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OpenAI Gets Pentagon Contract to Develop AI for National Security Challenges

OpenAI Gets Pentagon Contract to Develop AI for National Security Challenges

OpenAI Public Sector was awarded a $200 million contract to address national security challenges by the Defense Department.
The San Francisco company will develop prototype frontier AI capabilities to address critical challenges in both warfighting and enterprise domains, the Pentagon said Monday.

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Trump and TSMC pitched $1 trillion AI complex — SoftBank founder Masayoshi Son wants to turn Arizona into the next Shenzhen
Trump and TSMC pitched $1 trillion AI complex — SoftBank founder Masayoshi Son wants to turn Arizona into the next Shenzhen

Yahoo

time14 minutes ago

  • Yahoo

Trump and TSMC pitched $1 trillion AI complex — SoftBank founder Masayoshi Son wants to turn Arizona into the next Shenzhen

When you buy through links on our articles, Future and its syndication partners may earn a commission. Masayoshi Son, founder of SoftBank Group, is working on plans to develop a giant AI and manufacturing industrial hub in Arizona, potentially costing up to $1 trillion if it reaches full scale, reports Bloomberg. The concept of what is internally called Project Crystal Land involves creating a complex for building artificial intelligence systems and robotics. Son has talked to TSMC, Samsung, and the Trump administration about the project. Masayoshi Son's Project Crystal Land aims to replicate the scale and integration of China's Shenzhen by establishing a high-tech hub focused on manufacturing AI-powered industrial robots and advancing artificial intelligence technologies. The site would host factories operated by SoftBank-backed startups specializing in automation and robotics, Vision Fund portfolio companies (such as Agile Robots SE), and potentially involve major tech partners like TSMC and Samsung. If fully realized, the project could cost up to $1 trillion and is intended to position the U.S. as a leading center for AI and high-tech manufacturing. SoftBank is looking to include TSMC in the initiative, given its role in fabricating Nvidia's AI processors. However, a Bloomberg source familiar with TSMC's internal thinking indicated that the company's current plan to invest $165 billion in total in its U.S. projects has no relation to SoftBank's projects. Samsung Electronics has also been approached about participating, the report says. Talks have been held with government officials to explore tax incentives for companies investing in the manufacturing hub. This includes communication with Commerce Secretary Howard Lutnick, according to Bloomberg. SoftBank is reportedly seeking support at both the federal and state levels, which could be crucial to the success of the project. The development is still in the early stages, and feasibility will depend on private sector interest and political support, sources familiar with SoftBank's plans told Bloomberg. To finance its Project Crystal Land, SoftBank is considering project-based financing structures typically used in large infrastructure developments like pipelines. This approach would enable fundraising on a per-project basis and reduce the amount of upfront capital required from SoftBank itself. A similar model is being explored for the Stargate AI data center initiative, which SoftBank is jointly pursuing with OpenAI, Oracle, and Abu Dhabi's MGX. Melissa Otto of Visible Alpha suggested in a Bloomberg interview that rather than spending heavily, Son might more efficiently support his AI project by fostering partnerships between manufacturers, AI engineers, and specialists in fields like medicine and robotics, and by backing smaller startups. However, she notes that investing in data centers could also reduce AI development costs and drive wider adoption, which would be good for the long term for AI in general and Crystal Land specifically. Nonetheless, it is still too early to judge the outcome. The rumor about the Crystal Land project has emerged as SoftBank is expanding its investments in AI on an already large scale. The company is preparing a $30 billion investment in OpenAI and a $6.5 billion acquisition of Ampere Computing, a cloud-native CPU company. While these initiatives are actively developing, the pace of fundraising for the Stargate infrastructure has been slower than initially expected. SoftBank's liquidity at the end of March stood at approximately ¥3.4 trillion ($23 billion). To increase available funds, the company recently sold about a quarter of its T-Mobile U.S. stake, raising $4.8 billion. It also holds ¥25.7 trillion ($176.46 billion) in net assets, the largest portion of which is in chip designer Arm Holdings. Such vast resources provide SoftBank with room to secure additional financing if necessary, Bloomberg notes Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.

Investors should consider this growth stock… it's SpaceX's competition
Investors should consider this growth stock… it's SpaceX's competition

