A widening conflict with Iran is straining American military resources and diplomatic relationships, while the tech industry grapples with AI governance battles that have reached the federal courts. Here's what you need to know.

U.S.-IRAN CONFLICT INTENSIFIES

Operation Epic Fury has entered its third week, and Pentagon strategists are confronting an uncomfortable reality: the mathematics of attrition may not favor the United States. American forces are burning through multi-million-dollar THAAD and Patriot interceptors to counter waves of cheap Iranian Shahed-136 drones, raising concerns about missile stockpile depletion before Tehran exhausts its drone supply (multiple outlets).

The conflict has opened fissures within the administration. National Counterterrorism Center Director Joe Kent resigned, claiming Iran posed no imminent threat and accusing the White House of launching the war under Israeli pressure. Press Secretary Karoline Leavitt pushed back forcefully, insisting President Trump acted on "compelling evidence" of a planned Iranian attack and framing the operation as essential to preventing a nuclear-armed Iran.

Meanwhile, NATO allies have declined to assist in securing the Strait of Hormuz, drawing sharp criticism from President Trump. The president singled out the UK and Prime Minister Keir Starmer, calling their stance a "foolish mistake," though European leaders maintain they were never consulted and have no desire to join the fight.

The conflict's ripple effects have reached American industry. Medical device manufacturer Stryker is restoring operations after Handala, a pro-Iran hacking group, compromised administrator credentials to remotely wipe tens of thousands of employee devices via Microsoft Intune. The company says patient safety was not affected.

AI INDUSTRY FACES GOVERNMENT SHOWDOWN

The Pentagon's bitter divorce from Anthropic continues to play out in federal court. The Justice Department argued this week that designating the AI developer as a "supply-chain risk" does not violate First Amendment protections, maintaining that Anthropic "cannot be trusted with military warfighting systems" (DOJ filing).

The Defense Department isn't waiting for the litigation to resolve. Officials are developing proprietary Large Language Models to replace Anthropic's technology after a $200 million contract collapsed over safety restrictions. The Pentagon has pivoted to partnerships with OpenAI and Elon Musk's xAI.

OpenAI, for its part, is deepening its government footprint through a new deal with Amazon Web Services to provide AI models for classified and unclassified federal workloads, including deployments in AWS GovCloud. The company will retain control over model access and requires advance notice before sensitive intelligence agencies can use its technology.

BIG TECH MOVES

Microsoft is consolidating its Copilot AI efforts under a single leader. Jacob Andreou will oversee both consumer and commercial teams, reporting directly to CEO Satya Nadella. Microsoft AI CEO Mustafa Suleyman will shift focus to building proprietary models for products across the company.

Google is betting big on energy infrastructure, partnering with Michigan utility DTE to add 2.7 gigawatts of solar and storage capacity for a new Detroit-area data center. The company also announced a $10 million fund to reduce local utility bills through efficiency programs.

On the product side, Google has expanded its Personal Intelligence feature to all U.S. users, integrating Gmail and Photos data to power tailored AI responses across Search, Gemini, and Chrome. The opt-in feature, previously limited to paid subscribers, assists with personalized recommendations while the company maintains it won't train on user data.

GLOBAL SNAPSHOT

The Associated Press documented a grim 24 hours in global imagery: Iranian missile strikes in Tel Aviv, airstrikes in Kabul and Lebanon, and President Zelenskyy meeting officials in London. Closer to home, border authorities intercepted 23 individuals in a failed maritime smuggling attempt off the California coast.

TECH AND CULTURE NOTES

Nvidia CEO Jensen Huang defended the company's new DLSS 5 technology against critics, calling them "completely wrong" and explaining that the system integrates generative AI with geometry and texture controls for developer fine-tuning.

The UK's Advertising Standards Authority banned a YouTube ad for AI editing app PixVideo after determining it implied users could digitally undress women, ruling it promoted harmful stereotypes.

Tools for Humanity launched AgentKit, a verification system designed to confirm humans—not bots—are behind AI shopping agents, integrating World ID with blockchain protocols to combat automated fraud.

And in Philadelphia, a dog stranded on an elevated train platform ledge was rescued by a coalition of animal control officers, police, and transit workers. The pup is safe and will soon be available for adoption.