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Anthropic’s ‘Red Team’ team pushes its AI models into the danger zone—and burnishes the company’s reputation for AI safety

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Last month, at the 33rd annual DEF CON, the world’s largest hacker convention in Las Vegas, Anthropic researcher Keane Lucas took the stage. A former U.S. Air Force captain with a Ph.D. in electrical and computer engineering from Carnegie Mellon, Lucas wasn’t there to unveil flashy cybersecurity exploits. Instead, he showed how Claude, Anthropic’s family of large language models, has quietly outperformed many human competitors in hacking contests — the kind used to train and test cybersecurity skills in a safe, legal environment. His talk highlighted not only Claude’s surprising wins but also its humorous failures, like drifting into musings on security philosophy when overwhelmed, or inventing fake “flags” (the secret codes competitors need to steal and submit to contest judges to prove they’ve successfully hacked a system).

Lucas wasn’t just trying to get a laugh, though. He wanted to show that AI agents are already more capable at simulated cyberattacks than many in the cybersecurity world realize – they are fast, and make good use of autonomy and tools. That makes them a potential tool for criminal hackers or state actors — and means, he argued, that those same tools need to be deployed for defense. 

The message reflects Lucas’ role on Anthropic’s Frontier Red Team, an internal group of about 15 researchers tasked with stress-testing the company’s most advanced AI systems—probing how they might be misused in areas like biological research, cybersecurity, and autonomous systems, with a particular focus on risks to national security. Anthropic, which was founded in 2021 by ex-OpenAI employees, has cast itself as a safety-first lab convinced that unchecked models could pose “catastrophic risks.” But it is also one of the fastest-growing technology companies in history: This week Anthropic announced it has raised a fresh $13 billion at a $183 billion valuation and had passed $5 billion in run-rate revenue. 

Unlike similar groups at other labs, Anthropic’s red team is also explicitly tasked with publicizing its findings. That outward-facing mandate reflects the team’s unusual placement inside Anthropic’s policy division, led by co-founder Jack Clark. Other safety and security teams at Anthropic sit under the company’s technical leadership, including a safeguards team that works to improve Claude’s ability to identify and refuse harmful requests, such as those that might negatively impact a user’s mental health or encourage self-harm.

According to Anthropic, the Frontier Red Team does the heavy lifting towards the company’s stated purpose of “building systems that people can rely on and generating research about the opportunities and risks of AI.” Its work underlies Anthropic’s Responsible Scaling Policy (RSP), the company’s governance framework that triggers stricter safeguards as models approach various dangerous thresholds. It does so by running thousands of safety tests, or “evals,” in high-risk domains—results that can determine when to impose tighter controls. 

For example, it was the Frontier Red Team’s assessments that led Anthropic to release its latest model, Claude Opus 4, under what the company calls “AI Safety Level 3”—the first model released under that status—as a “precautionary and provisional action.” This designation says the model significantly enhances a user’s ability to obtain, produce or deploy chemical, biological, radiological or nuclear weapons, by providing better instructions than existing, non-AI resources like search engines. It also is a system that begins to show signs of autonomy, which include the ability to act on a goal. By designating Opus 4 as ASL-3, Anthropic flipped on stronger internal security measures to prevent someone from obtaining the model weights, or the neural network “brains” of the model—and visible safeguards to block the model from answering queries that might help someone build a chemical or nuclear weapon.. 

Telling the world about AI risks is good for policy—and business

The red team’s efforts to amplify its message publicly have grown louder in recent months: It launched a standalone blog last month, called Red, with posts ranging from a nuclear-proliferation study with the Department of Energy to a quirky experiment in which Claude runs a vending machine business. Lucas’ DEF CON talk was also its first public outing at the conference.

