FT : Crackdown on overseas students delivers blow to London campus

Crackdown on overseas students delivers blow to London campus
Collapse in enrolment at Glasgow Caledonian University outpost reflects upheaval in sector as ministers curb migration

After years of rapid expansion, the London campus of Glasgow Caledonian University has suffered a collapse in enrolment as stricter visa rules and concerns over internal governance expose the risks of a business model heavily reliant on overseas students.

The outpost only inducted 31 students this academic year, down from 1,624 in 2024-25, according to figures shared with the FT, after the university tightened its recruitment processes amid a government crackdown on immigration.

After losing £33mn in income over two years, Glasgow Caledonian — projecting a £10mn deficit next year — plans to axe 100 jobs directly affected by the decline in foreign students.

Last month staff were told that the London campus director Peter Jones would be taking a “period of leave” and that Andrea Nelson, former pro vice-chancellor of research, would replace him “for an undefined period”.

The struggles at Glasgow Caledonian reflect the upheaval in UK higher education as ministers seek to cut migration and introduce tougher measures to ensure only genuine students come to the UK.

Its London campus is almost entirely populated by postgraduate international students each paying at least £16,700 in annual tuition fees — double what UK nationals pay.

But enrolment at its London outpost halved to 1,230 this academic year, driven by a sharp drop in recruitment from India and Pakistan.

Two current and two former employees of the London campus told the FT that they reckoned that the push to sustain high international enrolment often took precedence over maintaining academic standards.

Staff said they were left dealing with alleged falsified attendance records and suspected use of ghostwriters.

Last August, Glasgow Caledonian University appointed law firm Anderson Strathern to review its leadership in London, including “organisational culture and behavioural standards”.

Recommendations from the investigation, which will not be published, will be integrated in the coming weeks into a three-year plan for the London campus.

A former lecturer at the outpost, which opened in 2010, said the campus was seen by senior management as Glasgow Caledonian’s “moneymaker”.

This had led to many students with poor English or academic skills being admitted without the necessary support in the postgraduate environment, they said.

The lecturer, who requested anonymity to speak freely, said staff were expected to fall in line behind the numbers-driven strategy.

“I know a lot of my former colleagues find that really frustrating — that they end up being glorified administrators just trying to work around the system that’s about just getting students through.”

They said it was well known that some international students would skip classes in order to earn money, often as delivery drivers.

But they said students were not entirely to blame, describing a “horrible set-up” in which foreign students were suffering the consequences of a higher education system that had encouraged expansion.

Another former staff member in London estimated that at least 10 per cent of students would register and then disengage from their course. “In many cases, students barely turned up for classes. In some cases they weren’t even living in London,” the person said.


Following record numbers of student visa holders going on to seek asylum in Britain, Labour’s immigration white paper introduced rules targeting exploitation of the system “where visas are used as an entry point for living and working in the UK without any intention to complete the course”.

Almost 16,000 student visa holders sought asylum in the UK in 2024 — nearly six times as many as in 2020.

In response to the white paper, Glasgow Caledonian in July suspended recruitment to most postgraduate taught courses and suspended the international recruitment to all postgraduate research courses, with new arrivals plummeting as a result.

The university was forced to strengthen visa compliance after the Home Office last July put the institution on an action plan, a formal intervention compelling the university to take measures to avoid losing its student sponsor licence. Five higher education institutions are under such measures.

Nelson said in February that both the London and Glasgow campuses would pause recruitment from Pakistan for at least the rest of 2026.

Students from Pakistan account for more than half, or 630, of the current intake at the campus in Spitalfields, east London, which specialises in insurance, banking, finance and marketing degrees and employs about 55 staff.

Nationally, study visa rejections for those applying in the January 2026 intake rose almost 420 per cent year on year, with Pakistan and Nigeria facing the highest increase, according to Enroly, a platform used by international students for managing enrolment.

In a statement, Glasgow Caledonian said universities were “continuously making decisions about international recruitment markets” in response to regulation and that it reviewed its courses to ensure they were of high quality and met market demand.

Two business lecturers at the London campus told the FT that some students would fraudulently log their attendance using the university’s electronic monitoring system that requires students to scan a QR code — which can be easily shared online — to sign themselves in.

Both lecturers had cross-checked their own manual record of attendance with the QR code registration and found disparities in the number of people registered as present.

Even though incidents of this had fallen after the university last year reduced the QR code’s time limit to 10 minutes, they said attendance data was still inaccurate.

“You can just take a picture of the QR code and put it on WhatsApp within 10 minutes, it’s easily manipulated — it’s a joke,” one said. “I had 15 students in my seminar, but then 30 signed in.”

Even when they raised the issue with leadership, students were not meaningfully penalised, they said.

There have also been concerns around academic cheating. After the university’s disciplinary committee flagged “a small number” of “contract cheating/ghostwriting” cases in 2021-22, it launched a working group for “cheating and collusion”. But the two lecturers said they believed the practice remained widespread.

Two different academics warned colleagues last November that they suspected several students had paid ghostwriters to complete their coursework because elements were almost identical across several submissions, in emails seen by the FT. 

One of the former staff members also said that “students were given multiple attempts to submit coursework and assessment deadlines were not enforced”.

“Concerns about ghostwriting were ignored even when there was overwhelming evidence,” they added. “It might as well have been a case of just take the money and print the certificate.”

Glasgow Caledonian said its policies and practices “challenge instances of academic misconduct robustly”.

“We take any allegations or complaints extremely seriously. When issues were raised last year in relation to our GCU London Campus, we commissioned an external independent review, followed a thorough internal process, and are taking appropriate action,” it added.

“Like all universities, international students are valued members of our community and international recruitment income helps us to deliver an excellent student experience and invest in our research activity.”

Branch campuses have proliferated globally as UK universities seek to bolster their finances, with at least 20 operating in London.

Dave Amor, independent adviser on international education strategy, said London campuses would be disproportionately affected. “A lot of institutions are feeling quite desperate,” he said.

FT : Samsung seeks AI deals to challenge Apple’s smartphone lead

Samsung seeks AI deals to challenge Apple’s smartphone lead
Korean giant’s device chief says its future Galaxy devices will host multiple models as users mix and match AI tools

Samsung wants to strike new strategic deals with AI companies to integrate a variety of models into its smartphones in an effort to erode Apple’s lead in the global market.

TM Roh, the Korean tech giant’s consumer device chief, told the FT it was “open to strategic co-operation” with more AI groups such as OpenAI, having recently added the Perplexity AI search engine to its mobile operating system.

