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.

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.

The Download: Early adopters cash in on China's OpenClaw craze, and US batteries slump Hustlers are cashing in on China's OpenClaw AI craze In January, Beijing-based software engineer Feng Qingyang started tinkering with OpenClaw, a new AI tool that can take over a device and autonomously complete tasks. Within weeks, he was advertising "OpenClaw installation support" on a second-hand shopping site. Today, his side gig is a fully-fledged business with over 100 employees and 7,000 completed orders. Feng is among a small cohort of savvy early adopters making serious cash from China's OpenClaw craze. As users with little technical background want in, a cottage industry of installation services and preconfigured hardware has sprung up. The rise of these tinkerers shows just how eager the general public in China is to adopt cutting-edge AI--despite huge security risks.

In physical systems where errors carry tangible consequences, AI creates value through reliability and first-time-right performance. The impact of artificial intelligence extends far beyond the digital world and into our everyday lives, across the cars we drive, the appliances in our homes, and medical devices that keep people alive. More and more, product engineers are turning to AI to enhance, validate, and streamline the design of the items that furnish our worlds. The use of AI in product engineering follows a disciplined and pragmatic trajectory. A significant majority of engineering organizations are increasing their AI investment, according to our survey, but they are doing so in a measured way. This approach reflects the priorities typical of product engineers.

Hustlers are cashing in on China's OpenClaw AI craze The AI tool has become the country's latest tech obsession. Feng Qingyang had always hoped to launch his own company, but he never thought this would be how--or that the day would come this fast. Feng, a 27-year-old software engineer based in Beijing, started tinkering with OpenClaw, a popular new open-source AI tool that can take over a device and autonomously complete tasks for a user, in January. He was immediately hooked, and before long he was helping other curious tech workers with less technical proficiency install the AI agent. Feng soon realized this could be a lucrative opportunity. By the end of January, he had set up a page on Xianyu, a secondhand shopping site, advertising "OpenClaw installation support."