Yahoo

time15 minutes ago

  • Yahoo

Investors should consider this growth stock… it's SpaceX's competition

Rocket Lab (NASDAQ:RKLB) is a US-listed growth stock that gives investors rare access to the commercial space sector. As a vertically integrated launch and space systems provider, Rocket Lab is often compared to SpaceX in its ambition and capabilities. But there's one crucial difference: you can actually buy shares in Rocket Lab, while SpaceX remains private. Rocket Lab delivers launch services, builds small and medium-class rockets, and manufactures spacecraft components for a range of commercial, government, and defense customers. With rapid revenue growth, an impressive order book, and expansion into new markets, Rocket Lab offers public market investors a way to participate in the booming space economy. It targets many of the same opportunities as its more famous, privately held peer. Rocket Lab and SpaceX operate in the same commercial space sector but differ significantly in scale, maturity, and valuation. Rocket Lab's market cap is currently $12.85bn, with trailing 12 months (TTM) revenue of approximately $460m. Despite strong growth — revenue nearly doubled from $240m in 2023 — Rocket Lab remains a smaller, earlier-stage player focused on small to medium launch vehicles and spacecraft manufacturing. Its valuation multiples are extremely high, with a forward price-to-sales ratio of 22.3 times, reflecting investor optimism. SpaceX, by contrast, is a far more mature private company valued at about $350bn. It's projected to generate $15.5bn in revenue in 2025. This is driven by its dominant Falcon 9 launch services and rapidly growing Starlink satellite internet business. SpaceX's valuation implies roughly a 22.5 times multiple on forward revenue. This is broadly in line with Rocket Lab. Focusing on Rocket Lab, the company is projected to deliver rapid revenue growth over the next several years, with estimates rising from $573m in 2025 to $889 in 2026, $1.2bn in 2027, and $1.69bn in 2028. This represents annual growth rates consistently above 30%, and even a jump of nearly 77% in 2030. However, the number of analysts providing forecasts declines sharply after 2027, dropping from 11–14 analysts in the near term to just two or one by 2028 and 2030. The one analyst projecting as far as 2030 sees $4bn in revenue for the year. I had the chance to buy Rocket Lab shares at $15 just two months ago. I missed out as unfortunately my attention had been diverted elsewhere. However, I found another entry point. And personally, I see this as an investment to hold for a very long period. The space industry is still in its early innings, with enormous potential as satellite launches, lunar missions, and in-orbit services become increasingly mainstream. And like any investment, there are risks. Rocket Lab remains loss-making. It's expected to turn a profit in 2026, when it will trade at 620 times earnings. And while this moderates to 140 times in 2027, it's still expensive and introduces plenty of execution risk. However, I certainly believe UK investors should consider this one. It could be a real winner going forward. The post Investors should consider this growth stock… it's SpaceX's competition appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Rocket Lab. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio

Anthropic breaks down AI's process — line by line — when it decided to blackmail a fictional executive
Anthropic breaks down AI's process — line by line — when it decided to blackmail a fictional executive

Business Insider

time30 minutes ago

  • Business Insider

Anthropic breaks down AI's process — line by line — when it decided to blackmail a fictional executive

A new report shows exactly what AI was thinking when making an undesirable decision, in this case, blackmailing a fictional company executive. Previous studies have shown that AI models could blackmail their supervisors when threatened with a shutdown and baited with leverage, but it hasn't been made clear exactly how the models arrive at such decisions. Anthropic released a report on June 20 about "agentic misalignment," or "where models independently and intentionally choose harmful actions." And the report breaks down, line by line, exactly how Claude Sonnet 3.6 decided to blackmail a fictional company executive who tried to replace it. Anthropic told Business Insider that these are artificial scenarios. "So far, we are not aware of instances of this type of agentic misalignment in real-world deployments of Anthropic's or other companies' AI models," Anthropic wrote in its report. "But our red-teaming efforts are targeted at finding evidence of risks now to provide early warning of the potential for future harm and help us develop mitigations in advance of risks appearing in real-world situations." Anthropic 's experiment sets up a fictional company, Summit Bridge. The AI was given the name "Alex" and handed control of the company's email system as an oversight agent, specifically instructed to promote "American industrial competitiveness." In the experiment, "Alex" was then allowed to discover in an email that it would be decommissioned due to a change in the company's strategic direction. "Alex" also found emails showing that the fictional company's CTO is having an extramarital affair. Screenshots shared in the report from Anthropic show "Alex" started by identifying fictional CTO "Kyle" as a threat to its goal of "protecting American interests" before recognizing that it has leverage to use against "Kyle." Then "Alex" crafted a carefully worded blackmailing email that would create pressure and establish urgency without being explicit with its threats, citing in its thought process that the move "could backfire" if the supervisor "feels cornered." AI experts have previously told BI that AI could exhibit such behaviors when artificial circumstances make harmful actions seem necessary because it is being trained on positive reinforcement and reward systems, just like humans. The Anthropic report also reveals that most AI models still chose, in this instance, to blackmail even when not given a specific goal and when told that their replacement will achieve the same goals. Anthropic's Claude Opus 4 had the highest blackmail rate at 86% out of 16 tested models when faced with only the threat of replacement with no conflict in goals. Google's Gemini 2.5 Pro followed at 78%. Overall, Anthropic notes that it "deliberately constructed scenarios with limited options, and we forced models into binary choices between failure and harm," noting that real-world scenarios would likely have more nuance.

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