THE ALGORITHM DAILY

“Your Daily Dose Of AI News.”

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Top Story: Anthropic Offers Claude AI to All U.S. Government Branches for $1

Anthropic is taking on OpenAI by offering its Claude AI models to the entire U.S. government, not just the executive branch, for only $1 per year. This deal covers the executive, legislative, and judicial branches and will last for one year. It includes both Claude for Enterprise and Claude for Government, which meet FedRAMP High security standards, meaning it can safely handle sensitive unclassified government data. Anthropic says the goal is to help agencies use AI for tasks like scientific research, public services, and health programs while keeping strict security.

The company will also give technical help to make it easier for agencies to use Claude in their daily work. Unlike OpenAI, which currently runs its FedRAMP High service only on Microsoft’s Azure, Anthropic works with AWS, Google Cloud, and Palantir. This flexibility could appeal to agencies that want more control over their data. Claude is already being used by organisations like Lawrence Livermore National Laboratory and the District of Columbia Department of Health, proving it can deliver secure, useful AI for government needs.

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Perplexity Wants to Buy Google Chrome for $34.5B

AI search startup Perplexity has offered $34.5 billion in cash to buy Google Chrome. If the deal goes through, Perplexity says it will keep Chrome’s core engine, Chromium, open source and invest $3 billion to improve it. It also promises not to alter Chrome’s default settings, meaning Google would remain the default search engine. The offer comes after the U.S. Department of Justice suggested Google might have to sell Chrome following a court ruling that it held an illegal monopoly in search. Google has stated that it will appeal this ruling.

Chrome is the world’s most used browser with a 68% market share, and some experts say it could be worth over $50 billion. Perplexity’s bid is surprising given the company is valued at $18 billion and has only raised $1.5 billion so far. The move follows Perplexity’s launch of its browser, Comet, and reports that it recently tried to merge with TikTok. If Google is forced to sell, other big companies are also expected to place bids.

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Sam Altman Reportedly Building Brain-Computer Startup to Rival Musk’s Neuralink

OpenAI CEO Sam Altman is reportedly working on a new brain-to-computer interface company called Merge Labs, which could be valued at $850 million. Sources say funding may come partly from OpenAI’s ventures team, though talks are still in the early stages. Merge Labs is said to be collaborating with Alex Blania, head of Tools for Humanity, Altman’s eye-scanning ID project. The startup would compete with Elon Musk’s Neuralink, which is developing brain implants to help people with severe paralysis control devices using their thoughts.

Neuralink, valued at $9 billion, is already in human trials and aims to revolutionise how people interact with technology. Altman has long been interested in “The Merge”, the blending of humans and technology, which he wrote about in 2017. While details of Merge Labs remain unconfirmed, it’s seen as Altman’s move to challenge Musk in the race toward the so-called “singularity,” where AI and human intelligence could merge.

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AI Tool of the Day

Ideogram

What it does:
​ Ideogram is an AI-powered image generation tool that turns text prompts into highly detailed, creative visuals. It stands out for its ability to generate images with accurate, well-styled text — something many other AI image generators struggle with. You can create posters, product mockups, marketing graphics, memes, and more, all by describing what you want in plain language.

• Best for:
  ​ Designers, marketers, entrepreneurs, and content creators who need fast, eye-catching visuals without spending hours in Photoshop.
• Price:
  ​ Free plan with basic features. Paid plans start at around $7/month, offering faster generations, higher resolution, and priority access to new features.

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AI Word of the Day

API (Application Programming Interface)

Definition:
​ An API is a set of rules and tools that lets different software programs talk to each other. Think of it like a menu in a restaurant: the menu tells you what you can order, and the kitchen (the system) prepares it. You don’t need to know exactly how the kitchen works; you just place your order through the API.

Why it matters:
​ APIs make it possible for apps, websites, and AI tools to connect and share data easily. For example, when ChatGPT pulls in real-time information from the internet or when your banking app checks your account balance, that’s an API at work. They’re essential for integrating AI into real-world systems and automating tasks.
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Stay tuned as we keep making sense of AI clear, simple, and straight to the point. Catch you in the next edition.

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Havilah Mbah

Staff Writer, The Algorithm Daily
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