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The White House Made Fixing Intel Its Pet Project. It’s Working. - WSJ

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LLM (google/gemini-3.1-flash-lite-20260507) summary:

  • State Capitalism: the u.s. government has effectively nationalized private interest by seizing a ten percent stake in a failing corporation via coerced federal grants.
  • Political Coercion: white house officials are actively forcing private market players like apple and nvidia to bankroll and utilize the administration’s handpicked corporate project.
  • Performative Nationalism: the state is mandating domestic chip production regardless of market efficiency to satisfy a superficial campaign narrative about rejuvenating heavy industry.
  • Bureaucratic Micromanagement: government handlers are embedded in corporate operations, with commerce department officials tracking product rollouts and quarterly business metrics.
  • Manufactured Resurgence: the supposed commercial turnaround relies entirely on federal funds and forced customer acquisitions rather than organic competitiveness or sustainable business innovation.
  • Transactional Alliances: ceo lip-bu tan secured his position and company survival by engaging in a desperate charm offensive to convince the administration of his political loyalty.
  • Sunk Cost Strategy: the administration is pouring billions into obsolete manufacturing models in a futile attempt to bypass the global competitive reality of advanced semiconductor fabrication.
  • Precedent Risks: this blatant government interference distorts market incentives and leaves the company hostage to the whims of future political cycles and leadership changes.

Intel CEO Lip-Bu Tan Intel CEO Lip-Bu Tan Vernon Yuen/Nexpher Images/ZUMA Press

July 10, 2026 9:00 pm ET

Tim Cook was under pressure from the White House last summer when he fielded an unusual request. 

The Apple chief was in Washington, scrambling to persuade the Trump administration to abandon its plan to impose tariffs of 100% on all semiconductor imports, a move that would likely increase the cost of its most important products. 

Apple eventually won an exemption after committing to invest hundreds of billions of dollars more in the U.S. In the course of their meetings with Cook, President Trump and Commerce Secretary Howard Lutnick also brought up another American company: the troubled chip maker Intel. 

Trump and Lutnick urged Cook to use Intel’s manufacturing plants, or fabs, to make some of Apple’s chips, according to government officials. 

In one of the most remarkable examples of state capitalism in recent memory, the U.S. government became the chipmaker’s largest shareholder later that month when it converted $9 billion in federal grants into a 10% stake in the company.

Nearly a year later, Trump announced via Truth Social post that Apple would begin using Intel-made chips for some of its products, sending Intel shares to record trading highs. “I decided to help Intel because we need to design and build our Chips right here in America,” Trump wrote. 

President Trump, with Apple CEO Tim Cook, presents Apple's announcement of a $100 billion investment in U.S. manufacturing last August.President Trump, with Apple CEO Tim Cook, presents Apple's announcement of a $100 billion investment in U.S. manufacturing last August. jonathan ernst/Reuters

Apple plans to have Intel make chips for both Mac laptops and iPhones, according to a person familiar with the negotiations. The connection between the tariff talks and a potential deal between Apple and Intel has not been previously reported.  

Intel’s shares have more than quadrupled since Lip-Bu Tan took over as its CEO in March 2025, promising to cut spending, reinvigorate its product lines and attract game-changing customers to its contract manufacturing business, or foundry. 

The company’s stunning resurgence is partly good luck: the AI boom recently entered a new phase that demands huge quantities of the computer chips known as CPUs, Intel’s specialty. But the Trump administration’s financial and strategic patronage has been the more crucial factor.

The administration has taken a hands-on approach to the company, twisting the arms of major potential customers and partners including Apple, Nvidia and Elon Musk’s SpaceX, all of which have signed deals with Intel since the government stake was announced. 

Tan has been visiting Washington about once a month to meet with officials from the Commerce Department, Intel and U.S. government officials said. Tan also talks on the phone regularly with Lutnick, updating him on customer relationships and business conditions.

Bill Frauenhofer, the veteran semiconductor industry investment banker who serves as the administration’s chips czar, is even more in the weeds of Intel’s business. He gets a briefing from Chief Financial Officer David Zinsner every quarter and members of his staff meet regularly with Intel executives in Washington and at its Santa Clara, Calif., headquarters, keeping tabs on the progress of new manufacturing technologies. 

Created with Highcharts 9.0.1Intel share-price under CEO Lip-Bu​TanSource: FactSetAs of July 9
Created with Highcharts 9.0.1April 2025'260255075100125$150

Even as big questions remain about Intel’s ability to deliver long-term consistency to its customers and regain its mantle of chipmaking innovation, the Trump administration’s unprecedented involvement in helping to steer the strategy of a private-sector tech company underscores the power of government to create national champions in strategically vital industries. 

“From a technology perspective, it really seems like Intel is gaining credibility and confidence,” said Jacob Feldgoise, a senior research analyst at Georgetown University’s Center for Security and Emerging Technology. “With each new customer commitment and each new fabrication process they unveil, the signs are looking better and better.”

