be used, its specific use and how it is deployed responsibly is being heavily debated online across a wide range of industries. In terms of journalistic content, and in this particular instance, reviews, review aggregator Metacritic has taken a firm stance on content published and submitted to their platform, that have been generated by artificial intelligence in some way. In a statement by co-founder Marc Doyle, sent to Gamereactor, he says this: "Metacritic has been a reputable review source for a quarter century and has maintained a rigorous vetting process when adding new publications to our slate of critics. However, in certain instances such as a publication being sold or a writing staff having turned over, problems can arise such as plagiarism, theft, or other forms of fraud including AI-generated reviews. Metacritic's policy is to never include an AI-generated critic review on Metacritic and if we discover that one has been posted, we'll remove it immediately and sever ties with that publication indefinitely pending a thorough investigation." So, what is this about specifically? Well, it's probably a sound guess, that this pertains to Videogamer's review of Resident Evil 9: Requiem, which was removed from the platform after a barrage of comments accusing the review of being AI-written, and for the author of being made up.

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An anonymous reader shares a report: OpenAI CEO Sam Altman wrote in a memo to staff that he will draw the same red lines that sparked a high-stakes fight between rival Anthropic and the Pentagon: no AI for mass surveillance or autonomous lethal weapons. If other leading firms like Google follow suit, this could massively complicate the Pentagon's efforts to replace Anthropic's Claude, which was the first model integrated into the military's most sensitive work. It would also be the first time the nation's top AI leaders have taken a collective stand about how the U.S. government can and can't use their technology. Altman made clear he still wants to strike a deal with the Pentagon that would allow ChatGPT to be used for sensitive military contexts. Despite the show of solidarity, such a deal could see OpenAI replace Anthropic if the Pentagon follows through with its plan to declare the latter a "supply chain risk."

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OpenAI has closed what is now the largest private financing in history -- a $110 billion round at a $730 billion pre-money valuation that more than doubles the $40 billion raise it completed just a year ago, itself a record for a private tech company at the time. Amazon invested $50 billion, SoftBank put in $30 billion, and Nvidia committed $30 billion, and additional investors are expected to join as the round progresses. The valuation is a sharp jump from the $500 billion OpenAI commanded in a secondary financing in October, and the round dwarfs recent raises by rivals Anthropic ($30 billion) and xAI ($20 billion). The company has been telling investors it is now targeting roughly $600 billion in total compute spend by 2030, a more measured figure than the $1.4 trillion in infrastructure commitments CEO Sam Altman had touted months earlier. OpenAI is projecting more than $280 billion in total revenue by 2030, split roughly equally between consumer and enterprise. ChatGPT now has over 900 million weekly active users and more than 50 million paying subscribers.

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An anonymous reader quotes a report from The Register: Ballooning memory prices are forecast to kill off entry-level PCs, leading to a decline in global shipments this year -- and a similar effect is going to hit smartphones. Analyst biz Gartner is projecting a drop in PC shipments of more than 10 percent during 2026, and a decline of around 8 percent for smartphones, all due to the AI-driven memory shortage. Some types of memory have doubled or quadrupled in price since last year, and Gartner believes DRAM and NAND flash used in PCs and phones is set for a further 130 percent rise by the end of 2026. The upshot of this is that the budget PC will disappear, simply because vendors won't be able to build them at a price that will satisfy cost-conscious buyers, according to Gartner research director Ranjit Atwal. "Because the price of memory is increasing so much, vendors lose the ability to provide entry-level PCs -- those below about $500," he told The Register. PC makers could just raise the price of their cheap and cheerful boxes to above that level to compensate for the memory hike, however, price-sensitive buyers simply won't bite, he added. Another factor expected to add to declining fortunes of the PC industry this year is AI devices -- systems equipped with special hardware for accelerating AI tasks, typically via a neural processing unit (NPU) embedded in the CPU. These systems were predicted to take the market by storm, but they require more memory to support AI processing and vendors like to mark them up to a premium price. "Historically, downgrading specifications was the way to go when prices were being squeezed, but that's difficult here," Atwal said. "The thinking was that the average price [of AI PCs] would fall this year, and lead to more adoption," said Atwal, "but that's not happening." The lack of killer applications isn't helping either.

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