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Claude: Banned, But Still Deployed

China Stole From Claude. Caught.

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"It does not matter how slowly you go, as long as you do not stop. Every step forward — no matter how small — is still progress worth celebrating."

— Confucius

🔥 Today's Biggest Story

The Pentagon labeled Anthropic a "supply chain risk" — a designation previously reserved for foreign adversaries like Huawei. It's the first time an American company has ever been publicly blacklisted this way.

  • The deal that collapsed. Anthropic had a $200M Pentagon contract and was the only AI on classified military networks. Negotiations broke down over two hard limits: no fully autonomous weapons, no mass domestic surveillance. The Pentagon wanted "all lawful purposes" with no exceptions.

  • OpenAI stepped in immediately. Hours after Anthropic's blacklisting, OpenAI announced its own Pentagon deal — initially with similar safety guardrails, then quietly removed them after backlash.

  • The irony runs deep. Despite being officially banned, Claude is still being used in active US military operations in Iran, because switching AI systems mid-operation is harder than any rhetoric suggested.

Why it matters: Anthropic has now filed legal intent to challenge the "supply chain risk" designation in court, citing statute 10 USC 3252 — which limits that label only to DoD contracts, not commercial customers. Legal experts say the case has real merit, but warn it could take years. The damage is already landing — every Fortune 500 legal team with Pentagon exposure is reviewing its Claude contracts right now.

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Billionaire investors just set 2 all-time records. An asset class most investors never even considered.

How have 70,679 everyday investors joined in on the billionaire’s asset class?

A Klimt painting sold for $236 million—the most expensive modern artwork ever sold at auction.

A Kahlo broke the auction record for a female artist at $54 million.

Obvious outliers, sure, but the 2025 fall auction season signaled the postwar and contemporary art market could be entering a bull run.

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*According to Masterworks data.  Investing involves risk. Past performance not indicative of future returns. See important disclosures at masterworks.com/cd.

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