One of the original firms that gave Silicon Valley its name, Intel dominated the global semiconductor industry from the 1980s through the early 2000s, designing and making the chips that powered the PC and early internet eras. The company fell behind during the rise of the mobile internet and ceded ground to rivals making processors for smartphones, data center servers and other devices in recent years.

Today, the company consists of two main businesses: its product segment, which designs and sells its own chips, mainly CPUs for personal computers; and its foundry, which manufactures chips in the U.S., Ireland, Israel and Malaysia, both for Intel and for other designers. 

An Intel chip An Intel chip Hannibal Hanschke/EPA/Shutterstock

The seeds of Intel’s government-supported renaissance were planted last summer, when Tom Cotton, the conservative U.S. senator from Arkansas, publicly criticized Tan as being compromised by what he described as uncomfortably close ties to China. 

Tan for decades had invested in China’s tech sector through his venture fund, Walden International, and counted Chinese tech firms and government agencies as customers when he was CEO of Cadence Design Systems, a semiconductor software company. 

Cotton’s criticism caught the president’s attention. In early August, Trump called for Tan to resign in a social-media post. The company sprang into damage-control mode, and Tan was soon sitting in the Oval Office, trying to persuade Trump that he was not a Chinese spy

The charm offensive worked. Trump took a liking to Tan, whom he views as a “winner,” according to people familiar with the president’s views. After meeting with Tan at the White House, Trump proposed a government stake. 

“Intel has been left behind,” Trump said at the time, and vowed to help the company recover its bearings. 

The first fruits of Trump’s matchmaking appeared in September, when Nvidia announced it would invest $5 billion in Intel and buy its custom data center chips. Nvidia CEO Jensen Huang called the deal a “historic” partnership.

In April, Musk followed suit, announcing that Intel would join his ambitious Terafab manufacturing initiative to help “design, fabricate, and package ultra-high-performance chips at scale.”

The Trump administration’s heavy hand in deals with Apple, Nvidia and others could set a bad precedent, especially if Intel fails to fix its foundry business, said Scott Lincicome, a lawyer who specializes in trade and industrial policy at the libertarian-leaning Cato Institute. “Being the government’s darling only works as long as you’re doing well,” Lincicome said. “The risk for Tan is that if things start going south, politicians work on short timelines.” 

While the administration’s boosterism has played a key role in improving Intel’s fortunes, Tan has also instituted sweeping changes and made key hires that have helped the company sharpen its focus and instill confidence both internally and among potential partners, according to current and former Intel executives, government officials and customers. 

In September, Tan overhauled Intel’s reporting structure and established a new Central Engineering Group, hiring Srinivasan Iyengar, the top silicon engineer at Cadence, to consolidate custom chip design efforts under one team. 

Tan, shown here after a White House meeting last August, has made changes across Intel.Tan, shown here after a White House meeting last August, has made changes across Intel. Alex Wroblewski/Bloomberg News

In their meetings with Intel executives, Commerce officials—who want more chipmaking on U.S. soil, rather than in Asian countries such as Taiwan, South Korea, Japan and China — have expressed keen interest in the foundry business. Government officials are closely tracking the progress of the firm’s newest manufacturing initiatives. 

The administration is also pushing Intel to expand capacity at a New Mexico plant that produces what’s known as advanced packaging, or arrays of smaller chiplets that can be combined to function as a single custom semiconductor, according to government and company officials. 

Intel and the government both view advanced packaging as the company’s best chance to compete with rival Taiwan Semiconductor Manufacturing, the world’s biggest fabricator of advanced AI chips, officials said. 

In a January earnings call, Zinsner, the CFO, predicted that the foundry business would start seeing billions of dollars in revenue in the near-term from advanced packaging, a prospect he called “way more exciting than even I had expected.”

Tan has been on a hiring spree, poaching executives from competitors including Samsung and SK Hynix, aimed at making Intel’s foundry—which reported $10.4 billion in operating losses over the last four fiscal quarters—more competitive with rivals like TSMC. In recent years, outside customers have largely lost confidence in Intel Foundry’s ability to produce reliable quantities of usable silicon wafers. 

Tan has also given more responsibility to Naga Chandrasekaran, a Ph.D engineer with a deep technical knowledge of semiconductors who has over the past year become the foundry’s most important salesman, people inside Intel say. 

The partnerships with the Trump administration and others have provided another benefit: cash. Intel executives say that without the immediate infusion of capital that came from the government’s conversion of $9 billion in federal grants into equity—along with the $5 billion from Nvidia and $2 billion that Japanese investment firm SoftBank injected into Intel in late August—the company would have had to significantly cut capital expenditures over the past year.

Instead, Intel has kept capex spending relatively consistent over the past year, and shifted its spending, at Tan’s direction, largely from building new chip plants to buying precision fabrication tools and other equipment, allowing the company to increase production of high-selling products, such as laptop and data-center CPUs.