He said Samsung’s research shows consumers are increasingly using several AI services rather than relying on a single platform, adding that greater choice could help Galaxy devices stand out in a market where Apple has yet to roll out many of the AI features it unveiled last year.

“We got into the preparation earlier than others, [and] that is how we have taken and maintained leadership in mobile AI,” said Roh, who is co-chief executive of Samsung Electronics.


The manoeuvring highlights how AI is becoming the next front in the battle for smartphone users.

With global handset sales stagnating and hardware upgrades offering only marginal gains, manufacturers are betting that AI-powered assistants and search tools will influence which brand they buy next.

Counterpoint Research last week forecast that global shipments will fall 12 per cent in 2026, the lowest annual volume since 2013.

Last week, Samsung announced its family of S26 devices, which includes a suite of new AI tools. Perplexity has been added to the operating system, allowing users to ask “Hey Plex” to summon its voice assistant.

Samsung has already integrated Google’s Gemini models into its devices, and last week showcased a voice assistant that can book a taxi without users pressing a button.

“Consumers are not bound to one AI platform, they are utilising multiple AI models,” Roh said, “We are open to all solutions . . . choice, I believe, is how Galaxy AI appeals to consumers.”

The race to offer the most advanced AI agents has prompted a flurry of dealmaking with smartphone makers that control access to millions of consumers. OpenAI is also building its own family of AI devices.

Apple, which has struggled to update its “Apple Intelligence” suite of tools, struck a deal in January to use Google’s Gemini models.

It has also leaned on OpenAI’s ChatGPT to add smarter search and writing functions. Apple is expected to release an overhauled Siri voice assistant this year.

Samsung has also opted to raise US prices for its S26 range by $100 for two models, partly owing to a memory chip supply crunch.

Memory suppliers, including SK Hynix, Micron and Samsung itself, have prioritised making high-bandwidth memory for AI data centres over chips used in smartphones.

“A lot of this is affected by the current ongoing expansion of AI infrastructure,” Roh said.

The International Data Corporation this week warned a “tsunami-like shock” was hitting the market, reversing a “decade-long trend in which consumers consistently received smartphones with better specifications at lower prices.”

Apple defied some analyst expectations last year when it opted not to raise prices for the new iPhone 17 family, with sales of the new devices helping deliver a record holiday quarter.

>>> Barrons Weekend Summary

Cover:
-The scale of Operation Epic Fury, commencing on February 28, took analysts by surprise as US and Israeli forces targeted nearly 2,000 locations in Tehran over 100 hours, resulting in the death of Iranian leader Ayatollah Ali Khamenei. This marked America's largest military operation in the Middle East since 2003, but initially, the U.S. stock market reacted with resilience, seemingly unaffected. However, investors must consider the war's potential financial impacts, including shifts in stock market dynamics and inflation, particularly with rising oil prices, which surged by 22% to nearly $90 a barrel. The conflict jeopardizes Iran’s oil output and access to the Strait of Hormuz, a critical shipping route for a significant portion of the world’s oil and liquefied natural gas, which is now threatened by instability and insurance issues.

Interview:
-no update

Tech Trader:
-Salesforce's AI momentum has surprised investors amid a software stock downturn, attributed to fears of AI disruption. AI agents, designed to perform complex tasks similarly to humans, raise concerns about the future of knowledge work and traditional software use. Attention centers on AI start-ups OpenAI and Anthropic – the latter targeting enterprise software markets through products like Claude Code and Claude Cowork. However, both companies encounter challenges in selling to enterprises, highlighted by OpenAI’s need for IT consultants and Anthropic’s acknowledgment of premature hype surrounding AI deployment, with many initiatives failing to succeed.

The Trader:
-The Iran war has severely disrupted oil markets, but the impact on liquefied natural gas (LNG) markets could be even more significant. LNG, crucial for Europe and Asia's energy needs, relies heavily on Middle Eastern suppliers. Recently, Qatar, which provides about 20% of global LNG, has shut down its main plant after an attack from Iran, declaring force majeure on its contracts. The Strait of Hormuz is blocked, preventing energy products from being exported. Consequently, LNG prices in Europe surged 67%—the highest since the Russian invasion of Ukraine. U.S. exporters like Cheniere Energy and Venture Global have benefitted, with their stock prices rising. Despite the volatility, the crisis underscores the growing importance of American LNG in global energy security during conflicts, signaling that such disruptions are now significant and recurring rather than isolated incidents.
-Stagflation describes a situation of stagnant economic growth combined with rising prices, a condition not currently predicted to mirror the severe 1970s crisis, yet indicators of trouble exist. Recent employment data from the Bureau of Labor Statistics reveal a loss of 92,000 jobs in February, raising the unemployment rate to 4.4% with no job growth since last April. Concurrently, rising oil prices, particularly Brent crude surpassing $90 a barrel due to escalating military tensions in the Gulf and Kuwait's production issues, contribute to inflation. Chicago Federal Reserve President Austan Goolsbee warns that these factors could lead to widespread stagflation by worsening inflation and employment conditions simultaneously. Wall Street analysts, including Ed Yardeni, express concern that prolonged conflict may exacerbate the oil shock, compelling the Federal Reserve into a difficult position of managing both rising inflation and unemployment.
Features:
-The oil market is facing a significant crisis as supply diminishes, potentially leading to prices surpassing $100 per barrel. Since the start of the Iran war, oil prices have surged by 27%, with international benchmarks exceeding $90 for the first time since 2024. Iraq has announced production cuts over 50%, and Kuwait is also reducing output due to full storage tanks, as the Strait of Hormuz remains blocked. This strait is crucial for 20% of global oil transport. Analysts, like David Oxley from Capital Economics, warn that disruption could push prices even higher, affecting gasoline costs. Current global oil supply stands at 107 million barrels per day, but production changes can have substantial price impacts. The Middle East production stoppages challenge previous assumptions about Iranian strategies regarding oil infrastructure, with heightened risks to oil facilities now apparent.
-Geopolitical instability acts as a significant driver for defense sector investments, with Cadre Holdings leveraging this environment as part of its multifaceted growth strategy. The Jacksonville, Florida-based firm, valued at $1.9B, excels in the public safety supply chain, offering a variety of products such as holsters, tactical gear, ballistic armor, field communications systems, and more. As demand for improved survivability and modernization rises among law enforcement and military agencies, Cadre has established itself as a comprehensive supplier for both U.S. and allied forces in complex threat scenarios. Cadre's stock has shown remarkable performance, more than doubling in value over the past three years, fueled by increased funding for local police and an expansion into the nuclear sector. Currently trading near record highs, projections indicate further potential growth regardless of the evolving situation in the Middle East, with estimates suggesting a rise to $70 per share—a potential 55% increase from its recent price of $44.50.

