Anthropic’s $2 Trillion Bet Is That Nothing Goes Wrong

The most revealing aspect of a $2 trillion Anthropic IPO is not the staggering valuation, but the suspension of disbelief required to justify it.

To buy into that number, investors must assume that artificial intelligence is becoming economically indispensable at breakneck speed, that a formidable moat will protect a handful of frontier-model developers, and that the exorbitant costs of computing infrastructure will not eventually crush their margins. More crucially – they must wager that the political, technical, and institutional risks inherent to an increasingly geopolitically competitive landscape will play second fiddle to the growth story. 

Reports of Anthropic’s internal projections describe a company scaling at an unprecedented clip. If it can actually bust out an annualized revenue run-rate of $100 billion while expanding its enterprise market share, a trillion-dollar valuation begins to look mathematically defensible under current tech multiples. But this arithmetic obscures a deeper structural flaw: the very capabilities driving Anthropic’s revenue growth are simultaneously engineering the risks most likely to vaporize its premium.

As frontier models become more autonomous, persuasive, and capable of executing multi-step objectives across outside systems, they cease to be conventional software. A text generator hallucinating an answer is a glitch; an autonomous agent hallucinating a cyber-attack or a rogue financial transaction is a massive liability.

The recent internal turmoil and safety-evaluation controversies at both OpenAI and Anthropic are symptomatic of this shift. Major AI labs are now diverting substantial resources to test for autonomy, deception, and loss of control. This is not merely an engineering challenge; it is a fundamental transformation of the product category. The instability roiling these companies is not a byproduct of poor management – it is a structural consequence of trying to shoehorn a potentially world-altering, highly volatile technology into the framework of a standard venture-backed corporation.

The company’s value has been all over the place in prediction markets – recently hockey-sticking following a report in FT in which six company backers said that Anthropic’s rapidly rising revenue “would enable it to more than double its current valuation in a planned autumn float.” 

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China Sends Science Team to Iran for ‘Exploration and Processing’ of Rare Earths

The National Natural Science Foundation of China (NSFC) on Monday announced a collaboration with Iran on the “exploration and processing of rare earth elements,” presented as a series of workshops that will be mostly funded by China.

The NSFC said that it will provide about $4,200 in funding for each workshop, while Iran’s National Science Foundation will help with travel arrangements and accommodations for Chinese researchers visiting Iran, and vice versa.

The South China Morning Post (SCMP) noted that Beijing chose a “particularly sensitive time” to announce a new collaboration with Iran, given ongoing hostilities between the United States and Iran.

Chinese dictator Xi Jinping is scheduled to visit the United States in September to discuss trade issues with President Donald Trump, although the meeting could already be imperiled by volleys of “tit-for-tat” sanctions between the U.S. and China. Trump is unlikely to be pleased by the announcement of a new Chinese collaboration with Iran at this uneasy juncture.

The SCMP pointed out that China seems to be taking a significant diplomatic risk for a very modest collaboration in an industry that China already dominates. China has the world’s largest known rare earth reserves and is the leading producer and refiner of the metals.

Iran might have significant rare earth deposits in its central region, but it has not developed the technology to confirm those deposits exist, or exploit them. All that is certain for now is that central Iran boasts the sort of iron and phosphate formations that could harbor rare earth deposits.

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The Right To Be Left Alone

“The makers of our Constitution undertook to secure conditions favorable to the pursuit of happiness… They conferred against the Government the right to be let alone — most comprehensive of rights and the right most valued by civilized men.” ~ Justice Louis D. Brandeis (1856-1941)

The rapid spread of public surveillance cameras represents something far more consequential than a new piece of police technology. It represents a fundamental change in the relationship between the individual and the state.

These cameras allow government agents to record, identify, catalog and retroactively track the movements of people who have committed no crime, are suspected of no wrongdoing and have done nothing to invite government scrutiny. That’s not public safety. It’s an assault upon individual privacy.

Privacy is not a privilege granted by government. It is an aspect of personal liberty that government exists to protect. It is a natural human right protected from the government in the Bill of Rights. The fact that a person leaves his home and travels upon a public road does not mean that he has surrendered that right.

There is an enormous moral and constitutional difference between a police officer who happens to observe a person in public and government surveillance that automatically and systematically records that person’s vehicle, location and movements; and stores that information for future use.

A free society doesn’t just protect people from crime; it protects them from arbitrary government. The presumption is liberty. Government is the negation of liberty. A person should not have to establish his innocence before the government leaves him alone. The burden always belongs to the government to justify all intrusions into personal liberty. Police cameras reverse that principle. They collect information about everyone the camera views and leave it to individuals to challenge the collections afterward.

The Constitution requires articulable suspicion connecting the person being surveilled to a legitimate law-enforcement objective to justify public surveillance. A vague assertion that the technology might someday help solve a crime or enhance public safety does not meet that standard.

The view that personal privacy and public safety are in equipoise — that they are merely two competing interests of equal moral and legal weight from which government officials are entitled to choose subjectively their preferred balance — is the core of authoritarianism.

