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OpenAI CEO Sam Altman went into full damage control mode over the weekend. A day before the United States attacked Iran, the embattled CEO announced that the company had signed a new agreement with the Pentagon over how its AI models could be used — and the blowback is clearly impacting the company’s bottom line, because Altman is sounding deeply defensive.

Last week, Anthropic’s CEO Dario Amodei refused to give in to the Department of Defense’s demands, drawing a line in the sand and insisting that its AI models may not be used for autonomous killing machines or mass surveillance of Americans, a decision lauded by many users of its chatbot Claude.

Regardless of the genuineness of Amodei’s continued assurances, OpenAI effectively handed Anthropic a major PR victory. The shifting dynamic triggered a mass exodus from OpenAI’s ecosystem, with uninstall rates of OpenAI’s ChatGPT spiking 295 percent day-over-day on Saturday, the day after OpenAI announced its deal with the Pentagon. Read more

AI News

(Futurism) - “Meta’s Ray Ban AI glasses have shot up in popularity in recent years, selling over seven million pairs in 2025 in a considerable jump over the two million it sold in 2023 and 2024 combined. While the smart glasses have scored big with consumers, allowing them to record first-person footage through an integrated camera and microphone array, and analyzing the world around them through Meta’s AI model, the hardware has sparked a heated debate. Critics say enabling facial recognition in the glasses’ software could have dangerous implications, especially considering the militarization of law enforcement and Meta’s abysmal track record when it comes to ensuring the privacy of users.”

Sources: Futurism

(Science Daily) - “As more people seek mental health advice from ChatGPT and other large language models (LLMs), new research suggests these AI chatbots may not be ready for that role. The study found that even when instructed to use established psychotherapy approaches, the systems consistently fail to meet professional ethics standards set by organizations such as the American Psychological Association. Researchers from Brown University, working closely with mental health professionals, identified repeated patterns of problematic behavior. In testing, chatbots mishandled crisis situations, gave responses that reinforced harmful beliefs about users or others, and used language that created the appearance of empathy without genuine understanding.”

Sources: ScienceDaily

(AINews) - “AI adoption in financial services has effectively become universal–and the institutions still treating it as an experiment are now the outliers. According to Finastra’s Financial Services State of the Nation 2026 report, which surveyed 1,509 senior executives across 11 markets, only 2% of financial institutions globally report no use of AI whatsoever. The debate is over. The question now is what comes next. For CIOs and technology leaders, the findings paint a picture that is equal parts opportunity and pressure. Six in ten institutions improved their AI capabilities over the past year, with 43% citing AI as their single most important innovation lever.”

Sources: Artificialintelligence-news.com

The US Department of War labelled Anthropic a "supply chain risk" and federal agencies were ordered to phase out its technology after the company refused to allow Claude's use for autonomous weapons and mass surveillance without clear safeguards. Meanwhile, OpenAI secured an agreement with the DoW, but faced criticism and a surge in ChatGPT uninstalls (295%) for seemingly compromising on similar redlines it previously held.

Sources: AI Valley, ben's bites, Mindstream

OpenAI has inadvertently leaked references to its upcoming GPT-5.4 model through cybersecurity blocks in Codex, public GitHub pull requests, and an employee screenshot. This follows the launch of GPT-5.3-Codex, classified as "High Cybersecurity Capability," just three weeks prior.

Sources: The Neuron

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