Europe:
-Spanish Prime Minister Pedro Sanchez is in the spotlight for denying US military access to his air bases amidst attacks on Iran. Meanwhile, Bernd Lange, a 70-year-old German Social Democrat and chair of the European Parliament’s International Trade Committee, has effectively challenged US trade policies by blocking ratification of a trade deal following a US Supreme Court ruling that annulled foundational tariffs. This has led to heightened skepticism in Europe about trusting the US, with trade negotiations suffering setbacks due to mixed messages from the Trump administration. The Turnberry Agreement originally aimed to reduce US tariffs on European imports, but recent developments have caused uncertainty, prompting the EU to prepare a retaliation list against U.S. tariffs, showing a determined front against Trump's aggressive trade strategies.

Emerging Markets:
-No update

Commodities:
-Precious metals, particularly gold and silver, have experienced significant volatility recently, influenced by the US-Iran conflict and rising oil prices affecting inflation and interest rates. Gold initially surged nearly 4% following US strikes on Iran, hitting $5,400 before retreating to $5,180, though still up over 20% this year. This decline is attributed to rising US. Treasury yields tied to inflation concerns, which negatively impact non-yielding assets like gold. The recent spike in oil prices has decreased the likelihood of a June rate cut by the Federal Reserve, further pressuring gold prices. Warren Patterson from ING noted that while geopolitics provide some support, macroeconomic factors dominate the market. Meanwhile, silver has faced a complex situation, initially gaining 60% but then experiencing a 30% drop due to margin increases and shifting expectations around Fed policy.

Streetwise:
-No update

FT : France’s unfolding nuclear umbrella

France’s unfolding nuclear umbrella
President Macron’s deterrence initiative puts Germany on a fast-track to UK-level nuclear cooperation

Deterrence gap
Europe’s interest in the nuclear umbrella has been underscored by Russia’s invasion of Ukraine and its accompanying nuclear threats. At the same time, confidence in the US security guarantee under President Donald Trump has been severely dented. 

There are two “paramount risks”, according to an excellent assessment of Europe’s deterrence needs and options by the European Nuclear Study Group of defence experts: that the US abandons its Nato commitments or that it is no longer willing to shoulder nearly all the responsibility for extended deterrence in Europe, given the growing threats in Asia. Together these risks create the danger of a perceived “deterrence gap”, which adversaries might be tempted to exploit.

That means that European states will have to play a bigger role in nuclear deterrence. But who and how? Given the UK already assigns its nuclear weapons to the defence of Nato members, the expectations have centred on France.

Ground-breaking
Macron’s answer is “forward deterrence” — an offer to bring selected partner countries under France’s nuclear protection through strategic dialogue, joint exercises, support missions and ultimately temporary deployments of Rafale fighter jets and their nuclear missiles. 

Through these activities France would “fully factor in” the interests of its allies in its deliberations over any nuclear use. There would be no formal nuclear guarantee to other countries and France would retain sole control of its weapons, so the red lines that have defined its sovereign deterrent since the 1960s would remain. 

Nuclear experts described Macron’s speech as ground-breaking. I will leave the doctrinal implications to the nuclear boffins — you can read this thread from Bruno Tertrais or this take from Ankit Panda. 

I want to focus on three diplomatic and political aspects.

Germany, front and centre
The first is the centrality of Germany to Macron’s nuclear plan. France has initiated discussions with Germany, Poland, the Netherlands, Belgium, Greece, Denmark and Sweden as well as the much longer-running and already close cooperation it has with the UK. But it was Germany that was singled out as a “key partner” for the French forward deterrence initiative. France and Germany have set up a steering group for a dialogue on doctrine and cooperation on strategy and German forces will take part in French nuclear exercises later this year. 

This puts Berlin on a fast-track to UK-level nuclear cooperation. Merz was looking to France to step up and Macron did. From France’s point of view, it could help cultivate a strategic culture that it believes is lacking in Germany — a legacy of its post-war reckoning and decades of dependence on the US for security. It could also help ease friction between Paris and Berlin and help compensate for the breakdown of their joint project to build a next generation fighter jet, known as FCAS.

Shouldering the burden
There is more to Franco-German defence cooperation than combat aircraft. That is underscored by a second core feature of the Macron doctrine: the importance of what he calls épaulement, best translated as mutual support.

As a complement to the deterrent, Europeans need more of their own capabilities to manage crises before the nuclear threshold is crossed, Macron said. That means early warning systems, expanded air defence systems and long-range conventional missiles. 

“For our nuclear deterrence to be strong, every dimension of our conventional capabilities must be strong,” the president said.

Partner countries will have to develop and deploy these capabilities together. The implicit bargain is that Germany and others may shoulder more of the burden for these assets (as for example it is doing on military satellites). French officials insist they are not seeking any European financial contribution for their deterrent, since they are not willing to cede any claim on it.

These mutual support functions are themselves a huge endeavour for Europe and will form a big part of European defence collaboration in the years to come. The ENSG study for example reckons Europe will need to build a stockpile of 15,000 deep precision strike missiles to deter Russia alongside nuclear weapons. The war in Iran has only re-emphasised the importance of long-range strike capabilities.

Muted criticism
The third interesting feature is Macron’s political pitch and the somewhat positive domestic reaction to it. The president’s argument is that dispersing France’s jet-carried nuclear weapons to partner countries and their mutual support can only strengthen France’s deterrent. But there will be no dilution of France’s total control of the bomb.

This balancing act appears to have disarmed Macron’s critics. The reaction from the leaders of the far-right Rassemblement National Marine Le Pen and Jordan Bardella was muted, which might offer some reassurance to Europeans that France’s new nuclear doctrine will live beyond Macron’s presidency, which ends next year. 

“There is no doubt that in the event of an RN candidate’s victory in 2027, or that of any other party, once briefed by the nuclear forces, the new president — male or female — will recognize the operational value of this measure in enhancing the survivability of our deterrence,” noted Etienne Marcuz, associate fellow at the Foundation for Strategic Research think tank.

Macron reassured his European partners that France’s deterrent would be complementary to Nato’s. It is too small to substitute for it in any case — Tertrais describes it as “backstop” for Europe. But it remains outside of Nato. FT and Le Monde columnist Sylvie Kauffmann argues that this creates a contradiction that may prove hard to manage in practice as partner countries demand more of a say over how the deterrent is deployed. But Macron’s balancing act has got off to a good start.

