Over the last week, things have been quite dramatic with the war in West Asia. And AI has been very much at the centre of things.
According to news reports, the US military launched a massive strike campaign on Iran, hitting around 1,000 targets within the first 24 hours—operations accelerated by the use of advanced AI systems like Palantir’s Maven platform, which integrates Anthropic’s Claude to process satellite, surveillance and intelligence data in real time.
At the same time, the conflict sparked a political storm: Former President Trump banned government use of Anthropic’s AI tools even as military operations were already underway, creating a paradox where the technology was both indispensable on the battlefield and under sudden political restriction.
Clearly, AI isn’t just shaping our feeds or our workplaces. It’s shaping geopolitics, military tempo, and the lived experiences of millions, from conflict zones to cities far away that still feel the aftershocks. The Iran conflict is a stark reminder that AI is no longer confined to tech demos or corporate roadmaps—it is now a geopolitical instrument.
But outside the conflict zones, the AI world has been just as turbulent in its own way, with major announcements, surprise alliances, and fresh concerns about how fast the ecosystem is moving. Here’s a look at the biggest developments:
The Pentagon–AI standoff intensified this week after Anthropic refused US military demands for unrestricted use of its Claude model, insisting on explicit bans on mass domestic surveillance and fully autonomous weapons. Talks collapsed, with Pentagon officials accusing CEO Dario Amodei of being unreasonable.
President Trump then blacklisted Anthropic, ordering all federal agencies to phase out its tools. Departments including State, Treasury and HHS began switching to rivals like OpenAI and Google within hours.
OpenAI quickly filled the vacuum, securing a Pentagon deal to deploy its models on classified systems—a move CEO Sam Altman later admitted looked “opportunistic and sloppy”. In an all hands meeting, Altman told employees they “do not get to make operational decisions” about how the military uses OpenAI’s AI, stressing that the Pentagon retains full control. This triggered internal backlash, with staff angered by the rushed timing amid strikes on Iran.
Meanwhile, Big Tech is beginning to rally behind Anthropic. A major industry group representing Amazon, Nvidia and others criticised the Pentagon’s decision to label Anthropic a supply chain risk, warning it could undermine government access to the best US technology.
Anthropic CEO Dario Amodei has issued a public apology after an internal memo—criticising President Donald Trump amid the Pentagon feud—was leaked to the press. Amodei said the memo reflected an “out of date assessment” and did not represent the company’s current position. The apology came just after the US Department of War formally designated Anthropic a “supply chain risk”, prompting the company to announce it would challenge the move in court.
Amodei emphasised that Anthropic is still in “productive conversations” with officials and that most customers remain unaffected despite the escalating political fallout.
Meta’s AI powered Ray Ban smart glasses are facing scrutiny after an investigation revealed that highly sensitive user footage—including people in bathrooms, bedrooms and even intimate moments—was being viewed by outsourced data annotators. The workers, employed by Nairobi based Sama, told Swedish newspapers that their job was to manually label images and review AI transcripts, but filters meant to blur faces or protect identities often failed, leaving them exposed to everything from living rooms to undressed users. They described strict surveillance in their own workplace but said the content they saw was still “extremely sensitive”.
The revelations have prompted the UK’s Information Commissioner’s Office to step in. The watchdog says the claims are “concerning” and is writing to Meta to demand clarity on how the company is meeting its data protection obligations.
India’s white collar job market is showing a strong V shaped recovery, recording a 12 percent year on year surge in February as per the Naukri JobSpeak Index. Hiring jumped to 3,233 points, marking one of the strongest February performances in recent years. Tech roles led the rebound: India-based multinational IT companies saw a 55 percent spike in hiring, while AI/ML roles jumped 40 percent, signalling a shift toward high skill talent. Freshers also benefited, with hiring up 8 percent, indicating early signs of confidence returning to the IT sector after months of global uncertainty.
Google is pulling its robotics software unit, Intrinsic, into the core company, shifting it out of Alphabet’s ‘Other Bets’ and positioning it as the ‘Android of robotics’—a common software layer that can run across machines from partners like FANUC, Universal Robots and KUKA. The move comes as Google bets big on physical AI, with McKinsey projecting the general purpose robotics market could hit $370 billion by 2040.
Intrinsic is building an OS that lets manufacturers plug in readymade capabilities so they can “focus on solving the problem, not the plumbing”, mirroring Android’s model for developers.
Oracle is preparing to slash thousands of jobs as it faces a mounting cash crunch from its massive AI driven data centre expansion, according to Bloomberg based reporting. The company has become a major cloud contender thanks to multibillion dollar deals with OpenAI, xAI and Meta—but investors are increasingly alarmed by the spiralling costs required to support that demand. Oracle expects fiscal 2026 capital expenditures to rise by $15 billion, far above earlier estimates, fuelling fears around rising debt and negative cash flow. Layoffs across divisions could begin as early as this month, with some roles deemed redundant due to AI automation.
First Published: Mar 06, 2026, 14:46
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