TNB Tech Minute: Pentagon Gives Anthropic Ultimatum in AI Use Impasse

Summary

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WSJ Tech News Briefing

Episode: TNB Tech Minute: Pentagon Gives Anthropic Ultimatum in AI Use Impasse
Date: February 24, 2026
Host: Julie Chang

Overview

This episode of the WSJ Tech News Briefing focuses on the Pentagon's escalating standoff with AI firm Anthropic over military use of its AI models, highlights rapid growth at payment processor Stripe, and covers the surge in BYD’s European auto sales, marking a shift in the EV landscape. The episode also features insights on the future of AI auditing and governance.

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Key Discussion Points and Insights

1. Pentagon's Ultimatum to Anthropic

• Summary:
  The U.S. Defense Secretary, Pete Hegseth, issued a firm ultimatum to Anthropic’s CEO Dario Amadei, requiring compliance with Pentagon demands over the use of Anthropic’s AI models in military operations. The deadline is set for Friday.
• Issues Discussed:
  • Pentagon seeks greater flexibility and collaboration from Anthropic.
  • Failure to comply could lead to Anthropic being labeled as a "supply chain risk."
  • The Defense Production Act may be invoked to compel cooperation.
  • Negotiations at a Pentagon meeting ended in a stalemate.
• Attribution/Quote:
  “If Anthropic doesn't show more flexibility working with the military, Hegseth said he could label the company a supply chain risk or invoke the Defense Production Act to essentially force the company to work more collaboratively with the Pentagon.” (Julie Chang, 00:43)
• Notable Detail:
  “The ultimatum came at a Pentagon meeting today that ended in a stalemate. Axios previously reported on today's meeting.” (Julie Chang, 00:29)

2. Stripe Reports Explosive Growth

• Summary:
  Payment processor Stripe is experiencing a surge in high-growth businesses, propelled by advancements in large language models (LLMs).
• Key Insights:
  • Record numbers of new companies joined Stripe in 2025.
  • New cohort is growing 50% faster than previous year.
  • Number of companies reaching $10 million annual recurring revenue in three months doubled year-over-year.
  • Stripe credits LLMs for making it easier to build applications and code, thus accelerating entrepreneurship.
  • iOS app releases rose 60% year-over-year in December.
  • GitHub uploads increased 41% between Q3 2024 and Q3 2025.
• Attribution/Quote:
  “The payment processing platform says that in 2025 a record number of new companies joined Stripe, and that this cohort is growing around 50% faster than the 2024 cohort.” (Julie Chang, 01:09) “It attributes that growth partly to advancements in large language models, which are accelerating entrepreneurship by making it easier to build apps and code.” (Julie Chang, 01:24)

3. BYD Surpasses Tesla in European Sales

• Summary:
  Chinese auto manufacturer BYD reports a near threefold year-over-year increase in European sales, overtaking Tesla in the region.
• Key Dynamics:
  • BYD registered over 18,000 new cars in Europe last month, up from 6,900 the previous January.
  • Tesla’s regional registrations fell 17% to just under 8,001 units.
  • Other European brands such as Volkswagen, BMW, and Renault also reported sales declines.
• Attribution/Quote:
  “BYD outsold Tesla in the region last month, with new car registrations for Tesla sliding 17% ... Plus, European carmakers Volkswagen, BMW and Renault also reported sales declines.” (Julie Chang, 01:51)

4. The Shift to Proactive AI Auditing

• Expert Insight:
  Steve Soder, vice president and industry principal at Workiva, discusses the need for proactive AI auditing and governance.
• Key Points:
  • Traditional auditing is reactive and backward-looking.
  • AI governance needs to anticipate and address risks proactively.
  • Success lies in “skating to the puck” – being ahead of risks, not behind them.
• Notable Quote:
  “The value that an AI auditor and this type of governance is going to bring to a business is looking forward. The paradigm shift is being able to proactively address risks by skating to the puck, as opposed to ending up being behind the curve as the risks emerge.” (Steve Soder, 02:32) “One is proactive, the other is reactive, and it's the proactivity that's going to make this successful.” (Steve Soder, 02:48)