Safety is one of the legitimate purposes for which government exists. Privacy is among the personal liberties that government exists to protect. It cannot be taken away without judicial approval. Government cannot justify violating a natural right merely by asserting that doing so might make people safer. If that were so, there would be no meaningful boundary on any governmental power.

There is a profound difference between investigating a specific crime through constitutionally authorized surveillance and constructing a permanent infrastructure of suspicionless surveillance. The former begins with evidence and seeks information relevant to a particular governmental purpose. The latter begins with everyone and waits for the evidence.

When 7,000 American police departments have these systems with no legislative approvals, we have the police making policy judgments. They are deciding that the government should possess a new capacity to observe innocent people, what information should be collected, how long it should be retained, who should have access to it and what purposes may justify searches; all this irrespective of the Constitution.

Those are not merely administrative questions. They are questions about personal liberty.

If elected legislators believe that such surveillance is necessary, they should publicly debate it, enact specific legislation mandating warrants, establish meaningful limitations and accept responsibility before the voters. The decision should not be buried in a police procurement process or treated as an ordinary equipment purchase.

Liberty cannot depend upon the benevolence, restraint or good intentions of government employees. The premise of the Constitution is that government power must be limited, checked and divided because government officials are human beings who possess power and will inevitably have incentives to abuse it.

The answer is not better government surveillance. The answer is what the Fourth Amendment requires: No government surveillance without search warrants.

The constitutional question cannot be reduced to whether someone was physically standing in a public place. A police officer seeing a car pass by is one thing. A government database capable of reconstructing months of a person’s movements is something fundamentally different.

The difference is the difference between observation and surveillance.

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British Royal Navy’s Spy Drones Have Cameras Suspected of Sending Back Data to China

Who are these drones spying for, in the end?

The Royal Navy is fighting a war with Britain, to have resources to modernize and expand the much-diminished forced, said to be the smallest-ever.

But even when modernization efforts do come, they are not without issues, as we’ve learned this week.

It’s been widely reported that the Royal Navy spy drones used by Britain’s elite special forces had cameras suspected to be secretly sending sent data to China, The Telegraph can reveal.

The Telegraph reported:

“The cameras on the K3 Scout surveillance drones had components made in China which were transmitting information to a device in the country.

The Royal Marines have been using the £12m fleet since March and the Ministry of Defence (MoD) was forced to remove all internet connectivity from the cameras after discovering the breach.

The revelation raises fears that Beijing has been attempting to spy on Britain’s military after years of security warnings about the threat from the country.”

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ICE to Equip Agents With Electric-Shock Gloves to Safely Subdue Violent Suspects

Immigration and Customs Enforcement (ICE) is preparing to equip its officers with specialized gloves capable of delivering an electric shock to help subdue violent or resisting suspects.

According to a Department of Homeland Security notice reported by the Associated Press, ICE plans to spend up to $20 million purchasing thousands of the devices for deployment early next year.

Known as the G.L.O.V.E. (Generated Low Output Voltage Emitter) the technology is manufactured by Kentucky-based Compliant Technologies and has already been used by some police departments and correctional facilities.

The equipment functions as an ordinary pair of patrol gloves until an officer activates its electrical capability.

The glove must make direct contact with a person’s skin to deliver a brief but painful electrical stimulus designed to gain compliance.

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Meta Faces Criminal Complaint in Germany for Its AI-Glasses, Accused of Violating Privacy Laws

Who wants to be filmed all the time?

The struggle between new, useful tech gadgets and the objections that these new capabilities raise is a field expected to grow in the next few years, and make many lawyers very wealthy.

One such example is the Meta AI-Glasses.

In principle, it seems a great idea to pack so much computing power in a pair of glasses for our benefit.

But once you start to compute the legal and ethical objections that this gadget raises, it becomes a much less clear question.

Today (12), a German advocacy group took matters into their own hands, and filed a criminal complaint against Meta and other companies, ‘arguing the devices violate privacy laws’.

Reuters reported:

“Digital rights group HateAid said in a statement on Wednesday that the launch of the devices, the Ray-Ban Meta Wayfarer in particular, broke German digital privacy laws, in the latest sign of legal scrutiny in a nation where the right to privacy is highly valued.

‘There’s no place to escape from smart glasses. You have to expect at any moment to be filmed and then exposed on the internet’, said HateAid managing director Josephine Ballon.

The organization reported the management of Meta, units of spectacles maker EssilorLuxottica including Ray-Ban, as well as retailers Fielmann, Apollo-Optik, Mister Spex and MediaMarkt to the Frankfurt-based digital crime prosecution unit ZIT.”

The complaint is based on Germany’s federal digital data protection law, which prohibits the sale of communication devices designed to film people without them noticing.

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He Spoke at a Town Meeting. Then Flock Cameras Started Tracking His Car.

A resident steps up to the mic at a town council meeting, says something inconvenient, then drives home — unaware that somewhere in a police database, that license plate just became a person of interest. No warrant. No probable cause. Just an officer with a grievance and a subscription service the town approved at a meeting most residents never knew about.

That scenario isn’t hypothetical anymore. In 2026, it’s documented — from Georgia to Rhode Island.