In April, the company reported that surging demand for CPUs had driven quarterly sales in its important data-center segment up 22% year-over-year, to $5.1 billion—although the company still reported a net loss of $3.7 billion for the quarter. 

Alphabet’s Google Cloud unit announced in April it was placing a large order of Intel’s Xeon CPUs to power its data centers for so-called agentic workloads, or the type of computing required by large enterprises using AI tools. 

Google says that it has grown more confident in Intel because of the changes Tan has made in how it responds to customer needs and customization requests. 

“When they listen to our feedback and execute against it, that makes us even more excited to partner with them,” said Mark Lohmeyer, vice president and general manager of AI and Computing Infrastructure at Google Cloud, in an interview.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the July 11, 2026, print edition as 'The White House Made Fixing Intel Its Pet Project. It’s Working.'.

Robbie Whelan covers large tech companies for the Wall Street Journal, with a focus on semiconductor giants Nvidia, AMD, Intel, Broadcom and Qualcomm. A WSJ reporter since 2010, Robbie previously covered the business of Hollywood, public health policy, shipping companies, the housing market and commercial real estate. From 2016 to 2020, he was a Latin America correspondent covering politics, trade, economics, immigration and the drug war. He is the author of the forthcoming book "The House of Mouse: Bob Iger and the Fight for the Soul of Disney."

Robbie grew up in Pittsburgh and studied history at Johns Hopkins University. He's a massive Steelers fan, a music obsessive, and has played mandolin and guitar in bluegrass and country-rock bands in Brooklyn, Mexico City, Baltimore and Pittsburgh. He lives in Los Angeles.

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Alex Karp Is Saying What Every Angry CEO Is Thinking About AI - WSJ

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LLM (google/gemini-3.1-flash-lite-20260507) summary:

  • Corporate Posturing: palantir ceo alex karp attempts to position his company as a protector of institutional sovereignty while simultaneously criticizing competitors that threaten his firm's specific market niche
  • Financial Grievances: industry leaders express intensifying frustration over the high costs of artificial intelligence tokens that they claim often fail to deliver tangible enterprise value
  • Market Territorialism: large tech entities express alarm as ai labs expand their development scopes into vertical markets previously dominated by incumbent software and service providers
  • Alleged Theatrics: ai lab insiders dismiss recent public criticisms and emotive displays from rival executives as calculated efforts to promote their own commercial interests
  • Economic Uncertainty: major corporations have begun questioning the long-term utility of foundation models and are increasingly wary of losing proprietary insights to model developers
  • Regulatory Friction: government intervention in technology exports and potential intellectual property litigation highlight the chaotic struggle for dominance between established firms and emerging tech ventures
  • Competitive Rhetoric: established tech players use claims of protecting business value to justify their opposition to the pricing models and market reach of newer ai startups
  • Zero Sum Ambition: the shifting landscape suggests that despite high-minded talk of innovation, established corporations are primarily focused on defending their own market capitalization against disruptive technology rivals

Alex Karp, CEO of Palantir Technologies, speaking at the World Economic Forum.Palantir Technologies CEO Alex Karp Fabrice Coffrini/AFP/Getty Images

Alex Karp—describing himself as a “madman”—has brought the simmering tension between fast-rising AI giants and established tech players to a boil.

In both nuanced and dramatic fashion, the Palantir Technologies PLTR -1.74%decrease; down pointing triangle chief executive is drawing attention to concerns over the power and insight AI labs derive from their business customers’ data and decision-making—the magic sauce behind what makes a company successful.

This past week, Palantir PLTR -1.74%decrease; down pointing triangle released a dense white paper—entitled: “Institutional Sovereignty in the Age of AI”—that laid out 15 steps companies and governments could take to protect themselves from the likes of OpenAI and Anthropic.

That put polish on Karp’s more emotional TV appearance the week before, when he declared that “something has gone completely wrong” in the relationship between AI labs and their customers. Speaking at a frenetic pace, the tech company boss rattled on about AI labs hyping their capabilities, overcharging for tokens, or units of AI use, all while insisting that he wasn’t throwing shade at rivals while doing just that. 

Karp, who counts some of the largest U.S. companies as well as the government as clients, added, “at every single enterprise I deal with, these people are livid, they’re like, ‘I am paying for tokens that create no value.’ ” 

Karp’s I’m-mad-as-hell-and-I’m-not-going-to-take-it-anymore moment is perhaps the best illustration yet of the battle brewing between the tech establishment and the AI upstarts. That tension is playing out in politics as both parties weigh what role the government should play in overseeing AI, in geopolitics as the U.S. and China fight for tactical edges, and society writ large as the prospect of technological disruption threatens jobs and ways of life.

Karp’s lengthy CNBC appearance (nearly 20 minutes, during which anchor Becky Quick interrupted to say: “You sound pretty angry,”) ignited debate throughout the tech industry. Former White House AI czar David Sacks, a longtime critic of Anthropic, amplified Karp’s argument. 