>>> CrunchBase : The Week’s 10 Biggest Funding Rounds: Space Tech, AI Infrastruc

The Week’s 10 Biggest Funding Rounds: Space Tech, AI Infrastructure Lead Fundraises

The first week of March was a relatively brisk period for large startup funding rounds, led by three deals of $500 million or more in the space tech and AI infrastructure sectors. In addition, we saw some good-sized deals around healthcare, neuroscience and enterprise software.

1. Sierra Space, $550M, space tech: Sierra Space, a space and defense tech company that designs and manufactures satellites, spacecraft and space subsystems, secured $550 million in equity funding led by LuminArx Capital Management. The financing sets an $8 billion valuation for the 5-year-old, Louisville, Colorado-based company.

2. (tied) Ayar Labs, $500M, AI infrastructure: Ayar Labs, a producer of co-packaged optics for use in AI infrastructure, landed $500 million in Series E funding led by Neuberger Berman. The financing sets a $3.75 billion valuation for the 11-year-old, San Jose, California-based company.

2. (tied) Vast, $500M, space tech: Long Beach, California-based Vast, a startup developing next-generation space stations, announced it has raised $500 million in fresh funding. The financing includes $300 million in Series A equity and $200 million in debt, with Balerion Space Ventures as lead investor.

4. Findhelp, $250M, care platform: Findhelp, developer of a platform to coordinate care across health systems, governments, benefits providers and other entities, secured $250 million in investment from TPG’s The Rise Fund. Founded in 2010, Austin-based Findhelp describes its mission as connecting people to help and support systems.

5. Science Corp., $230M, neurotech: Alameda, California-based Science Corp., a biotech startup focused on brain-computer interface technologies, announced it has closed on a $230 million Series C fundraise. Lightspeed Venture Partners, Khosla Ventures, Y Combinator, IQT and Quiet Capital were among the investors participating in the syndicated round.

6. Cart.com, $180M, e-commerce: Cart.com, provider of an e-commerce platform and logistics services for brands to sell across digital channels, picked up $180 million in growth equity investment. Springcoast Partners led the financing for the Houston-based company.

7. Grow Therapy, $150M, mental health care: Grow Therapy, a New York-based platform for providing mental health care, raised $150 million in Series D funding led by TCV and Goldman Sachs Growth Equity.

8. Cognito Therapeutics, $105M, neuroscience: Cambridge, Massachusetts-based Cognito Therapeutics, a developer of therapies for neurodegenerative diseases, secured $105 million in Series C funding. Morningside, IAG Capital Partners and Starbloom Capital led the financing.

9. Nominal, $80M, engineering software: Nominal, a self-described provider of tools for engineers to test and operate critical technology, picked up $80 million in new funding. Founders Fund led the financing, which set a $1 billion valuation for the Austin-based company.

10. Sage, $65M, health software: New York-based Sage, provider of a software platform for senior living and skilled nursing, raised $65 million in Series C funding led by Goldman Sachs Alternatives.

Barron's : The Small-Cap Stock Revival May Just Be Starting. 12 Ideas to Play It

The Small-Cap Stock Revival May Just Be Starting. 12 Ideas to Play It.
Earnings are picking up among small-caps. Consider these under-the-radar stocks and top-notch mutual funds.

Small-company stocks are heating up, and it isn’t just because investors are growing weary of artificial intelligence.

Small-caps have vaulted ahead of the S&P 500 since last October, returning 10% versus a flat performance for the large-cap index. The gains reflect a broad shift out of the tech-heavy S&P 500 as investors look for better values and diversification from Nvidia and the AI trade. But small-caps aren’t just getting a lift from AI-related selling.

More importantly, earnings have recovered after years of declines. According to T. Rowe Price, trailing 12-month earnings for the small-cap S&P 600 index are up nearly 30% since last October, a turnaround after falling for nearly three years. That “represents a meaningful shift” for small-caps and may be a sign that deteriorating fundamentals are finally over, T. Rowe says.

Investors have been buying small-caps on prospects for lower interest rates and fiscal stimulus lifting the U.S. economy. Falling rates favor smaller companies, which tend to have higher financing costs and are more sensitive to rate moves than large-cap and megacap stocks. Interest rates have been declining and may fall more in 2026 if inflation doesn’t rear up, allowing the Federal Reserve to cut by 0.5 percentage points.

Many small-caps are domestically cyclical companies in sectors like industrials and banks. That could be a double-edged sword if the economy falters, a growing risk with energy prices rising due to the war with Iran. Year-to-date earnings estimates for the S&P 600 are down by 1.3% for 2026 profits, notes Chris Senyek, chief investment strategist at Wolfe Research. Conversely, estimates for the S&P 500 are up 1.2%, powered largely by Big Tech.

Small-caps are also highly vulnerable to “risk off” climates for stocks overall, which has been the case lately. Large-caps tend to be considered more sturdy against a backdrop of financial pressures and weakening growth.

While the near term may be choppy, though, the small-cap universe is packed with high-quality growing companies, trading at reasonable valuations. The S&P 600—an index that includes only profitable small companies—trades at 16 times forward earnings, compared with 21 times for the S&P 500.

“Small-caps have been battling this Mag Seven euphoria,” says Steven McBoyle, portfolio co-manager of the Royce Premier fund. “It has been challenging for active small-cap managers such as ourselves. But it’s important to note that investors should not forget the cycles are long and they’re on both sides.”

Small-caps tend to be less widely followed on Wall Street, creating more opportunities to find overlooked stocks. Active managers have a mixed record, but some have consistently found ways to beat the indexes.

To help navigate the sector, we worked with Envestnet and Mercer—consulting firms that vet funds for institutional investors—to help identify strong performers. We then spoke to managers about their top picks.

Here’s a look at their funds and some stocks to consider.

CRM Small/Mid Cap Value / CRIAX
Managing just $150 million in CRM Small/Mid Cap Value fund, co-manager Mimi Morris and her team look for under-the-radar stocks and turnaround stories. “Frankly, we gravitate to areas that are more neglected,” she says.

The fund returned an average 11.8% over the past decade, handily beating its Russell 2500 Value benchmark, which returned an annualized 11%.

One of her picks is BankUnited, one of South Florida’s largest banks, with 55 branches mostly around Miami, Fort Lauderdale, and West Palm Beach. Lower short-term rates are lifting its net interest margins, and the company is growing its loan portfolio while moving mortgages written at ultralow rates in the early 2020s off its books.

