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AI lab Anthropic has placed orders totaling $21 billion with Broadcom for Google's AI chips. Broadcom CEO Hock Tan confirmed that the startup is purchasing "Ironwood Racks" equipped with Google's Tensor Processing Units (TPUs).

The move follows a massive cloud partnership between Anthropic and Google announced in late October. That deal grants Anthropic access to up to one million TPUs and is expected to bring over one gigawatt of new AI compute capacity online by 2026. Anthropic maintains a multi-cloud strategy, spreading its workloads across Google TPUs, Amazon's Trainium chips, and Nvidia GPUs.

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On Thursday, President Donald Trump signed an executive order threatening to withhold federal funding from states whose AI regulations impede American innovation. Speaking to reporters, Trump argued that a patchwork of state-level rules slows down the industry.

The order directs the Secretary of Commerce to review state laws and, in cases of conflict, block access to the $42 billion broadband fund. Previous attempts to enforce such bans had failed.

The directive specifically targets anti-discrimination rules in states like Colorado, which the administration claims lead to "ideological bias." While tech giants like Google and OpenAI welcomed the move toward national standards, Representative Don Beyer warned that the order could create a "lawless Wild West" and potentially violates the Constitution by undermining state-level safety reforms.

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Google is integrating Anthropic's Model Context Protocol (MCP) directly into its cloud infrastructure. MCP serves as a universal standard for connecting AI models with external data and tools, eliminating the need to program new interfaces for every application.

Starting immediately, Google is offering managed servers that give AI agents direct access to services like Google Maps, BigQuery, and both the Compute and Kubernetes Engines. This allows AI to handle tasks like independently managing infrastructure or planning travel routes. Through the Apigee platform, companies can also deploy their own internal APIs as AI tools. Google announced plans to expand support to additional services, such as Cloud Storage and databases, in the near future.

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According to Bloomberg's sources, Meta is shifting its focus to a new AI model codenamed "Avocado," with a release potentially coming next spring. Avocado is expected to launch as a closed model, letting the company sell access directly. This marks a major shift from Meta's established open-model strategy. Internally, the open-source approach reportedly lost steam after the disappointing performance of Llama 4. Management is betting big on Alexandr Wang, who joined Meta following the company's deal with Scale AI.

The development process involves some surprising ingredients. According to Bloomberg, the team is training Avocado using several external models, including Google's Gemma, OpenAI's gpt-oss, and Alibaba's Qwen. Using Chinese technology clashes with CEO Mark Zuckerberg's previous warnings about Chinese censorship.

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