“As far as I know, there’s no other team explicitly tasked with finding these risks as fast as possible—and telling the world about them,” said Frontier Red Team leader Logan Graham, who, along with Lucas, met with Fortune at a Las Vegas cafe just before DEF CON. “We have worked out a bunch of kinks about what information is sensitive and not sensitive to share, and ultimately, who’s responsible for dealing with this information. It’s just really clear that it’s really important for the public to know about this, and so there’s definitely a concerted effort.” 

Experts in security and defense point out that the work of the Frontier Red Team, as part of Anthropic’s policy organization, also happens to be good for the company’s business—particularly in Washington, DC. By showing they are out front on national-security risks, Anthropic turns what could be seen as an additional safety burden into a business differentiator. 

“In AI, speed matters — but trust is what often accelerates scale,” said Wendy R. Anderson, a former Department of Defense staffer and defense tech executive. “From my years in the defense tech world, I’ve observed that companies that make safety and transparency core to their strategy don’t just earn credibility with regulators, they help shape the rules…it determines who gets access to the highest-value, most mission-critical deployments.” 

Jen Weedon, a lecturer of Columbia University’s school of International and Public Affairs, who researches best practices in red teaming AI systems, pointed out that where a red team sits in the organizational chart shapes its incentives.

“By placing its Frontier Red Team under the policy umbrella, Anthropic is communicating that catastrophic risks aren’t just technical challenges—they’re also political, reputational, and regulatory ones,” she said. “This likely gives Anthropic leverage in Washington, but it also shows how security and safety talk doubles as strategy.” The environment for AI business in the US right now, particularly for public sector use cases, “seems to be open for the shaping and taking,” pointing to the Trump Administration’s recently-announced AI Action Plan, which is “broad in ambition but somewhat scant in details, particularly around safeguards.” 

Critics from across the industry, however, have long taken aim at Anthropic’s broader efforts on AI safety. Some, like Yann LeCun, chief scientist at Meta’s Fundamental AI Research lab, argue that catastrophic risks are overblown and that today’s models are “dumber than a cat.” Others say the focus should be on present-day harms (such as encouraging self-harm or the tendency of LLMs to reinforce racial or gender stereotypes), or fault the company for being overly secretive despite its safety branding. Nvidia’s Jensen Huang has accused CEO Dario Amodei of regulatory capture—using his stance on AI safety to scare lawmakers into enacting rules that would benefit Anthropic at the expense of its rivals. He’s even claimed Amodei is trying to “control the entire industry.” (Amodei, on a recent technology podcast, called Huang’s comments “an outrageous lie” and a “bad-faith distortion.”)

On the other end of the spectrum, some researchers argue Anthropic isn’t going far enough. UC Berkeley’s Stuart Russell told the Wall Street Journal, “I actually think we don’t have a method of safely and effectively testing these kinds of systems.” And studies carried out by the nonprofits SaferAI and the Future of Life Institute (FLI) said that top AI companies such as Anthropic maintain “unacceptable” levels of risk management and show a “striking lack of commitment to many areas of safety.” 

Inside Anthropic, though, executives argue that the Frontier Red Team, working alongside the company’s other security and safety teams, exists precisely to surface AI’s biggest potential risks—and to force the rest of the industry to reckon with them. 

Securing the world from rogue AI models

Graham, who helped found Anthropic’s Frontier Red Team in 2022, has, like others in the group, a distinctive resume: After studying economics in college, he earned a Ph.D. in machine learning at Oxford as a Rhodes Scholar before spending two years advising the U.K. Prime Minister on science and technology. 

Graham described himself as “AGI-pilled,” which he defines as someone who believes that AI models are just going to keep getting better. He added that while the red team’s viewpoints are diverse,  “the people who select into it are probably, on average, more AGI-pilled than most.” The eclectic team includes a bioengineering expert, as well as three physicists, though Graham added that the most desired skill on the team is not a particular domain or background, but “craftiness” – which obviously comes in handy when when trying to outsmart an AI into revealing dangerous capabilities.