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Memorable Quotes & Notable Moments

• Pentagon Pressure:
  “If Anthropic doesn't show more flexibility working with the military, Hegseth said he could label the company a supply chain risk or invoke the Defense Production Act...” (Julie Chang, 00:43)

• Stripe & LLMs:
  “It attributes that growth partly to advancements in large language models, which are accelerating entrepreneurship by making it easier to build apps and code.” (Julie Chang, 01:24)

• Proactive Auditing:
  “The reality, though, is that the value that an AI auditor and this type of governance is going to bring to a business is looking forward.” (Steve Soder, 02:32)

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Timestamps for Important Segments

• Pentagon ultimatum to Anthropic: 00:16–00:55
• Stripe reports high growth & influence of LLMs: 01:00–01:40
• BYD surpasses Tesla, European auto sales data: 01:41–02:07
• Expert on proactive AI auditing (Steve Soder): 02:28–02:55

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Tone and Takeaways

• Urgent and Direct: Pentagon’s hardline with Anthropic signals rising tensions over AI and national defense.
• Optimistic: Stripe’s growth shows tech-driven entrepreneurship accelerating, largely thanks to AI tools.
• Competitive: BYD’s rise at Tesla’s expense hints at a deepening shift in the European EV market.
• Forward-Looking: Expert commentary encourages organizations to shift toward proactive, anticipatory governance in their use of AI.

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This episode provides a concise but rich window into major headlines shaking up AI policy, tech entrepreneurship, and global electric vehicle industries, while championing a progressive approach to AI oversight.

Transcript

[A]

Many organizations use multiple AI tools from multiple vendors across multiple departments. Join Steve Soder, vice president and industry principal at workiva, to learn how audit and governance teams should approach this fragmented landscape.

[B]

Here's your afternoon TNB Tech minute for Tuesday, February 24th. I'm Julie Chang for the Wall Street Journal. Defense Secretary Pete Hegseth has given Anthropic CEO Dario Amadei until Friday to comply with the Pentagon's demands on using its A AI models or face cancellation of the company's contract, people familiar with the matter say. The ultimatum came at a Pentagon meeting today that ended in a stalemate. Axios previously reported on today's meeting. If Anthropic doesn't show more flexibility working with the military, Hegset said he could label the company a supply chain risk or invoke the Defense Production act to essentially force the company to work more collaboratively with the Pentagon. Stripe is seeing more successful and high growth businesses join the platform. That's according to the company's annual shareholder letter. The payment processing platform says that in 2025 a record number of new companies joined Stripe and that this cohort is growing around 50% faster than the 2024 cohort. It's that the number of companies reaching $10 million annual recurring revenue within three months of launch was double the 2024 count. It attributes that growth partly to advancements in large language models, which are accelerating entrepreneurship by making it easier to build apps and code. The number of iOS apps released in December rose 60% year over year, while code writing platform GitHub saw its uploads jump 41% between the third quarters of 2024 and of 2025. And Chinese auto giant BYD logged a nearly threefold increase in European sales last month, topping more than 18,000 new car registrations. That's up from nearly 6,900 in January last year, according to the European Automobile Manufacturers Association. BYD outsold Tesla in the region last month, with new car registrations for Tesla sliding 17% to just under 8,001 units in January. Plus, European carmakers Volkswagen, BMW and Renault also reported sales declines. And that's it for your TMBTech minutes. Check back tomorrow morning for another quick tech update.

[A]

What does proactive AI auditing look like in practice? Here's Steve Soder, vice president and industry principal at workiva.

[C]

Well, I think auditing has traditionally been a backward looking exercise. The reality, though, is that the value that an AI auditor and this type of governance is going to bring to a business is looking forward. The paradigm shift is being able to proactively address risks by skating to the puck, as opposed to ending up being behind the curve as the risks emerge. One is proactive, the other is reactive, and it's the proactivity that's going to make this successful.

[A]

Visit workiva.com to see how top organizations are tackling AI governance and leading with clarity.

[B]

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