DAILY SITUATION RECAP: - Anthropic wins in federal court - South Korea is building a free AI service for its citizens - Tencent releases Hy4 Preview - Trump admin is trying to close China's AI chip loophole Federal court rules in favor of Anthropic. A federal judge ruled that the Pentagon acted illegally by labelling Anthropic a supply chain risk. U.S. District Judge Rita Lin said that Anthropic was being illegally punished for criticizing the Department of War’s views on how they would use Anthropic’s models internally, and who had the final say for what was allowed. Anthropic sued the Pentagon in March after they were designated a supply chain risk that same month. a16z announces $1.1 billion Machine Age Fund, which will fund the physical buildout of AI hardware, including chips, networking, memory, and storage. a16z notes that all layers of the AI stack are hitting a wall of supply chain capabilities and that innovation and investment is needed to meet demand. Trump admin working on rule to stop China’s remote access to chips. The PRC currently has remote access to AI computing clusters in nearby countries like Thailand and Singapore. This access is seen as a loophole in current export bans of advanced AI chips to China. The Department of Commerce is likely to share this rule with trade groups in September. Memory maker CXMT’s first-half revenue increases 873.64%. CXMT posted a net profit of 77.6 billion yuan ($11.5 billion USD), a dramatic turnaround from a net loss of 2.3 billion yuan ($342 million USD) in 2025. Tencent releases Hy4 Preview, an open-source 770B parameter model with a 1M token context window. Tencent says the model is a frontier open-source model built for productivity. South Korea is building a free, nationwide AI service citing a need to strengthen the nation’s domestic AI options for its citizens. The government-backed program aims to provide free AI agents and chatbots to the public and has chosen SK Telecom, KT Corporation, and Kakao to build these services. Anthropic’s talks to acquire MatX for $7 billion abandoned. MatX is a semiconductor company that makes custom chips designed to support AI models. The talks with MatX show Anthropic’s continued interest to design custom chips for their models. Anthropic plans to spend $36 billion on Google’s AI chips in the future. The X Safety team found bot farm manipulating debate over American AI policy. The investigation concluded that a bot farm of 200 accounts was making posts claiming that “AI data centers are driving up household electricity prices and straining the grid”