The Frontier Red Team is “one of the most unique groups in the industry,” said Dan Lahav, CEO of a stealth startup which focuses on evaluating frontier models (his firm conducted third-party tests on Anthropic’s Claude 4, as well as OpenAI’s GPT-5). To work effectively, he said, its members need to be “hardcore AI scientists” but also able to communicate outcomes clearly—“philosophers blended with AI scientists.”

Calling it a “red team” is a spin on traditional security red teams – security units that stress-test an organization’s defenses by playing the role of the attacker. Anthropic’s Frontier Red Team, Graham said, works differently. The key difference, he explained, is what they’re protecting against, and why. Traditional security red teams protect an organization from external attackers by finding vulnerabilities in their systems. Anthropic’s Frontier Red Team, on the other hand, is designed to protect society from the company’s own products, its AI models, by discovering what these systems are capable of before those capabilities become dangerous. They work to understand: “What could this AI do if someone wanted to cause harm?” and “What will AI be capable of next year that it can’t do today?”  

For example, Anthropic points out that nuclear know-how, like AI, can be used for good or for harm — the same science behind power plants can also inform weapons development. To guard against that risk, the company recently teamed up with the Department of Energy’s National Nuclear Security Administration to test whether its models could spill sensitive nuclear information (they could not). More recently, they’ve gone a step further, co-developing a tool with the agency that flags potentially dangerous nuclear-related conversations with high accuracy.

Anthropic isn’t alone in running AI safety-focused “red team” exercises on its AI models: OpenAI’s red-team program feeds into its “Preparedness” framework, and Google DeepMind runs its own safety evaluations. But at those other companies, the red teams sit closer to technical security and research, while Anthropic’s placement under policy underscores what can be seen as a triple role — probing risks; making the public aware of them; and as a kind of marketing tool, reinforcing the company’s safety bona fides.

The right incentive structure

Jack Clark, who before co-founding Anthropic led policy efforts at OpenAI, told Fortune that the Frontier Red Team is focused on generating the evidence that guides both company decisions and public debate—and placing it under his policy organization was a “very intentional decision.”  

Clark stressed that this work is happening in the context of rapid technological progress. “If you look at the actual technology, the music hasn’t stopped,” he said. “Things keep advancing, perhaps even more quickly than they did in the past.” In official submissions from Anthropic to the White House, he pointed out that the company has been consistent in saying it expects “really powerful systems by late 2026 or early 2027.”

That prediction, he explained, comes directly from the kinds of novel tests the Frontier Red Team are running. Some of what the team is studying are things like complex cyber-offense tasks, he explained, which involve long-horizon, multi-step problem-solving. “When we look at performance on these tests, it keeps going up,” he said. “I know that these tests are impossible to game because they have never been published and they aren’t on the internet. When I look at the scores on those things, I just come away with this impression of continued, tremendous and awesome progress, despite the vibes of people saying maybe AI is slowing down.” 

Anthropic’s bid to shape the conversation on AI safety doesn’t end with the Frontier Red Team — or even with its policy shop. In July, the company unveiled a National Security and Public Sector Advisory Council stocked with former senators, senior Defense officials, and nuclear experts. The message is clear: safety work isn’t just about public debate, it’s also about winning trust in Washington. For the Frontier Red Team and beyond, Anthropic is betting that transparency about risk can translate into credibility with regulators, government buyers, and enterprise customers alike.

“The purpose of the Frontier Red Team is to create better information for all of us about the risks of powerful AI systems – by making this available publicly, we hope to inspire others to work on these risks as well, and build a community dedicated to understanding and mitigating them,” said Clark. “Ultimately, we expect this will lead to a far larger market for AI systems than exists today, though the primary motivating purpose is for generating safety insights rather than product ones.”

The real test

The real test, though, is whether Anthropic will still prioritize safety if doing so means slowing its own growth or losing ground to rivals, according to Herb Lin, senior research scholar at Stanford University’s Center for International Security and Cooperation and Research Fellow at the Hoover Institution.  