BankUnited has a premium location—in one of the nation’s fastest-growing regions. That could make it a takeover target for a larger bank looking to enter South Florida, Morris says. Recent buyouts have been at around 1.7 times book value. BankUnited trades at 1.1 its book value.

Wall Street analysts forecast profit growth of 19% for 2026, to $4.22 a share. Shares trade at 11 times estimated profits and sport a 2.7% dividend yield.

Champion Homes, which sells manufactured and modular homes, should capitalize as home buyers look for more-affordable housing amid relatively high mortgage rates and housing costs.

The average cost of a manufactured home is $84 per square foot, compared with nearly $170 for site-built homes, according to the Manufactured Housing Institute. While the median sale price for U.S. homes is just over $400,000, the typical Champion home sells for about $100,000. Champion also sells high-end products—like its new 1,600-square-foot, three-bedroom “Emerald” model, which goes for $185,000.

Champion should benefit from housing affordability initiatives in Washington, D.C., such as zoning reform and attempts to streamline the industry’s oversight by the Department of Housing and Urban Development. One key bipartisan measure would remove a 50-year-old rule requiring manufactured homes to include a steel chassis that adds $5,000 to $10,000 to costs, a huge potential win for Champion.

Wall Street doesn’t see much earnings growth this year, but analysts expect a 12% increase in 2027 to $4.18 a share. The stock isn’t notably cheap, at 22 times estimated 2027 profits. But Morris thinks Champion is in a prime spot with its premium product lineup and potential for margins to improve as more squeezed home buyers accept trade-offs.

“They are going after the site-built buyer who is priced out,” she says. “They are doing that with a product that looks very different from what you think of as manufactured housing.”

Royce Premier / RPFIX
Run by McBoyle and his team, Royce Premier looks for companies with strong balance sheets and highly defensible businesses, preferring duopolies or oligopolies.

The fund tends to avoid highly regulated industries and companies that borrow heavily, which means few banks and utilities, and a big helping of industrials. The stance is working well; the fund is up 13.4% year to date. Long-term returns are an annualized 12.3% for the past 10 years, beating the Russell 2000’s 10.5%.


One of the fund’s classic hard-hat holdings is welding-equipment maker ESAB, which was spun off from Enovis in 2022. The company has just two other major competitors globally (Lincoln Electric Holdings and Illinois Tool Works), giving it some pricing protection. The business environment is slowly picking up, too. After 10 months of contraction, the U.S. manufacturing sector expanded in January and February, a shift that should give ESAB and other industrial cyclicals a lift, according to J.P. Morgan analysts.

Sales are expected to rise 8% this year and 5% in 2027, hitting $3 billion. McBoyle expects profits to grow faster thanks to a recent focus on higher-margin equipment like welders, over lower-margin consumables such as wires and electrodes that get used up in the welding process.

ESAB’s recent $1.5 billion acquisition of Eddyfi Technologies, a firm that sells machines to inspect aerospace, defense, and nuclear equipment, should boost growth and margins. While Wall Street expects earnings growth of 10% in 2026, McBoyle thinks that ESAB’s growth can hit midteens in the next few years, as U.S. and global infrastructure spending for things like transportation and energy projects rises steadily.

Shares trade around 20 times estimated 2026 profits of $5.82 a share, in line with the market. The stock goes for 18 times 2027 estimates of $6.48, according to consensus forecasts.

Based in Toronto, FirstService is one of North America’s largest property managers, servicing thousands of condos and apartments across the U.S. and Canada. The company also offers light repair and upgrades, and roofing work through brands like California Closets, CertaPro Painters, and Roofing Corp. of America.

First Services’ market share is less than 10% in both of its major business lines, notes McBoyle. In a highly fragmented industry, it’s one of the few players with a national network, giving it a moat against hundreds of mom-and-pop operations. “They often get the first call from insurance carriers after a large storm,” he says.

The stock has struggled in the past year, down about 16% in part because of a slowdown in its roofing business, which relies on commercial construction projects. Many of them were put on hold amid an uncertain macro environment. McBoyle sees that as a temporary problem. The company has a solid roofing backlog, and the unit represents only 12% of overall revenue.

In the property management unit, which constitutes about 40% of revenue and profits, he thinks annual growth can hit 10%, factoring in acquisitions. That stock, at about $153, trades at 25 times earnings based on 2026 forecasts. McBoyle sees it getting back to last year’s high of about $210 over the next year.

Kennedy Capital Small Cap Value / KVALX
The $73.2 million Kennedy Capital Small Cap Value punches above its weight. Its small size may be due to its relatively short track record, having launched in April 2022. Since then, it has posted an average annualized gain of 11.7%, compared with 9.4% for the Russell 2000 Value index.

Kennedy Capital Management’s chief investment officer, Frank Latuda, says he looks for inexpensive companies that efficiently turn invested capital into strong cash flows, often by reinvesting in their businesses or through acquisitions.

One pick is AZZ, a company that treats industrial metals like steel and aluminum to help protect against corrosion. Along with seeing steady industrial demand, the company is a pick-and-shovel play on the data-center and reshoring boom. Shares are up 37% in the past year.

AZZ has a large geographic network of facilities throughout the Midwest and South. Metal is heavy and costly to transport, so having a network of facilities near major construction sites is a big edge that competitors can’t easily replicate, Latuda says.

Also positive: Margins are likely to keep growing. Operating margins are now 15%, up from 10% in 2020. With a new $110 million facility opening in Washington, Mo., and customer demand picking up, those margins should continue to rise, says Latuda. “There is a lot of operating leverage,” he adds, noting that its steel-galvanizing facilities can ramp up volumes at relatively little extra cost.


Wall Street forecasts low-double digit growth in 2026 and 2027, with earnings per share rising from $6.68 to $7.36. At about 19 times 2026 estimates, the stock isn’t pricey for that kind of growth, Latuda says.

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Patrick Industries sells fixtures, sidewalls, windshields, and other non-engine parts for recreational vehicles, boats, and outdoor vehicles, as well as building supplies. It has grown rapidly by rolling up small manufacturers, such as Elkhart Composites, a maker of RV panels, and Medallion Instrumentation Systems, which produces digital controls and lighting for boats. The company’s portfolio now spans more than 80 brand-name products.

RVs, which account for just under half of total sales, are going from a drag on growth to a driver. Recent RV dealer inventories suggest that the market has bottomed. Patrick forecasts RV wholesale shipments to grow by low- to mid-single digits in 2026.

The gains should help lift profitability. The company recently hiked its 2026 operating margin forecast to 7.9% from 7% in 2025, Latuda notes. “They’ve been able to manage margins during a pretty significant downturn in the industry,” he says. “Now, as customers appear to be stabilizing, it sets Patrick up to benefit from that.”

