The generative AI models used in classified environments can answer questions but don't currently learn from the data they see. The Pentagon is discussing plans to set up secure environments for generative AI companies to train military-specific versions of their models on classified data, has learned. AI models like Anthropic's Claude are already used to answer questions in classified settings; applications include analyzing targets in Iran. But allowing models to train on and learn from classified data would be a new development that presents unique security risks. It would mean sensitive intelligence like surveillance reports or battlefield assessments could become embedded into the models themselves, and it would bring AI firms into closer contact with classified data than before. Training versions of AI models on classified data is expected to make them more accurate and effective in certain tasks, according to a US defense official who spoke on background with .

Plus: China has approved the world's first commercial brain chip. Where OpenAI's technology could show up in Iran OpenAI has controversially agreed to give the Pentagon access to its AI. But where exactly could its tech show up, and which applications will its customers and employees tolerate? There's pressure to integrate it quickly with existing military tools. One defense official revealed it could even assist in selecting strike targets. OpenAI's partnership with Anduril, which makes drones and counter-drone technologies, adds another hint at what is to come.

Where OpenAI's technology could show up in Iran Three places to watch, from the margins of war to the center of combat. It's been just over two weeks since OpenAI reached a controversial agreement to allow the Pentagon to use its AI in classified environments. There are still pressing questions about what exactly OpenAI's agreement allows for; Sam Altman said the military can't use his company's technology to build autonomous weapons, but the agreement really just demands that the military follow its own (quite permissive) guidelines about such weapons. OpenAI's other main claim, that the agreement will prevent use of its technology for domestic surveillance, appears equally dubious . It's not the first tech giant to embrace military contracts it had once vowed never to enter into, but the speed of the pivot was notable. Perhaps it's just about money; OpenAI is spending lots on AI training and is on the hunt for more revenue (from sources including ads).

The promise of autonomous agentic AI requires significant changes in the governance landscape. Parents of young children face a lot of fears about developmental milestones, from infancy through adulthood. The number of months it takes a baby to learn to talk or walk is often used as a benchmark for wellness, or an indicator of additional tests needed to properly diagnose a potential health condition. A parent rejoices over the child's first steps and then realizes how much has changed when the child can quickly walk outside, instead of slowly crawling in a safe area inside. Suddenly safety, including childproofing, takes a completely different lens and approach. Generative AI hit toddlerhood between December 2025 and January 2026 with the introduction of no code tools from multiple vendors and the debut of OpenClaw, an open source personal agent posted on GitHub.

Plus: Elizabeth Warren wants answers on xAI's access to military data. Human-made glass is thousands of years old. But it's now poised to find its way into the AI chips used in the world's newest and largest data centers. This year, a South Korean company called Absolics will start producing special glass panels that make next-generation computing hardware more powerful and efficient. Other companies, including Intel, are also pushing forward in this area. If all goes well, the technology could reduce the energy demands of chips in AI data centers--and even consumer laptops and mobile devices.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review's editorial staff. AI-enabled fraud and the coming impact of quantum computing are redefining digital-asset security, putting pressure on owners and service providers to act now. Cryptocurrency thieves are getting creative. Taking advantage of the desire to learn more about crypto and banking on the digital assets' reputation as a way to get rich quick, AI-generated video tutorials are touting ways of make money from crypto-trading arbitrage -- purportedly teaching viewers how to create maximal extractable value from trades using smart contracts.

Why physical AI is becoming manufacturing's next advantage From simulation driven development to real world execution, Microsoft and NVIDIA are helping manufacturers leverage AI to cross the industrial frontier with confidence. For decades, manufacturers have pursued automation to drive efficiency, reduce costs, and stabilize operations. That approach delivered meaningful gains, but it is no longer enough. Today's manufacturing leaders face a different challenge: how to grow amid labor constraints, rising complexity, and increasing pressure to innovate faster without sacrificing safety, quality, or trust. The next phase of transformation will not be defined by isolated AI tools or individual robots, but by intelligence that can operate reliably in the physical world . This is where physical AI--intelligence that can sense, reason, and act in the real world--marks a decisive shift.

The Download: how AI is used for military targeting, and the Pentagon's war on Claude Plus: an ex-DOGE staffer has been accused of stealing social security data. The US military might use generative AI systems to rank targets and recommend which to strike first, according to a Defense Department official. A list of possible targets could first be fed into a generative AI system that the Pentagon is fielding for classified settings. Humans might then ask the system to analyze the information and prioritize the targets. They would then be responsible for checking and evaluating the results and recommendations. OpenAI's ChatGPT and xAI's Grok could soon be at the center of exactly these sorts of high-stakes military decisions.

A specialized glass layer could make tomorrow's computers faster and more energy efficient. An early version of the glass substrate developed by Absolics. Human-made glass is thousands of years old. But it's now poised to find its way into the AI chips used in the world's newest and largest data centers. This year, a South Korean company called Absolics is planning to start commercial production of special glass panels designed to make next-generation computing hardware more powerful and energy efficient. Other companies, including Intel, are also pushing forward in this area.

Though the US military's big data initiative Maven has sped up the planning of strikes for years, the comments suggest that generative AI is now adding a new interpretative layer to such deliberations. The US military might use generative AI systems to rank lists of targets and make recommendations--which would be vetted by humans--about which to strike first, according to a Defense Department official with knowledge of the matter. The disclosure about how the military may use AI chatbots comes as the Pentagon faces scrutiny over a strike on an Iranian school, which it is still investigating. A list of possible targets might be fed into a generative AI system that the Pentagon is fielding for classified settings. Then, said the official, who requested to speak on background with to discuss sensitive topics, humans might ask the system to analyze the information and prioritize the targets while accounting for factors like where aircraft are currently located. Humans would then be responsible for checking and evaluating the results and recommendations.