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Who can say what AI can and cannot do?
The center of gravity of the week was accountability – who can say what AI can and cannot do. A federal judge ruled the Pentagon’s blacklisting of Anthropic was wrong. "Attempt to maim." Two separate juries found Meta liable for designing an addictive platform. And OpenAI quietly killed Sora, admitting that it was spending $15 million a day on a product no one was ready for.
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in the news
Weekly AI Briefing:
March 20-26, 2026
Arm ships silicon, OpenAI kills Sora, a judge interrogates the Pentagon, and a jury decides Addiction by Design is now a legal liability.
🎬Watch and listen first
Jensen Huang: "I think we have achieved AGI" · March 22 · Lex Friedman Podcast #494
→ This year, four words were most debated in AI. Huang redefines AGI "An AI that creates a billion dollar company" -Conveniently requires Nvidia chips at every step.
court week
Judge finds Pentagon’s anthropogenic blacklisting wrong "attempt to maim" · March 24 · cnbc
→ The strongest judicial protest ever against an admin’s AI action. If the injunction goes into effect, ethical red lines become legally defensible — and the Pentagon’s social-media-post-a-policy approach could be dead on arrival.
Meta and YouTube found liable in historic social media addiction trial · March 25 · npr
→ Two juries in two days – $6 million in Los Angeles and $375 million in New Mexico. The legal strategy of targeting design choices rather than content opened only 2,000 pending cases. This is Big Tech’s big tobacco moment.
silicon shift
Arm ships its first ever chip – ends 35 years of pure licensing · March 24 · cnbc
→ The AGI CPU, co-developed with Meta and already ordered by OpenAI and Cloudflare, claims 2x performance-per-rack over x86. Arm expects $15B annual revenue from chips by 2031. The stock jumped 16%.
Reflection AI eyes raising $2.5B at Nvidia-backed $25B valuation · March 25 · reuters
→ A DeepMind-spinoff less than two years old, with minimal revenue, has seen its valuation triple to $25B. "sovereign ai" Thesis – an open-source model for allied countries – is now a $2.5B stake.
OpenAI’s spring cleaning
OpenAI kills Sora, Disney’s $1B deal collapses · March 24 · hollywood reporter
→ Sora spent ~$15M/day in estimated costs against lifetime revenue of $2.1M. 30 minutes into a work meeting, Disney was told the product was finished. OpenAI’s Fidji Simo said this "side search" – Now the company is moving rapidly towards venture and Q4 IPO.
Robots walk the red carpet
Melania Trump reached the White House with a humanoid robot · March 25 · cnn
→ Image 03, World leaders greeting in 11 languages at an education summit, made for a surreal photo op. But the real story is that the first lady put humanoid tutors in every home — an Overton Window shift to robotics policy that happened before most people noticed.
AI tax on workers
Oracle plans to lay off up to 30,000 to fund AI data center buildout · March 5 · bloomberg
→ The clearest example yet of an AI capex squeeze: Cut 18% of your workforce to finance data centers that won’t return cash by 2030. Oracle joins the growing list of companies hit the block (cut 4,000) where humans finance the machines that replace them.
The supply chain is the attack surface
LiteLLM backdoor via compromised Trivi scanner – 3.4M daily downloads exposed · March 24 · snyk
→ A security scanner was hacked, which compromised the LLM gateway used by 36% of cloud environments. The credential-stealing malware remained live for three hours. Threat group TeamPCP is now openly partnering with LAPSUS$, calling for open-source security status "A joke."
In 2026, there is no question "Can AI do this?" Its "Who decides what he does – and who pays when it goes wrong?"
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