Background: The Trump administration previously imposed export controls on Anthropic's Fable 5 and Mythos 5 AI models, citing national security concerns over potential jailbreak vulnerabilities, after Amazon and other companies reported security issues to the White House. The controls forced Anthropic to disable the models for all customers, sparking backlash from cybersecurity leaders, industry groups, and foreign allies. Parts of the National Security Agency lost access to Mythos 5 as a result. Subsequently, the US government authorized restoration of Mythos 5 access to select US critical infrastructure organizations. Today: Anthropic's Mythos and Fable models were fully restored on July 1 after a 20-day standoff with the Trump administration. The crisis began when Amazon flagged a jailbreaking vulnerability to the administration, triggering sweeping export controls. A multi-agency crash course involving Commerce, Treasury, NSA, and White House officials led to technical fixes. Anthropic deployed engineers to Washington D.C., and after gradual approvals from various agency heads, the models were released. The episode exposed tensions between AI labs and government over safety standards, with implications for future model approvals and international releases. OpenAI's GPT-5.6 remains on hold, and the framework for approving future models remains unclear.

The US Navy is upgrading Zumwalt-class destroyers with increased fuel capacity and hypersonic CPS missiles for extended Pacific patrols. Now, the service's Next Generation Undersea Security Initiative, led by the Portfolio Acquisition Executive Strategic Systems Programs, aims to further expand CPS deployment beyond Zumwalt-class destroyers and Virginia-class submarines. The initiative explores containerized launchers, air-transportable launcher systems, and large VLS modifications for surface and undersea platforms. It also aims to increase annual CPS production into the hundreds, develop new conventional warheads, and advance solid rocket motor and thermal protection system production at cost-effective rates. This reflects a broader push to proliferate hypersonic strike capability across the fleet, as emphasized by Rear Admiral Derek Trinque and Admiral Daryl Caudle.

NATO is expected to announce the selection of Saab's GlobalEye airborne early warning aircraft to replace its aging E-3A Sentry fleet during the upcoming summit in Ankara on July 7-8. The decision follows the cancellation of a planned purchase of six Boeing E-7A Wedgetails after US Secretary of Defense Pete Hegseth questioned the platform's suitability and US funding was withdrawn. NATO may acquire 10-12 GlobalEye aircraft, potentially making Geilenkirchen base home to the world's largest GlobalEye fleet.

Background: The de facto US ambassador to Taiwan, Raymond Greene, previously called on Taiwan to increase defense spending on unmanned systems amid China tensions and a reduced defense budget. Today: At a drone forum in Taichung, Greene explicitly urged Taiwan to become a 'hornet's nest' of air, surface, and subsurface drones, citing Ukraine's use of drones for deterrence. Taiwan's government proposed a new T$210 billion ($6.59 billion) drone package through 2031, while the opposition KMT proposed its own legislation with a T$240 billion cap over six years. Taichung Mayor Lu Shiow-yen, a KMT member and potential presidential candidate, supported bipartisan cooperation on drone development. President Lai Ching-te stressed the urgency of building asymmetric capabilities as a 'race against time.'

Retired US General Ben Hodges has previously argued that Putin has no incentive to retire and that the West should not offer an off-ramp, urging commitment to Ukraine's victory. In a new interview, he warned that Western political timidity and failure to fully commit to a Ukrainian victory will render the West strategically irrelevant, criticizing both the current and previous US administrations for excessive fear of Russian nuclear escalation and transactional foreign policy. He further argued that Ukraine will ultimately win and become Europe's defense industry hub within the next decade.

Benjamin Friedman and Moritz Graefrath argue that the Trump administration's approach to US forces in Europe is not genuine retrenchment but an extortive bargain demanding higher European defense spending in exchange for maintaining the US troop presence. They advocate for a deliberate, phased withdrawal of most US conventional forces from Europe, claiming the Russian threat is overstated and European capabilities are sufficient for self-defense. The article outlines a detailed plan for withdrawal over the next decade, including removal of combat brigades, fighter squadrons, and nuclear weapons, while leaving enabling infrastructure for later phases.

Background: Qatar dispatched mediators to Tehran as US-Iran talks to reopen the Strait of Hormuz neared a memorandum of understanding, with Iran seeking to establish a toll authority rejected by the US and Gulf states. In a new development, China's Foreign Ministry spokesman Guo Jiakun publicly called for a proper settlement to end disruptions in the Strait of Hormuz, emphasizing that resuming safe and free passage serves the interests of all parties. The statement came as the US and Iran held indirect talks in Doha, mediated by Pakistan and Qatar, under the June 17 Islamabad MoU which set a 60-day negotiation deadline. Guo added that China is ready to maintain communication with relevant countries and the international community on the matter.

DARPA's 'Rads to Watts' program awarded a $3.37 million contract to Project Omega and partners to develop lightweight radioisotope power cells that convert radiation from nuclear waste into electricity. The goal is a prototype by early 2027 producing over 10 watts per kilogram with a 30-year lifespan, potentially powering drones and satellites in extreme environments and addressing battlefield power generation needs. The program involves Morgan State University, Pacific Northwest National Laboratory, Northrop Grumman, and ARA, using Strontium-90 from nuclear waste.

Sarah Kreps traces the development of the integrated circuit from Air Force-funded research to a ubiquitous commercial technology, drawing parallels to current challenges in artificial intelligence. The article argues that while government risk-underwriting enabled transformative innovation, the commercial dominance of AI creates tensions between private control and national security interests, as seen in export control debates. The piece highlights the paradox that the same partnership that produced technological breakthroughs also created strategic dependencies and vulnerabilities, particularly in semiconductor supply chains and AI governance.