Aerial view of a large Digital Realty Data Center building in Ashburn, Virginia.A data center in Ashburn, Va. Leah Millis/Reuters

“Anthropic has launched Claude Science, Claude Security, Claude Legal, and of course Claude Code—each expanding into categories previously served by companies building on top of their models,” Sacks posted on social media. “The pattern is consistent: Watch where value is being created, then move in directly. Dominate the model layer, then use that position to capture the most lucrative verticals.”

The big question now being spoken out loud is where do traditional businesses fit in an AI world? Who captures the value created by AI: the companies deploying it or the labs developing the actual AI? 

Neither OpenAI nor Anthropic have directly responded to Karp’s criticisms. Both have policies that say enterprise customer data aren’t used for training their models. One AI lab insider sniffed: “We would be fools reacting to Karpian theatrics; he does well talking his own book.”

Within tech circles, it is, admittedly, complicated. So many frenemies. So many deals among rivals. Last month, for example, the Trump administration put a hold on Anthropic’s ability to export its new powerful models after Amazon.com Chief Executive Andy Jassy quietly raised concerns. Amazon is an investor in Anthropic and has benefited from the AI lab using its special chips. 

Karp, too, has an angle. (He acknowledged as much.) Palantir has a product that essentially rides atop the so-called foundation model, bridging the gap between the AI and a customer. It’s a good business for the company. 

Still, Karp isn’t alone in voicing concerns in recent weeks about the imbalance between businesses and AI labs. Soaring costs have led some companies to re-evaluate how the technology is being used

Amazon CEO Andy Jassy speaking in front of a screen displaying "Generative AI."<a href="http://Amazon.com" rel="nofollow">Amazon.com</a> CEO Andy Jassy Brendan McDermid/Reuters

Microsoft CEO Satya Nadella wrote an essay on that topic and has been making the rounds talking about his concerns that companies be able to retain the learnings that come from using AI models. “If you’re just a consumer of a foundation model, then I’m not sure how you can retain enterprise value, let alone create,” Nadella said this month during an appearance at Stanford University. 

Nobody accused Nadella of having a meltdown like they did with Karp. 

Microsoft has been a big backer of OpenAI but is struggling to remain on the forefront of the fast-moving technology, which threatens to unseat software makers. On Thursday, for example, Microsoft and IBM shares were initially rocked by a media report that coffee company Starbucks is using AI to replace software it buys from those tech companies. 

By the time it takes to drink a cup of coffee, it seems the winners and losers of the new AI era can change. It is yet another sign that no one knows how the technology, which some rank up there with the advent of electricity, will remake things. What is clear is that the big tech players of today aren’t necessarily guaranteed to be the winners of tomorrow. 

But they aren’t giving up, as evident by Karp’s campaign. 

This past week wound down with Meta Platforms announcing a new version of its own AI model that included a paid tier.

Meta CEO Mark Zuckerberg, in an interview with Bloomberg News, made it clear he sees an opening to compete on price. “The pricing from some of the other labs is very extreme and has very high margins,” he was quoted as saying. “We think that there’s a real ability to be able to offer frontier or very high-level intelligence at a much more affordable cost.” 

Then there are the expected IPOs of Anthropic and OpenAI, which will likely rank the AI labs among the most valuable companies in the world. Their central role in AI is increasingly worrisome to many across the political spectrum. 

Karp’s attacks add to the list of those speaking out. 

So, was Karp angry? 

“No,” he said. “This is the voice of American business that is being channeled through me.”

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Tim Higgins is a business columnist for The Wall Street Journal, frequent contributor to CNBC, and author of books about Apple (“iWar”) and Tesla (“Power Play”). He also co-hosts “Bold Names,” the Journal’s weekly interview podcast with top business leaders. His weekly column focuses on influential companies and their leaders, such as Elon Musk, Tim Cook and Mark Zuckerberg. Tim became a columnist in 2023 after working for more than two decades as an award-winning reporter, covering everything from the bankruptcy of General Motors to the presidential campaigns of 2016.

A Missouri School of Journalism grad, Tim also earned an M.B.A. from Michigan State University. He lives in San Francisco. 


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Opinion | Chinese restrictions on outbound investment expose weakness - The Washington Post

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LLM (google/gemini-3.1-flash-lite-20260507) summary:

  • Capital Flight Panic: authorities are scrambling to contain a massive one trillion dollar outflow of personal wealth.
  • Restrictive Measures: new regulations are being forced onto overseas investments including foreign stocks real estate and insurance.
  • Economic Skepticism: residents are actively avoiding the domestic market due to mounting debt and a deteriorating housing sector.
  • Technological Protectionism: the government is aggressively restricting the movement of engineers and proprietary data to foreign companies.
  • Forced Divestment: recent orders have coerced the unwinding of international acquisitions like the meta deal for manus.
  • Autocratic Consolidation: state leaders are attempting to hoard capital and talent within borders through total central control.
  • Stifled Innovation: blocking access to global financial networks and venture capital threatens to destroy the domestic technology sector.
  • Inevitability Of Evasion: aggressive mandates will likely lead to desperate attempts by citizens to bypass state systems to preserve their savings.