“At the end of the day, the test of seriousness — and nobody can know the answer to this right now — is whether the company is willing to put its business interests second to legitimate national security concerns raised by its policy team,” he said. “That ultimately depends on the motivations of the leadership at the time those decisions arise. Let’s say it happens in two years — will the same leaders still be there? We just don’t know.”

While that uncertainty may hang over Anthropic’s safety-first pitch, inside the company, the Frontier Red Team wants to show there’s room for both caution and optimism. 

“We take it all very, very seriously so that we can find the fastest path to mitigating risks,” said Graham. 

Overall, he adds, he’s optimistic: “I think we want people to see that there’s a bright future here, but also realize that we can’t just go there blindly. We need to avoid the pitfalls.” 



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Americans are paying nearly all of the tariff burden as international exports die down, study finds

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After nearly a year of promises tariffs would boost the U.S. economy while other countries footed the bill, a new study shows almost all of the tariff burden is falling on American consumers. 

Americans are paying 96% of the costs of tariffs as prices for goods rise, according to research published Monday by the Kiel Institute for the World Economy, a German think tank. 

In April 2025 when President Donald Trump announced his “Liberation Day” tariffs, he claimed: “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike.” But the report suggests tariffs have actually cost Americans more money.

Trump has long used tariffs as leverage in non-trade political disputes. Over the weekend, Trump renewed his trade war in Europe after Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland sent troops for training exercises in Greenland. The countries will be hit with a 10% tariff starting on Feb. 1 that is set to rise to 25% on June 1, if a deal for the U.S. to buy Greenland is not reached. 

On Monday, Trump threatened a 200% tariff on French wine, after French President Emmanuel Macron refused to join Trump’s “Board of Peace” for Gaza, which has a $1 billion buy-in for permanent membership. 

“The claim that foreign countries pay these tariffs is a myth,” wrote Julian Hinz, research director at the Kiel Institute and an author of the study. “The data show the opposite: Americans are footing the bill.” 

The research shows export prices stayed the same, but the volume has collapsed. After imposing a 50% tariff on India in August, exports to the U.S. dropped 18% to 24%, compared to the European Union, Canada, and Australia. Exporters are redirecting sales to other markets, so they don’t need to cut sales or prices, according to the study.

“There is no such thing as foreigners transferring wealth to the U.S. in the form of tariffs,” Hinz told The Wall Street Journal

For the study, Hinz and his team analyzed more than 25 million shipment records between January 2024 through November 2025 that were worth nearly $4 trillion.They found exporters absorbed just 4% of the tariff burden and American importers are largely passing on the costs to consumers. 

Tariffs have increased customs revenue by $200 billion, but nearly all of that comes from American consumers. The study’s authors likened this to a consumption tax as wealth transfers from consumers and businesses to the U.S. Treasury.   

Trump has also repeatedly claimed tariffs would boost American manufacturing, butthe economy has shown declines in manufacturing jobs every month since April 2025, losing 60,000 manufacturing jobs between Liberation Day and November. 

The Supreme Court was expected to rule as soon as today on whether Trump’s use of emergency powers to levy tariffs under the International Emergency Economic Powers Act was legal. The court initially announced they planned to rule last week and gave no explanation for the delay. 

Although justices appeared skeptical of the administration’s authority during oral arguments in November, economists predict the Trump administration will find alternative ways to keep the tariffs.



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Selling America is a ‘dangerous bet,’ UBS CEO warns as markets panic

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Investors are “selling America” in spades Tuesday: The 10-year Treasury yield is at its highest point since August; the U.S. dollar slid; and the traditional safe-haven metal investments—gold and silver—surged once again to record highs.

The CEO of UBS Group, the world’s largest private bank, thinks this market is making a “dangerous bet.”