Despite a 36% gain in the past year, the stock trades at 23 times 2026 earnings, a reasonable multiple relative to its growth rate. Wall Street forecasts roughly 20% profit growth in 2026 and 2027, with earnings per share of $5.40 to $6.42.

FullerThaler Behavioral Small-Cap Equity/ FTHSX
FullerThaler Asset Management leans on behavioral economic research from Nobel Prize winners Richard Thaler and Daniel Kahneman to find overlooked stocks. In practice, that often means zeroing in on stocks where investors have overreacted to news or missed signals like insider buying or share repurchases that telegraph investor confidence.

The $11 billion FullerThaler Behavioral Small-Cap Equity returned 14.9% over the past decade, compared with 10.4% for the Russell 2000. While that fund is closed to new investors, the firm’s Behavioral Unconstrained Equity fund boasts a similarly strong track record and is still open.

One top pick: Allison Transmission Holdings, the world’s largest maker of automatic transmissions for commercial trucks and other heavy-duty vehicles, from school buses to tanks. The company dominates the market, with more than 50% market share in certain niches, such as Class 8 trucks—a group that includes construction and dump trucks, notes FullerThaler portfolio manager Raymond Lin.

Sales fell 7% last year as trade worries ate into global commercial trucking volumes. It’s a big reason Allison trades at just 14 earnings, despite analysts forecasting 25% profit growth for 2026.

The company has plenty of attractive prospects. Sales at its defense unit surged 26% last year. In January, the company closed a $2.6 billion deal for a components business for vehicles in industries like construction and mining. Allison has said the new unit will boost 2026 earnings, even after factoring in one-time integration costs of about $70 million.

One positive for the stock: rising buybacks and insider purchases, notes Lin. The company has steadily repurchased shares, reducing its share count by 6% in the past two years. InAugust, as the stock hit lows of $89, Chief Operating Officer Frederick Bohley bought $270,000 worth of shares, a big vote of convenience. “He stepped up,” says Lin.

Primoris Services has been on a tear as an AI/data-center stock. The company builds and maintains energy infrastructure like power plants, solar farms, and transmission lines—all areas in hot demand for data-center power. Shares rose 62% last year after a 130% gain in 2024. The stock is up another 19% so far this year.

Only about 10% of the company’s revenue is tied to data centers, but FullerThaler regards it as a significant growth opportunity.

AI is just one factor driving the huge uptrend in electricity usage. Primoris CEO Koti Vadlamudi suggested on the company’s February earnings call that capital expenditure by its largest utility customers should increase 50% in the coming five years.

Projects are piling up. The company, which generated $7.6 billion in 2025 revenue, finished the year with a backlog of $11.9 billion, including $3 billion of work booked in the fourth quarter.

Primoris no secret. Wall Street expects earnings to grow 5% in 2026 and 15% in 2027. With its share price on such a tear, Primoris’ price/earnings ratio has climbed from about 16 to just under 25.

Still, FullerThaler research director Raife Giovinazzo thinks the stock can keep rising. The company has a long record of beating Wall Street’s quarterly forecasts; he counts 12 in a row. That has led to a sense of complacency among investors, he argues, with the stock falling on better-than-expected results in recent quarters. “This is a company that continues to surprise—and we think people continue to underreact,” he says.

Corrections & Amplifications: The Kennedy Capital Small Cap Value fund has $73.2 million in assets. An earlier version of this article incorrectly gave the figure as $149 million. Steven McBoyle is the portfolio co-manager of the Royce Premier fund. An earlier version of this article incorrectly referred to him as McBride in a subsequent reference.

Barron's : Lockheed and 5 More Defense Stocks With Strong Prospects—Whether Ther

Lockheed and 5 More Defense Stocks With Strong Prospects—Whether There’s War or Peace
It’s a dangerous world—as recent events in the Middle East demonstrate. These key defense companies stand to gain.

The iShares U.S. Aerospace & Defense exchange-traded fund has gained 12% this year after a 47% gain in 2025, benefiting from expectations of a more dangerous world. Anticipation of a war in Iran accelerated those gains, but now investors are starting to worry about what comes next—peace.

But even when the Iran conflict ends, key trends benefiting weapons makers remain in place. Geopolitical tensions will remain high, prompting record spending on national defense by governments around the world. And warfare is changing with lower-cost artificial-intelligence-trained drones growing in importance over traditional technologies, such as manned fighter jets, which cost tens of millions of dollars to build and maintain.

Those trends have manifested in new ways, such as the Department of Defense’s willingness to invest directly in the sector and its recent battle with AI start-up Anthropic. Despite the sometimes messy crosscurrents, trends boil down to higher sales and earnings growth for defense stocks—investors’ favorite tailwinds.

Wall Street now forecasts roughly 8% annual earnings growth on 6% sales growth for large U.S. defense contractors over the coming few years, up from essentially no earnings growth and 5% sales growth over the prior few years. For international defense stocks, earnings are expected to grow 20% annually on double-digit sales growth, up from about 10% earnings growth and 7% sales in recent years. And in a more dangerous world, those numbers are likely to continue to rise.

Here are six stocks poised to benefit.


BAE Systems (BAESY): The war in Iran is an international affair, and Britain’s BAE Systems, a maker of fighter jets, drones, munitions, and naval systems, is a key global defense player. It’s also a big supplier on Lockheed Martin’s F-35 program.

Vertical Research Partners analyst Rob Stallard, who has a $132 price target on the stock, calls it a top defense pick. The company ended 2025 with a record backlog of some $110 billion. Sales in 2025 amounted to about $33 billion, while Wall Street expects double-digit sales growth over the coming years.


Curtiss-Wright (CW): President Donald Trump wants to boost the defense budget—and Curtiss-Wright, a supplier of defense electronics, aerospace parts, naval technologies, and nuclear power components, should be one of the biggest beneficiaries.

Trump has suggested a $1.5 trillion budget for fiscal year 2027, up from about $1 trillion in 2026. A 50% increase in one year isn’t likely, but spending numbers are going up. And that means Curtiss-Wright’s profits should, too. “The company is still only at the beginning of its earnings growth journey,” writes Deutsche Bank analyst Scott Deuschle, who has a Buy rating on the stock.


Lockheed Martin (LMT): Lockheed has become a victim of its own success. Its fifth-generation F-35 fighter jet is used by more than a dozen countries and accounts for some 25% of Lockheed’s annual revenue. That revenue could be at risk if autonomous drone technologies replaced manned fighters.