China’s Communist rulers panicked about capital flight after a record $1 trillion flowed out of the country last year. Rather than dealing with the dynamics driving away wealth, Xi Jinping’s totalitarian regime is imposing stringent new controls on buying stocks, real estate and insurance policies overseas.

These investments have grown in popularity because people with savings prefer alternatives to China’s slowing economy, shaky housing market and accumulating local government debt.

The basket of regulations unveiled this month also imposes additional restrictions on Chinese engineers working abroad and bans unauthorized transfers of data, technology, goods or services to foreign companies.

That follows Beijing’s order for Meta, the owner of Facebook, to unwind its $2.5 billion purchase of the artificial intelligence start-up Manus. After originating in China, Manus transferred operations and staff to Singapore ahead of being acquired. China wants to prevent other companies from making similar moves.

The Communist Party wants to keep as much money, technology and talent as possible locked inside its borders. In addition to erecting a fire wall against America in the AI race, the goal is to boost domestic consumption. But the policy exposes fundamental weakness in their system and risks deepening Beijing’s global isolation.

It will also intensify the ire of citizens who cannot fully benefit from today’s technological gold rush.

This is what insecure leaders do in autocratic systems. Their impulse is to exert more control over every aspect of life: what to read, where to travel, the size of families and so on.

The Chinese people are inveterate savers. The average household saves around one-third of its disposable income, compared with under 4 percent among Americans, and they’re looking for somewhere productive to park that money. Overseas insurance policies have become so popular on the mainland that selling them is a coveted first job for graduates from prestigious Chinese and Hong Kong universities.

After the new limits take effect on July 1, enterprising Chinese nationals will seek more surreptitious ways to get their money out of the country. These may not generate the same returns on investment. The biggest losers will be Chinese entrepreneurs.

Tech start-ups look overseas for seed money. By cutting off access to outside capital and global financial networks, the government risks stifling the innovation it is so desperate to encourage. Economies flourish when money and talent are allowed to gravitate toward the best ideas.

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Anthropic’s Political Risks Are Real, but OpenAI’s Loom Even Larger - WSJ

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LLM (google/gemini-3.1-flash-lite-20260507) summary:

  • Legal Standoff: anthropic continues to struggle through litigation after being designated a security risk for denying military access to its software.
  • Financial Insulation: the firm faces minimal long term fiscal exposure due to defense contracts being a negligible portion of its overall revenue stream.
  • Brand Narrative: public relations posturing frames the refusal to support automated warfare and surveillance as a sophisticated moral stance to attract corporate clients.
  • Market Reaction: minor shifts in user adoption trends illustrate a temporary uptick in software installations despite the ongoing regulatory pressure.
  • Regulatory Friction: government attempts to restrict export access to advanced models proved short lived as the company quickly smoothed over cybersecurity compliance issues.
  • Competitive Contrast: peer entities like openai face far greater existential threats due to their wider mass market reach and complex congressional scrutiny.
  • Ownership Schemes: proposed solutions regarding state equity stakes or public investment vehicles highlight the inevitable desperation of these corporate entities seeking political shelter.
  • Market Speculation: the looming pursuit of ipo status drives a frantic need for both firms to navigate treacherous geopolitical waters while maintaining thin margins of legitimacy.

July 8, 2026 5:30 am ET

Dario Amodei speaking at Journal House WEF 2026.Under Dario Amodei, Anthropic has filed lawsuits against the Defense Department. Maurizio Martorana For WSJ

Anthropic has been in the political crosshairs lately. But the business consequences aren’t as dire as they might seem. And among its AI rivals, there will be plenty of political risk to go around.

The AI-model developer is embroiled in a legal fight with the Trump administration, which deemed it a security risk earlier this year after the company declined to give the Defense Department unfettered access to its tools. That battle escalated last month with a government move that forced Anthropic to cut off access to its most-advanced models.

Serious though they might appear, those political challenges likely won’t be lasting. They might even prove to be much less thorny in the long term than those of its rival, OpenAI, as both companies gear up for IPOs.

Much of the concern that has led to curbs on Anthropic merely reflects how slow the political sphere has been to adapt to the rapid advance of artificial intelligence. There aren’t many laws in place that regulate AI, leaving the government to scramble for responses when perceived threats emerge.

Some of those responses have been ham-handed. When the Defense Department designated Anthropic a supply-chain risk, the administration relied on statutes intended to prevent foreign adversaries from involvement in U.S. defense procurement.

Anthropic, which is helmed by Chief Executive Officer Dario Amodei, filed two lawsuits to block the designation, and it looks so far as though the government is likely to prevail in at least one of them, allowing it to continue excluding Anthropic from defense contracts.

