The United States Department of Defense has finalized contracts with eight technology companies for classified artificial intelligence projects, notably excluding Anthropic after the AI safety firm insisted on including safety guardrails for the use of AI in warfare applications. The Trump administration reportedly blacklisted Anthropic from consideration after the company refused to deploy its systems without restrictions on military use cases involving lethal autonomous operations.
The eight companies selected for the classified AI program include SpaceX, OpenAI, Google, Microsoft, Nvidia, Amazon Web Services, Oracle, and Reflection. These firms will develop and deploy AI systems across various defense applications, from intelligence analysis to operational planning. The exclusion of Anthropic marks a significant moment in the debate over responsible AI development in military contexts, as the company has consistently maintained that safety measures should accompany any deployment of powerful AI systems.
In a separate major development, GameStop has submitted a formal proposal to acquire eBay at $125 per share, valuing the e-commerce platform at approximately $56 billion. The unexpected bid sent eBay shares surging roughly 10 percent in trading, as investors assessed the viability of what would be one of the largest technology acquisitions in recent years. GameStop, which has transformed its business model under CEO Ryan Cohen, appears to be leveraging its substantial cash reserves for an aggressive expansion into e-commerce.
Meanwhile, Palantir Technologies shares continued their upward trajectory ahead of upcoming quarterly earnings, with analysts expecting strong results driven by growing government and commercial AI contracts. Seagate Technology also saw significant gains after reporting blowout third-quarter results that exceeded Wall Street expectations, driven by surging demand for data storage solutions fueled by AI workloads.
On the negative side, Xanadu Quantum experienced a dramatic 59 percent decline in its stock price, representing one of the steepest single-day drops in the quantum computing sector this year. The selloff reflects growing investor skepticism about the near-term commercial viability of quantum computing technology despite continued research progress.
The Pentagon decision to exclude Anthropic highlights the growing tension between AI safety advocates and national security priorities. While Anthropic has argued that deploying AI without proper safeguards poses unacceptable risks, defense officials have indicated that speed of deployment and capability take precedence in an era of increasing geopolitical competition. The move could set a precedent for how the government evaluates AI vendors, potentially penalizing companies that prioritize safety constraints.
Market analysts noted that the combination of defense AI spending, bold acquisition attempts, and diverging fortunes in emerging technology sectors reflects a market increasingly driven by AI-related catalysts. The GameStop-eBay proposal in particular signals that the boundaries between traditional retail, e-commerce, and technology continue to blur as companies seek growth through transformative deals.
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