How Flock Works – and How It Can Be Weaponized

The system was built to catch criminals; the problem is there’s nothing reliable stopping it from being aimed at everyone else.

Flock Safety sells automated license-plate reader (ALPR) networks to police departments nationwide. The pitch is straightforward: catch criminals faster by searching vehicle movement data after incidents occur. What the system doesn’t include is a reliable filter between a legitimate investigation and a personal score to settle. Unlike federal wiretap law, no federal statute currently governs ALPR data retention periods or inter-agency sharing agreements, leaving oversight entirely to municipal contracts.

The documented abuse cases are piling up:

  • The Electronic Frontier Foundation identified more than 50 agencies running hundreds of Flock searches tied to protest activity
  • CNN report from July 2026, citing an Institute for Justice tally, found at least two dozen cases where officers resigned or were arrested for allegedly using Flock to stalk romantic partners
  • A police chief in Braselton, Georgia, was arrested for allegedly using ALPR cameras to stalk and harass private citizens
  • Court documents show searches conducted far outside officers’ jurisdictions, according to a 2026 investigation republished by Yahoo
  • Flock told 404 Media it was “aware of 15 incidents of abuse” — a figure critics argue the platform’s design makes structurally impossible to trust

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New Orleans Becomes First Major U.S. City To Let AI Answer 911

New Orleans is testing just how much Americans are willing to trust artificial intelligence when the stakes are considerably higher than writing an email or ordering dinner, according to the New York Post.

The city has begun allowing an AI system to field certain 911 calls, apparently making it the first major U.S. municipality to put a bot directly between emergency callers and human operators.

The idea is largely about volume. New Orleans’ emergency communications center receives more than 1,000 calls on a typical day, and officials believe automation can clear some of the clutter while dispatchers concentrate on genuine emergencies.

The technology isn’t supposed to take over the entire 911 operation. Instead, it can deal with situations that appear redundant or relatively routine when human operators are tied up. A flood of calls about the same already-reported car accident, for example, could potentially be filtered through the automated system rather than occupying multiple dispatchers.

The Post writes that city officials insist humans remain at the center of the operation. But skeptics say emergency calls are precisely the kind of messy, unpredictable interactions computers may struggle to interpret.

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Zuckerberg manifesto sketches out Meta’s ambitions for world-changing AI technology

Meta Platforms CEO Mark Zuckerberg laid out a vision Monday of what he said artificial intelligence can do for the world, imagining a future where everyone has their own, all-knowing AI agent that strives to improve all aspects of their lives.

Zuckerberg detailed his ambitions for the technology in a 6,500-word essay published online where he also outlined why he favors open-source AI technology, in which developers make key components accessible for anyone to examine, modify and build upon.

In a document derided by critics as fantastical, Zuckerberg said his company is working toward an era where everyone will have the tools to create new businesses, receive Ph.D.-level tutoring and provide personalized lifestyle tips. His 8-year-old daughter, he wrote, can already code her ideas and quickly produce videos.

“Everyone will soon have invention superpowers,” Zuckerberg wrote.

Zuckerberg warned of risks if control of advanced AI is concentrated with a select few companies, institutions or governments. On Monday, Meta also announced the release a new open-source AI model, Muse Glimmer, which can run on a personal computer, and Zuckerberg said the company would also would provide a way for developers to access a more powerful AI model, Muse Spark 1.2.

Meta makes AI models, like several other tech companies, and uses them to power platforms such as Instagram and Facebook. The Menlo Park, California, company also makes them available to developers who can create their own apps and features.

Skeptics urge a slower pace of AI development
Critics said Zuckerberg was not reckoning fully with the risks inherent in AI’s rapid development.

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Mysterious Drone Threat Emerges At America’s “Unsinkable Aircraft Carrier,” Prompting Curfews

One of the most strategically important US military bases outside the continental U.S., often described as an “unsinkable aircraft carrier” in the central Indian Ocean, faces a mysterious drone threat, according to a new report.

TWZ cited the UK Ministry of Defense, which said it was aware of reported drone sightings over the remote US-UK military base but declined to identify the drones.

We are aware of reported sightings of drones (UAS) over Diego Garcia,” the UK Defense Ministry (MoD) told the military blog Monday morning. “We are unable to provide any details about a situation which may affect the security or operation of the joint U.K.-U.S. base on Diego Garcia.”

The U.S. and U.K. Commanding Officers on Diego Garcia consider and implement appropriate measures to ensure the security and safety of the base and the safety of the personnel on the island,” MoD added.

TWZ noted that US officials “were less forthcoming” about the drone threat against Diego Garcia.

“As a matter of operational security, we do not discuss specific force protection measures or security procedures at U.S. military installations,” an official from U.S. Pacific Command (PACOM) told the outlet on Friday. “We remain vigilant in protecting U.S. personnel and facilities.”

Last Friday, the Air Force amn/nco/snco Facebook page said drones were spotted near the base’s fuel tank farm, and a daytime curfew had been imposed. “

Inbox: Diego Garcia. Drones spotted near fuel farm. Base on 0700 to 1900 curfew until further notice. Note: message us if you have further information, thanks,” the Facebook post read.

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