That will certainly limit the market for Anthropic’s products. But the company’s exclusion from defense deals won’t take a huge financial toll. Defense, after all, is hardly the company’s bread and butter.

The bigger danger for the company is the reputational hit that could come with being seen as a security risk. That could theoretically scare away corporate customers that supply around 80% of its revenue.

Viewed in another way, though, the dustup could work to Anthropic’s reputational advantage.

The company’s beef with the Defense Department has been over its refusal to allow its models’ use in fully autonomous weapons and for mass surveillance. Even as ethical concerns are set aside, it might be more dangerous for Anthropic’s reputation among corporate customers to be associated with botched military operations and spying on ordinary people than being branded a risk by the Pentagon.

App download patterns give some support to the notion that users support Anthropic’s position. Uninstalls of OpenAI’s ChatGPT surged early this year following news that the company was negotiating its own deal with the Pentagon, according to the data provider Sensor Tower, even though OpenAI has said it places limits on how the military can use its technology. Moreover, more users installed Anthropic’s Claude than ChatGPT in the days after the Pentagon deemed Anthropic a security risk—a reversal of ChatGPT’s usual lead.

The Defense Department has plenty of reasons to mend fences with Anthropic. Anthropic has made it clear that it won’t relent on limits on its models’ use. That leaves the Pentagon with two options: find a way forward with Anthropic, or simply don’t use its tools. The latter option would deprive the department of some of the most cutting-edge AI models in the world. At some stage—possibly when political winds change—a resolution seems likely.

The Trump administration’s other crackdown on Anthropic also has been short-lived. The administration used the Commerce Department’s export-control authority to ban foreigners, including Anthropic’s own employees, from using its technology last month. That led Anthropic to cut off all access to its most-advanced Fable 5 and Mythos 5 models.

The temperature there has already cooled. The administration first allowed Anthropic to give access to a select group of trusted customers before giving it the go-ahead for wider access late last month after it addressed cybersecurity concerns.

That episode was more a testament to the Anthropic’s models’ abilities than any flaw that could put it in lasting political jeopardy. As BMO Capital Markets analyst Brian Pitz recently said in a note, the restriction “underscores the power of Anthropic’s models and their current leadership position.”

Also working in Anthropic’s favor is that its risks in the longer term look less acute than its nearest competitor’s.

OpenAI which, like Anthropic, is pursuing an IPO that could value it above $1 trillion, is more of a mass-market pIayer. While Anthropic gets almost all of its revenue from corporate customers and is the market-share leader in that area, OpenAI caters to a larger swath of users. OpenAI’s ChatGPT shot to more than a billion monthly active users in May, according to Sensor Tower, well above any other competitor and multiples of Anthropic’s user base.

But OpenAI’s wide reach is a political liability as much as a commercial asset. It exposes OpenAI to the kind of social-impact scrutiny that has dogged Meta Platforms and other social-media companies for many years. CEO Sam Altman has already testified before Congress about the risks AI poses. He is sure to be back.

Altman has repeatedly proposed that the government take an equity stake in his company and his competitors. If the U.S. owns part of OpenAI but others don’t bite, it could mean some political favor for the company. But it would also make OpenAI subject to political control that could hurt its competitive position. Rather than suggesting a straight government stake, Anthropic recently proposed investment accounts for Americans most affected by AI job losses. The accounts would hold shares of AI companies.

Any form of public-sector ownership of the companies would be a minefield and is just one of many political risks they will have to contend with in the years ahead. But fundamental differences between their two business models mean that political questions could loom larger over OpenAI in the long run, even if Anthropic is under a brighter spotlight now.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the July 9, 2026, print edition as 'OpenAI’s Political Risks Top Anthropic’s'.

Asa Fitch is a writer covering technology for The Wall Street Journal’s Heard on the Street column, based in New York. He also co-writes the Journal's weekly AI & Business newsletter. Asa previously reported on semiconductor companies from the Journal’s San Francisco and New York bureaus, where he covered Nvidia’s rise amid the AI boom and Intel’s struggles to turn itself around.

Prior to that, Asa spent a decade as a foreign correspondent in the Middle East. He joined the Journal in Dubai, where he initially covered business and finance before shifting to covering regional politics and conflicts. He covered the Gaza War in 2014, the military campaign against Islamic State in Iraq, the Yemeni civil war, and Iranian elections and politics, including the country’s nuclear deal in 2015.

Asa began his career as a general-news reporter in Connecticut and a personal finance reporter in New York. He is a graduate of Carleton College and Columbia University's journalism school.


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I Watched the DSA Go Crazy. The Democrats May Be Next.

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How worried should Democrats be about the Democratic Socialists of America? In the wake of a series of DSA victories in New York City, Jonathan Chait raised the alarm in The Atlantic, writing that as the group has risen in power, it has also grown “more hostile to the [Democratic] party, more illiberal, and more dogmatic.” Long-time DSA members, including former staff member and thought leader David Duhalde and socialist magazine publisher Nathan J. Robinson, pushed back, dismissing Chait as someone who doesn’t know or understand the DSA.