The value of manned fighter jets, however, has been on display in Iran, with thousands of missions establishing air dominance. And Lockheed makes Patriot missiles, which will need to be restocked.

Lockheed stock has underperformed its peers over the past 12 months and now trades for almost 22 times estimated 2026 earnings. Shares could soon take wing.


Karman Holdings (KRMN): Drones are the future of war, and Karman is a near-perfect play. It supplies solid rocket motors for missiles, drone parts, and protective shrouds for satellites launched into space. In February, it agreed to acquire Seemann Composites and Materials Sciences, which makes sea-based drone technology.

Shares trade for about 140 times estimated 2026 earnings after gaining 205% over the past year. Earnings, however, are expected to grow by 50% annually for the coming three years while sales double. If Karman can meet—and beat—those targets, expect the stock to keep working.


Kratos Defense & Security Solutions (KTOS): The U.S. needs more drones and counter-drone tech—and that’s where Kratos comes in. It makes Valkyrie, which will one day fly beside manned fighter jets, as well as strike drones, propulsion, and counter-drone solutions.

Shares aren’t cheap—they trade for about 104 times estimated 2026 earnings—but profits are expected to grow by about 40% a year for the next few years. About three-quarters of Wall Street analysts covering the stock rate shares Buy, and the average analyst price target is almost $120, up 40% from recent levels.


RTX (RTX): RTX is a primary missile system supplier to the U.S. military, recently agreeing with the Department of Defense to increase production of interceptors, advanced medium-range air-to-air missiles, and Tomahawk cruise missiles. Its interceptor products are protecting U.S. naval and other assets, while hundreds of tomahawks have struck Iranian targets.

Citi analyst John Godyn calls RTX a “marquee megatrend stock,” benefiting from higher military spending and strong demand for commercial air travel. Airbus and Boeing’s backlog stretches for years, ensuring strong demand for years to come.

WSJ : How the OpenAI-Anthropic Feud Could Warp the Future of AI

How the OpenAI-Anthropic Feud Could Warp the Future of AI
Fractured relationship between Dario Amodei and Sam Altman will color debate around how artificial intelligence should develop

The last time Sam Altman and Dario Amodei stood on stage together, they awkwardly tried to avoid physical contact even as other tech leaders held hands aloft for a group photo with India’s prime minister.

They looked like pouting kids on the playground—not the CEOs of OpenAI and Anthropic, two of the hottest names in the AI scene. To many, the odd exchange was the physical manifestation of the growing rivalry between the companies. Both have been eyeing going public this year and, in doing so, are fighting each other for users, talent and investor dollars.

That dust-up was a couple of weeks ago. Things have only grown more heated as the men and their companies have tried to claim the moral high ground in conflicting dealings with the Pentagon.


American business and Silicon Valley, in particular, are littered with classic beefs fueled by ambition, greed and green-eyed jealousy: the late Steve Jobs vs. Bill Gates; Apple vs. Samsung; Uber vs. Lyft. Then there’s Elon Musk vs., well, everyone—Jeff Bezos, Mark Zuckerberg, even Altman.

Arguably such spirited rivalries can be good for consumers in the long run. Each side is trying to outinnovate, outprice, outcompete the other. But the OpenAI-Anthropic feud carries a unique risk with the fate of the still-nascent AI technology resting in just a few powerful hands.

The toxic turn between OpenAI and Anthropic fuels distrust and threatens to further rupture consensus around still-evolving safety practices. It will color public debate around how the technology should be used and influenced.

Heightened tensions exploded into view in recent days as each company tried to navigate its own relationship with the Pentagon and its demands for control over AI. The messy dance saw Anthropic lose its business with the government while OpenAI gained new ground. The raw bitterness displayed between the rivals underscores the challenge the companies will have working together.

“This is not the last time we will see state interference into frontier AI, and until we build formalized structures for such interference it will be important for the industry to hang tough together,” Dean Ball, a former Trump administration AI adviser, posted on X. “I fear that will be less likely now.”

Anthropic was famously born in 2021 out of safety concerns that Amodei—then OpenAI’s vice president of research—had about his employer’s approach to AI.

Whereas Altman can be seen as a wheeler-dealer, racing to cut big deals to grow fast, Amodei staked out a comparably measured position—almost academic or, some might say, zealous. He is known for voicing concerns around the potential dark side of the power he is developing, warning of Great Depression-like job losses.

To be fair, Altman, too, voices concerns, but in an almost gee-whiz wonderment that leaves no doubt he’s on the side of the robot.

Not surprisingly, the two have been on opposite sides of policy debates around regulation. For example, in California, Anthropic backed a first-of-its kind law aimed at providing some sort of guardrails. The measure was widely decried by many in tech, who warned it would unleash patchwork regulation that would stymie AI development.

As this year began and it became clear both companies were thinking about IPOs, Amodei started taking some veiled shots at OpenAI. This appeared to be an effort to draw a finer line between the two.

Amodei, in January at Davos, essentially questioned the ethics of AI companies run by leaders who came out of social media. That was an unnamed swipe at Altman, who dropped out of Stanford University to co-found a social-network startup and later became a big backer of Reddit.

In early February, Anthropic launched a marketing campaign, including Super Bowl commercials, which took aim at OpenAI’s plans, without specifically naming the company, to bring ads to its chatbot.

Altman responded that the ads were dishonest. “I guess it’s on brand for Anthropic doublespeak to use a deceptive ad to critique theoretical deceptive ads that aren’t real,” Altman posted on X.

It felt as if the smaller Anthropic was on the ascent, threatening to outshine OpenAI.

By month’s end, the stakes between the companies had grown even bigger when Amodei rejected Pentagon efforts to get Anthropic to throw out its redlines on using its technology for mass domestic surveillance and fully autonomous weapons.

The principled stand threw Anthropic’s business into jeopardy. The federal government not only banned its use, but Defense Secretary Pete Hegseth labeled the company a supply-chain risk. Such a designation threatens Anthropic’s ability to transact with companies doing business with the U.S. government.

Then Altman swooped in to cut his own deal with the Pentagon about the same time he went public in apparent support of Anthropic’s position. While Altman characterized his arrangement as safeguarding OpenAI’s own similar redlines, the move was seen as, at best, opportunistic.

In the wake of that, Amodei dashed off an emotional note to his staff that took aim at OpenAI and its claims (“the mendacious nature of it” as he began in the message reported by The Information, the tech publication).

“Mendacious” is a five-dollar word for lying.