“Diversifying away from America is impossible,” UBS Group CEO Sergio Ermotti told Bloomberg in a television interview at the World Economic Forum in Davos, Switzerland, on Tuesday. “Things can change rapidly, and the U.S. is the strongest economy in the world, the one who has the highest level of innovation right now.” 

The catalyst for the selloff was fresh escalation from U.S. President Donald Trump, who has threatened a 10% tariff on eight European allies—including Germany, France, and the U.K.—unless they cede to his demands to acquire Greenland.

Trump also threatened a 200% tariff on French wine and Champagne to pressure French President Emmanuel Macron to join his Board of Peace. Trump’s favorite “Mr. Tariff” is back, and bond investors are unhappy with the volatility.

But if investors keep getting caught up in the volatility of day-to-day politics and shun the U.S., they’ll miss the forest for the trees, Ermotti argued. While admitting the current environment is “bumpy,” he pointed to a statistic: Last year alone, the U.S. created 25 million new millionaires. For a wealth manager like UBS, that is 1,000 new millionaires a day. To shun that level of innovation in U.S. equities for gold would be a reactionary move that ignores the long-term innovation of the U.S. economy. 

“We see two big levers: First of all, wealth creation, GDP growth, innovation, and also more idiosyncratic to UBS is that we see potential for us to become more present, increase our market share,” Ermotti said. 

But if something doesn’t give in the standoff between the European Union and Trump, there could be potential further de-dollarization, this time, from Europe selling its U.S. bonds, George Saravelos, head of FX research at Deutsche Bank, wrote in a note Sunday. Indeed, on Tuesday, Danish pension funds sold $100 million in U.S. Treasuries, allegedly owing to “poor” U.S. finances, though the pension fund’s chief said of the debacle over Greenland: “Of course, that didn’t make it more difficult to take the decision.” 

Europe owns twice as many U.S. bonds and equities as the rest of the world combined. If the rest of Europe follows Denmark’s lead, that could be an $8 trillion market at risk, Saravelos argued. 

“In an environment where the geo-economic stability of the Western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part,” he wrote. 

Back in the U.S., the markets also sold off as the Nasdaq and S&P both fell 2% Tuesday, already shedding the entirety of Greenland’s value on Trump’s threats, University of Michigan economist Justin Wolfers noted. Analysts and investors are uneasy, given the history of Trump declaring a stark tariff before negotiating with the country to take it down, also known as the “TACO”—Trump always chickens out—effect. Investors have been “burnt before by overreacting to tariff threats,” Jim Reid of Deutsche Bank noted. That’s a similar stance to the UBS bank chief: If you react too much to headlines, you’ll miss the great innovation that’s pushed the stock market to record highs for the past three years.

“I wouldn’t really bet against the U.S.,” he said.



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Trump added $2.25 trillion to the national debt in his first year back in charge, watchdog says

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Trump’s first year back in the White House closed with the U.S. national debt roughly $2.25 trillion higher than when he retook the oath of office, showing how fast Washington’s red ink is piling up even amid DOGE hype and promises to pay it down. Over the calendar year 2025, the growth in the national debt was even higher, some $2.29 trillion.

The acceleration in borrowing, with the national debt standing at $38.4 trillion and growing as of January 9, is sharpening warnings from budget watchdogs and Wall Street alike that the country’s fiscal path is becoming a growing vulnerability for the economy.​ The total national debt has grown by $71,884.09 per second for the past year, according to Congressman David Schweikert’s Daily Debt Monitor.

Over the 12 months from the close of trading on Jan. 17, 2025, to the end of day Jan. 15, 2026, the federal government added approximately $2.25 trillion to the national debt, according to calculations shared exclusively with Fortune by the Peter G. Peterson Foundation. That period roughly captures President Donald Trump’s first year back in office, as it is the last business day before last year’s Inauguration Day and the most recent day for which data are available. The jump from $37 trillion to $38 trillion in just two months between August and October was particularly notable, with the Peterson Foundation calculating at the time that it was the fastest rate of growth outside the pandemic. Michael A. Peterson, CEO of the nonpartisan watchdog dedicated to fiscal sustainability, told Fortune at the time that “if it seems like we are adding debt faster than ever, that’s because we are.”