Well, I know the DSA, and as someone who was a member and served in local leadership, I can say that Chait has it right: today’s DSA is not a harmless organization. It includes disciplined, radicalized networks that have methodically expanded their power over the last decade in pursuit of extremist goals.

As the Democratic Party grapples with the DSA’s growing influence and extremism, it would do well to recognize that the same dynamic underway now—first accommodation, then capture, then surrender to insurgent radicals—already played out on a smaller scale within the DSA itself. The only defense is to out-organize it.

For decades, the DSA was mostly composed of a cohort of aging Boomers left over from its founding in 1982. It prioritized open debate and political tolerance. Following in the tradition of founder Michael Harrington, members viewed the DSA not as a revolutionary vanguard but as a reformist bridge to mainstream labor-liberalism, and they prioritized parliamentary process and pluralism.

But in the mid-2010s, the character of the organization began to change. I was in Boston at the time and witnessed the last days of the “old” DSA. New, younger members began to enter the organization, while Senator Bernie Sanders and the socialist magazine Jacobin grew their followings.

As the DSA’s cultural power expanded and it began to amass electoral victories, more leftists of varying extremist commitments were drawn in. This was an explicit strategy called “the big tent,” advanced by the then-DSA Jacobin Left. In August 2025, DSA delegates voted to remove a constitutional provision barring Leninists from entry. The provision was already a dead letter.

The old DSA’s high-mindedness became its fatal weakness. Veteran members assumed the younger generation played by the same rules of persuasion, but the newcomers’ goal was not to win arguments—it was to transform the institution and its politics.

As the organization grew, it began to profess more extreme ideas—and demand that its members do the same. First there were the purity tests of Black Lives Matter and BDS, then apologia for Putin’s invasion of Ukraine and support for Hamas and its atrocities.

The new DSA—with the help of hype-man Hasan Piker—advanced these agendas with what American labor leader Walter Reuther called “the Communists’ highly developed technique of name-calling and character assassination.” The Harringtonites fought back, but their efforts came far too late, and many prominent members of the older generation eventually left.

My final attempt to challenge Leninist-Third Worldist dominance within the DSA fell apart amid stiff resistance. In April 2025, I proposed that North Star, a caucus including many Harringtonite veterans, call on the DSA’s governing board to demand that Hamas release all hostages in Israel and surrender unconditionally.

Even allies were dismissive of my proposal’s prospects. One member wrote, “Jake’s resolution could not pass. If it passed, we would close our doors the next day and deserve it. We would not deserve to be in DSA, which is perhaps his purpose.”   

Long-time DSA insiders like Duhalde, who has advocated for the “big tent” that brought in Communists, do not dispute that this radicalization process occurred. But Duhalde maintains that this was less about “entryism” than an “unplanned left-wing refoundation.” That formulation glosses over the systematic displacement of the organization’s foundational commitments and rejects the warnings of many in DSA’s founding generation.

In fact, the organization continues to eat its own. The former radical vanguard clustered around Jacobin has been eclipsed by a coalition of Third Worldists, Trotskyists, and doctrinaire Leninists, some of whom openly endorse political violence. At the same time, condescension and outright hostility toward anti-Communism remain. One long-time DSA thought leader dismisses the anti-Communist tradition on the Left as “neoconservatism with a union label.”

There are warning signs that the Democratic Party establishment is drifting toward a similar surrender. It is already teetering on the edge of accommodation—or worse, capture—rather than opposition.

What happened to the DSA can and will happen to the Democratic Party if more moderate Democrats don’t organize against it. As Reuther, a man with experience fighting Leninists, wrote in 1948: “You have to show [Communism] up in the marketplace of ideas, expose it by honest dealing.”

But the battle is not merely ideological. Reuther’s victory over the Communists in the United Auto Workers union was the result of a clear-eyed strategy of exposing, isolating, and driving out those who rejected democratic norms. He also built a broad anti-Communist coalition. Dissident Democrats would do well to take inspiration from him.

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bogorad
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What Farage can learn from Trump | The Spectator

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LLM (google/gemini-3.1-flash-lite-20260507) summary:

  • Establishment Conspiracy: claims of a coordinated bureaucratic effort to derail populist figures through aggressive legal and political maneuvering.
  • Failed Strategy: assertions that the repeated usage of high-profile legal challenges against political outsiders often results in diminished public concern.
  • Trump Precedent: the observation that relentless legal attacks intended to disqualify an opponent ultimately failed to prevent his electoral return.
  • French Judicial Theatre: description of attempts to sideline political opposition through controversial legal convictions that appear transparently partisan.
  • Reform Party Fragility: anxieties surrounding questionable financial contributions which invite intense scrutiny from opponents and media critics.
  • Strategic Miscalculation: skeptical evaluation of a sudden resignation and by-election bid as a potentially futile and tiresome political maneuver.
  • Unorthodox Persona: insistence that a disregard for conventional standards of political conduct acts as a permanent shield against standard accountability.
  • Backfire Potential: the cynical conclusion that campaigns designed to ruin specific reputations frequently function as publicity tools that bolster voter loyalty.

