Elon Musk's artificial intelligence company xAI has signed an agreement to allow the military to use its model, Grok, in classified systems, a Defense official confirmed to Axios.
Why it matters: Up to now, Anthropic's Claude has been the only model available in the systems on which the military's most sensitive intelligence work, weapons development and battlefield operations take place. But the Pentagon is threatening Anthropic in a dispute over safeguards and may soon need a replacement.
New research shows that95% of AI pilots fail to show measurable ROI beyond experimentation(MIT).
It's not because the technology doesn't work. It's because most organizations haven't built the capability infrastructure required to operationalize it.
Cybersecurity companies aren't likely to face the same dramatic, AI-induced apocalypse that's hit the software industry over the last month, analysts say.
Why it matters: Investors are panicking and security executives are now on the defensive. But insiders don't see this as a total identity crisis for the industry.
DAVOS, Switzerland — C-suite leaders of multiple American businesses said long-term resilience will require balancing strategic generative AI usage with the needs of American workers.
Why it matters: The geopolitical order is changing, and strategies around supporting employees, improving stateside workflows, and bolstering community relationships can determine whether organizations remain competitive.
Axios' Kate Marino moderated the Jan. 20 Expert Voices roundtable, which was sponsored by Philip Morris International U.S. under Chatham House rules.
Inside the room: Here are five takeaways from the conversation…
1. Relying exclusively on AI has risks. It remains crucial to invest in physical infrastructure, put energy toward the human workforce, and give back to the community.
2. People come first. Offering union roles with health care, benefits, and fair wages while offering growth and mobility opportunities within an organization is a clear motivator and helps build a mutually beneficial future.
3. Consider the world of tomorrow. To compete, the U.S. needs to improve systems from within — infrastructure, the supply chain, and, yes, technology.
4. Acknowledge the tension. There is a strain between wealth creation and broad prosperity, especially as the cost of living rises and wages remain stagnant.
5. Remember American values: Don't steal, don't cheat, and don't lie. Treat those around you with dignity. Think about the company's commitment to those it serves.
A message from the sponsor:
Philip Morris International's U.S. businesses (PMI U.S.) are committed to being invested in America — in its manufacturing, innovation, and communities.
The business noted it is driving public health advances with smoke-free alternatives as well as prioritizing manufacturing, job creation and community impact, having invested, since 2022, more than $1 billion in U.S. manufacturing, operational capabilities and people costs (through September 30, 2025).
U.S. battery storage installations rose 29% last year, driven by strong utility-scale growth in Arizona and Texas, per new data from the Solar Energy Industries Association and Benchmark Mineral Intelligence.
Why it matters: Storage is a flexible resource that helps meet demand peaks and enables higher levels of renewables on grids.
A manic new phase of the AI boom is sweeping through Silicon Valley, powered by autonomous "agents" capable of liquefying weeks of manual labor into minutes.
Why it matters: For now, the frenzy is largely confined to software engineering. But inside that bubble, the shift feels seismic — deepening the gulf between AI builders and bystanders.
Defense Secretary Pete Hegseth has summoned Anthropic CEO Dario Amodei to the Pentagon on Tuesday morning for what sources say is likely to be a tense meeting over terms for military use of Anthropic's Claude.
"Anthropic knows this is not a get-to-know-you meeting," a senior Defense official told Axios. "This is not a friendly meeting. This is a sh*t-or-get-off-the-pot meeting."
Why it matters: Claude is the only AI model available in the military's classified systems, and the most capable model for sensitive defense and intelligence work. The Pentagon doesn't want to lose access to Claude but is furious with Anthropic for refusing to lift its safeguards entirely.
