Tech Giants Loosen AI Limits for Pentagon

Microsoft and Amazon have updated their AI usage terms to give the Pentagon greater control over their systems, including allowing what they call lawful operational use. The changes significantly walk back restrictions that had previously derailed Anthropic's deal with the Defense Department earlier this year. The new terms represent a notable shift in how major tech companies are approaching military AI contracts, effectively softening the guardrails that Anthropic had sought to maintain, which ultimately caused its own Pentagon agreement to collapse.