OpenAI Scoops DoW Deal After Claude's Big Crash

Storm the servers, Tech Insiders.

Washington's swapping chatbots like trading cards, Apple's budget iPhone just got magnetic swagger, and hackers are turning long-forgotten drivers into ransomware torpedoes.

Grab a surge protector; today's news might fry a circuit.

Here's what you need to know today:

Pentagon Crowns OpenAI as Anthropic Gets the Boot

Nothing says "cloud deployment" like raining on your rival.

In a 48-hour whirlwind, President Trump ordered every federal agency to ditch Anthropic's Claude chatbot, with Defense Secretary Pete Hegseth labeling the company a "supply-chain risk," and handed the Pentagon's coveted classified-network contract to OpenAI instead.

OpenAI CEO Sam Altman claims the deal installs advanced AI models behind secure firewalls for logistics, intel analysis, and cyberops, while adopting Anthropic's core red lines and tossing in a ban on automated "social credit" decisions for good measure: no mass domestic surveillance, no fully autonomous lethal weapons, and no high-stakes automated decisions.

Critics note the agreement's "all lawful purposes" clause still lets the DoW reinterpret those red lines whenever policy—or politics—shifts.

Anthropic's standoff began when it refused to drop contractual bans on US mass surveillance and fully autonomous weapons. Trump blasted the stance as "radical left woke" meddling and gave contractors six months to rip Claude out of every DoW workflow. Ironically, this was just hours before the military reportedly used Claude during airstrikes on Iran.

Hegseth piled on, barring any military partner from doing business with Anthropic.

Anthropic vows to sue, calling the designation "legally unsound." Meanwhile, hundreds of tech workers, including nearly 100 OpenAI employees, signed open letters urging their companies to hold Anthropic's line.

They didn't. Elon Musk's xAI quietly accepted the Pentagon's "all lawful use" standard to put Grok in classified systems, and Google is reportedly close behind with Gemini.

On the consumer front, a #QuitGPT campaign propelled Claude to No. 1 on Apple's US App Store, dethroning ChatGPT right before skyrocketing demand knocked Anthropic's servers offline and produced "elevated errors" across its flagship model.

In the AI arms race, even outages go nuclear.

Why it matters: Silicon Valley spent years dodging AI regulation by promising to govern itself. Now, that regulatory vacuum means the Pentagon can demand whatever it wants and casually drop a corporate death penalty on any American CEO who refuses to play ball. For an industry used to dictating its own terms of service, Washington just delivered a $60 billion reminder of who actually has the launch codes.

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MagSafe Finally Meets Budget iPhone in 17e Debut

Finally, your wallet can literally stick to your "budget" phone.

Apple's new iPhone 17e keeps the $599 tag but doubles base storage to 256 GB, instantly making last year's 16e look stingy.

The 6.1-inch handset inherits a "binned" A19 chip with a 4-core GPU and Neural Accelerators, plus the C1X modem that Apple says delivers up to twice the speed of the outgoing C1 model.

Ceramic Shield 2 glass promises triple the scratch resistance while still squeezing the same 26-hour video-playback battery into the familiar aluminum frame with the Action button.

At long last, MagSafe lands on the e-series: 15 W wireless charging, snap-on wallets, and all the magnetic doodads the flagship crowd has enjoyed since 2020.

The single 48 MP Fusion camera now shoots "next-generation" portraits that auto-identify people, dogs, and cats, letting you add bokeh (or not) after the fact. Software perks include iOS 26's Apple Intelligence features, such as Live Translation and Visual Intelligence, making this the cheapest entry point for Apple's AI.

Shoppers get three matte finishes—black, white, and a new Soft Pink—while a broader eSIM-only rollout drops the physical SIM tray in the US, Canada, Japan, and beyond.

Preorders open tomorrow, March 4 at 6:15 a.m. PT, and deliveries start March 11; trade-in promos can shave up to $599 off if you hand over an aging iPhone 13.

The 17e may be "entry-level," but with 256 GB on board and enough future-proofing to last years, you can finally stop deleting photos of your lunch.

Flash Bytes

Visibility, Control, and IT Scale

IT leaders are rethinking the service desk as a strategic platform, not just a support queue.

Join us on March 10 at 1:00 p.m. ET for Cut Complexity With Our 2026 IT Service Desk Blueprint, an expert discussion on improving governance, increasing visibility, and controlling costs without adding operational burden.

Security Alerts

Signed Drivers Weaponized Against Security Tools

Once they score local admin rights, attackers abuse the "bring your own vulnerable driver" (BYOVD) technique, slipping signed—but buggy—drivers into Windows to grab Ring 0 access, wipe EDR hooks, and kill antivirus before unleashing ransomware.

Examples abound: gangs weaponized Genshin Impact's anti-cheat driver, while others resuscitated a revoked 2010 EnCase driver that Windows still loads thanks to lax legacy rules. Now, groups like "Reynolds" even embed vulnerable drivers directly into ransomware for an all-in-one knockout punch.

Mitigate by enabling HVCI/VBS and Secure Boot, enforcing WDAC plus Microsoft's blocklist, curbing admin rights, and monitoring driver-loads (Sysmon Event ID 6, System Event ID 7045).

Massive DHS Contractor Leak Spurs Urgent Security Scramble

On Sunday, the hacktivist group "Department of Peace" leaked 17 MB of DHS data via DDoSecrets. Protesting federal agent violence and ICE deportations, the leak exposes over 6,680 companies that sought or won DHS contracts.

Spreadsheets reveal employee info, tax IDs (including potential SSNs), and project details for giants like Microsoft, Palantir, and Raytheon.

Government vendors must act now: tighten phishing defenses, enforce MFA, and warn workers. This trove is a ready-made target list for social engineering and supply-chain attacks.

Pro tip: If the "Office of Industry Partnership" suddenly calls to verify your tax ID, maybe let it go to voicemail.

Industry Shakeups

Google Absorbs Intrinsic to Power Physical AI Push

Google is pulling its robotics moonshot back into the mothership. Intrinsic, the Alphabet spin-out touting itself as the "Android of robotics," is leaving the Other Bets sandbox to become a distinct unit inside Google.

The move plugs the startup directly into DeepMind researchers, Gemini multimodal models, and Google Cloud, giving it first-class access to the stacks that power everything from Search to BigQuery.

Intrinsic's Flowstate platform lets developers drag-and-drop "skills" for perception, motion planning, and force control, then push the code from simulation to factory lines without rewriting tens of thousands of lines. By standardizing that middle layer—and leveraging their acquisition of Open Robotics, the stewards of the open-source Robot Operating System (ROS)—Google hopes robots from FANUC, KUKA, and Foxconn (who already has an AI factory joint venture with Intrinsic) will see, reason, and self-correct on the fly, no PhD or Allen key required.

Why bother? McKinsey pegs general-purpose robots as a $370 billion market by 2040, and Google wants the same playbook that put Android in billions of pockets to land Gemini in millions of robotic arms.

With CEO Wendy Tan White continuing to lead the charge, if all goes to plan, resetting a misaligned assembly robot could soon be as easy as hitting "update" in the Play Store.

At this rate, even your coffee machine may ask you to leave a five-star developer review.

Meet Our Author

Justin Meyers

Writer at TechnologyAdvice

Justin Meyers is an investigative writer and editor who draws on over a decade of meticulous hands-on research to deliver the full, trustworthy story behind consumer and enterprise tech, including cybersecurity.

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