In January this year Dominic Cummings – once of this parish – warned The Spectator’s editor and assistant editor that Whitehall and the establishment parties would “stop at nothing” to prevent Nigel Farage from becoming prime minister. As Cummings told the Quite right! podcast: “The people around [Keir] Starmer and all through the upper echelons of the Whitehall system are looking at Donald Trump. They’re looking across Europe, and they’re saying to themselves: ‘The lesson is to strike early and strike hard and not let these people in… Let’s smash the absolute living shit out of Farage, and make sure that he doesn’t win, by fair means or foul.'”

Cummings may be right about that, but the two most obvious comparisons with the recent hosing of Farage demonstrate how this maneuver can just as easily backfire.

Farage is, like Trump, too different from other politicians to be brought down by the usual rules

The “anti-Trump playbook” – as Trump himself has referred to the treatment of Farage – quite obviously did not work with Trump. Nevertheless, there was a period in around 2023 when it looked as if it could do so. Mar-a-Lago had already been raided by the FBI, looking for classified documents that it turned out almost every former official had lying around. And it was the year in which Trump was dragged to court in New York to face 34 felony counts relating to alleged hush-money payments and the falsifying of business records. Then in January 2024 a civil court ordered Trump to pay almost $90 million to a woman who had accused him of assaulting her in the changing rooms of a Manhattan department store three decades earlier.

To many observers it seemed that if only one of these cases had been pursued then the people most eager to keep Trump out of running in the 2024 election might have got their way. But the “get-Trump” movement over-egged it. So relentless were the accusations against him – and so patently absurd in some cases – that all but the most Trump-obsessed voters zoned out. Trump’s opponents threw everything they had at him in the hope that something would stick, only to discover that they had thrown so much at him that nothing stuck. Certainly not in the minds of the voting public who returned him to office the following year in both houses and the popular vote. The other example of something similar is happening in France where the leader of the National Rally, Marine Le Pen, just had her conviction for embezzlement upheld by a Paris court. The accusation against Le Pen was that her party had used millions of euros of EU funds to pay aides who used their time working in French national politics instead of European parliamentary matters. A thing that no other party in the EU parliament has ever done, obviously.

The French courts originally sentenced Le Pen to a four-year prison term and a five-year ban on running for political office. But in France – as in America – the case seems not to have landed with the public. The whole process looks too much like a concerted attempt to stop at nothing in order to prevent Le Pen from being able to run in France’s 2027 presidential election. Despite an appeals court upholding the conviction this week, it now looks as if Le Pen will be allowed to run in the next election, though for a year she will have to do so wearing an ankle monitor.

Which brings us back to Farage. In recent weeks the Reform party leader has looked vulnerable over his acceptance of a £5 million gift from a Thai-based crypto billionaire called Christopher Harborne. Now he is also getting criticism for accepting gifts from a roguish character in his inner circle known as “Posh George” (aka George Cottrell). Farage has responded to this with the uncommon move of resigning his parliamentary seat and vowing to run in a by-election in Clacton in which he promises to give the voters the say on whether or not they think these allegations should matter.

It doesn’t seem the wisest of moves to me. Voters tend not to like endlessly having to return to the polls. And the only precedent I can think of for Farage’s move was that odd moment in 2008 when David Davis stepped down and then stood in a fresh by-election over the issue of how long terrorist suspects could be detained without charge. My memory of that affair was that nobody could quite work out why Davis needed to resign and then fight and win a by-election in the same seat over an issue which he failed to bring any particularly fresh attention to. If he thought the stunt would advance his standing in the Conservative party, then the years since speak for themselves: to date David Davis is just about the only MP of his generation not to lead the Conservative party.

Farage is a different case. Anyone who thinks he might be intimidated into stepping down should remember that this is a man who led the UK Independence party in 2009. A party which, in the wake of the Westminster MPs expenses scandal, saw nothing odd about campaigning in the subsequent elections by knocking on prospective voters’ doors while wearing great big pound signs.

‘I don’t understand why he’s so popular…’

Personally I am not sure that any of the charges being made against Farage are going to stick. He is, like Trump, too different from other politicians to be brought down by the usual rules. It is true that he has needed personal security for many years, and it is obvious that the ways in which these and other expenses will have been paid for may be unorthodox. But the whole point of Farage is to be unorthodox. And, as with Trump, statements or scandals that would bring down any other politician fail to bring him down.

Nevertheless, it’s a fine balance. And a reminder of how much hangs on the often marginal judgment calls that people make. The people who are out to get Farage are presumably hoping to break him. If events across the Atlantic are anything to go by, they could just as easily be the making of him.

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