As for how these figures compare to recent presidencies, the Peterson Foundation provided calculations (below) for each calendar year over the last quarter-century, revealing that President Joe Biden owns the highest year of national debt growth outside the pandemic, with almost $2.6 trillion in 2023. President Trump far and away holds the record, with nearly $4.6 trillion of national-debt growth occurring during the pandemic year of 2020, when massive federal spending occurred in the form of economic relief measures.

Trump and Biden together own the top five highest-debt-incurring years, two for Trump and three for Biden, across five of the last six years. While the figures are not adjusted for inflation, by and large, Trump and Biden have roughly doubled the rate of debt accumulation under President Barack Obama and tripled, even quadrupled the rate of growth under President George W. Bush, depending on which term you’re looking at. To be sure, both Bush and Obama presided over the aftermath of the Great Recession of 2008, with experts still debating whether their fiscal responses were large enough.

Interest costs explode

The surge in debt is landing just as interest costs on that debt become one of Washington’s fastest‑growing expenses. The specific line item for net interest in the federal budget totaled $970 billion for fiscal year 2025, but the Congressional Budget Office (CBO) calculated that, including spending for net interest payments on the public debt, this broke the $1 trillion barrier for the first time. The Committee for a Responsible Federal Budget, another nonpartisan watchdog, projects $1 trillion per year in interest payments from here on out.

Trump has repeatedly argued that his ambitious tariff program will be enough to tame the debt burden, casting duties on imports as a kind of magic revenue source for Washington. Treasury data show tariffs are bringing in significantly more money than before—likely in the $300 billion to $400 billion‑a‑year range—but even optimistic projections suggest those sums only cover a fraction of annual interest costs and an even smaller slice of total federal spending.​ As Trump retreated from many of his tariff threats—before the January 2026 spike that he threatened in relation to his desire for U.S. possession of Greenland—the CBO calculated that $800 billion of projected deficit reduction had also vanished.

At the same time, the administration has promised to share some of that tariff revenue directly with households through a proposed $2,000 “dividend” for every American, a pledge that independent analysts estimate could cost around $600 billion per year and further widen the deficit unless offset elsewhere. Economists say that the combination—more borrowing, high interest rates, and new permanent commitments—risks locking in structural deficits that keep the debt rising faster than the overall economy.​

Markets and America’s ‘Achilles’ heel’

Financial markets are taking notice. As Washington auctions hundreds of billions of dollars in new Treasury securities each week, yields on longer‑term notes and bonds have moved higher, reflecting both tighter monetary conditions and investor unease about the sheer volume of U.S. borrowing. Recent analysis from Deutsche Bank and others has described America’s mounting debt load as an “Achilles heel” that could leave the dollar and broader economy more vulnerable to shocks, particularly as geopolitical tensions and tariff fights escalate.​

Those worries are amplified by the prospect of future recessions or emergencies that could force the government to borrow even more heavily on top of today’s already‑elevated baseline. Rating agencies and international lenders have not sounded any immediate alarm about U.S. solvency, but they have increasingly highlighted fiscal risks in their outlooks, pointing to widening deficits and a political system that has struggled to impose discipline.​

Voters are paying attention

If there is one thing Americans still broadly agree on, it is that the debt problem matters. Recent polling sponsored by the Peterson Foundation found that roughly 82% of voters say the national debt is an important issue for the country, even as they remain divided over which programs to cut or taxes to raise.

Trump first won office vowing to erase the national debt over time; a decade later, after his return to power, that figure has instead climbed to record highs. As the administration prepares for another year of governing—and another season of fiscal showdowns on Capitol Hill—the question is shifting from whether the debt is growing too fast to how long the world’s largest economy can keep outrunning its own balance sheet.

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.



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