In this episode, we break down the escalating Anthropic-Pentagon clash, including the best arguments for either side, Defense Secretary Pete Hegseth's ultimatum, and the potential consequences of designating Anthropic as a "supply chain risk" or invoking the Defense Production Act (00:34). We then discuss several recent stories that are sparking discourse about the economic impacts of AI (28:58) and a senior government official's claim that DeepSeek's forthcoming model was trained using Nvidia's Blackwell chips and frontier model distillation (45:51).