“We haven’t given dictator-style praise to Trump (while Sam has),” Amodei continued. “We have supported AI regulation which is against their agenda, we’ve told the truth about a number of AI policy issues (like job displacement), and we’ve actually held our red lines with integrity rather than colluding with them to produce ‘safety theater’ for the benefit of employees….”

After the message became public this past week, Amodei apologized for the memo’s tone and said his thinking had changed.

Unsurprisingly, the unvarnished thoughts couldn’t be put back into the bottle. In return, Altman took his own swipe at his rival in a public setting. “The government is supposed to be more powerful than private companies,” he said at a Morgan Stanley conference Thursday.

The irony is that the two men can often sound similar when they talk about AI—its rapid acceleration and game-changing future. Both agree something big is coming. Soon.

Following the blowup with the Pentagon, Amodei told CBS News that Congress should weigh in on how AI could be used for mass surveillance in ways that he suggested haven’t caught up with current laws. Similarly, on Thursday, Altman said elected officials should determine how AI is used in national defense.

Still, it’s hard to imagine the two lobbying hand in hand soon.

WSJ : How the OpenAI-Anthropic Feud Could Warp the Future of AI

How the OpenAI-Anthropic Feud Could Warp the Future of AI
Fractured relationship between Dario Amodei and Sam Altman will color debate around how artificial intelligence should develop

The last time Sam Altman and Dario Amodei stood on stage together, they awkwardly tried to avoid physical contact even as other tech leaders held hands aloft for a group photo with India’s prime minister.

They looked like pouting kids on the playground—not the CEOs of OpenAI and Anthropic, two of the hottest names in the AI scene. To many, the odd exchange was the physical manifestation of the growing rivalry between the companies. Both have been eyeing going public this year and, in doing so, are fighting each other for users, talent and investor dollars.

That dust-up was a couple of weeks ago. Things have only grown more heated as the men and their companies have tried to claim the moral high ground in conflicting dealings with the Pentagon.


American business and Silicon Valley, in particular, are littered with classic beefs fueled by ambition, greed and green-eyed jealousy: the late Steve Jobs vs. Bill Gates; Apple vs. Samsung; Uber vs. Lyft. Then there’s Elon Musk vs., well, everyone—Jeff Bezos, Mark Zuckerberg, even Altman.

Arguably such spirited rivalries can be good for consumers in the long run. Each side is trying to outinnovate, outprice, outcompete the other. But the OpenAI-Anthropic feud carries a unique risk with the fate of the still-nascent AI technology resting in just a few powerful hands.

The toxic turn between OpenAI and Anthropic fuels distrust and threatens to further rupture consensus around still-evolving safety practices. It will color public debate around how the technology should be used and influenced.

Heightened tensions exploded into view in recent days as each company tried to navigate its own relationship with the Pentagon and its demands for control over AI. The messy dance saw Anthropic lose its business with the government while OpenAI gained new ground. The raw bitterness displayed between the rivals underscores the challenge the companies will have working together.

“This is not the last time we will see state interference into frontier AI, and until we build formalized structures for such interference it will be important for the industry to hang tough together,” Dean Ball, a former Trump administration AI adviser, posted on X. “I fear that will be less likely now.”

Anthropic was famously born in 2021 out of safety concerns that Amodei—then OpenAI’s vice president of research—had about his employer’s approach to AI.

Whereas Altman can be seen as a wheeler-dealer, racing to cut big deals to grow fast, Amodei staked out a comparably measured position—almost academic or, some might say, zealous. He is known for voicing concerns around the potential dark side of the power he is developing, warning of Great Depression-like job losses.

To be fair, Altman, too, voices concerns, but in an almost gee-whiz wonderment that leaves no doubt he’s on the side of the robot.

Not surprisingly, the two have been on opposite sides of policy debates around regulation. For example, in California, Anthropic backed a first-of-its kind law aimed at providing some sort of guardrails. The measure was widely decried by many in tech, who warned it would unleash patchwork regulation that would stymie AI development.

As this year began and it became clear both companies were thinking about IPOs, Amodei started taking some veiled shots at OpenAI. This appeared to be an effort to draw a finer line between the two.

Amodei, in January at Davos, essentially questioned the ethics of AI companies run by leaders who came out of social media. That was an unnamed swipe at Altman, who dropped out of Stanford University to co-found a social-network startup and later became a big backer of Reddit.

In early February, Anthropic launched a marketing campaign, including Super Bowl commercials, which took aim at OpenAI’s plans, without specifically naming the company, to bring ads to its chatbot.

Altman responded that the ads were dishonest. “I guess it’s on brand for Anthropic doublespeak to use a deceptive ad to critique theoretical deceptive ads that aren’t real,” Altman posted on X.

It felt as if the smaller Anthropic was on the ascent, threatening to outshine OpenAI.

By month’s end, the stakes between the companies had grown even bigger when Amodei rejected Pentagon efforts to get Anthropic to throw out its redlines on using its technology for mass domestic surveillance and fully autonomous weapons.

The principled stand threw Anthropic’s business into jeopardy. The federal government not only banned its use, but Defense Secretary Pete Hegseth labeled the company a supply-chain risk. Such a designation threatens Anthropic’s ability to transact with companies doing business with the U.S. government.

Then Altman swooped in to cut his own deal with the Pentagon about the same time he went public in apparent support of Anthropic’s position. While Altman characterized his arrangement as safeguarding OpenAI’s own similar redlines, the move was seen as, at best, opportunistic.

In the wake of that, Amodei dashed off an emotional note to his staff that took aim at OpenAI and its claims (“the mendacious nature of it” as he began in the message reported by The Information, the tech publication).

“Mendacious” is a five-dollar word for lying.

“We haven’t given dictator-style praise to Trump (while Sam has),” Amodei continued. “We have supported AI regulation which is against their agenda, we’ve told the truth about a number of AI policy issues (like job displacement), and we’ve actually held our red lines with integrity rather than colluding with them to produce ‘safety theater’ for the benefit of employees….”

After the message became public this past week, Amodei apologized for the memo’s tone and said his thinking had changed.

Unsurprisingly, the unvarnished thoughts couldn’t be put back into the bottle. In return, Altman took his own swipe at his rival in a public setting. “The government is supposed to be more powerful than private companies,” he said at a Morgan Stanley conference Thursday.

The irony is that the two men can often sound similar when they talk about AI—its rapid acceleration and game-changing future. Both agree something big is coming. Soon.

Following the blowup with the Pentagon, Amodei told CBS News that Congress should weigh in on how AI could be used for mass surveillance in ways that he suggested haven’t caught up with current laws. Similarly, on Thursday, Altman said elected officials should determine how AI is used in national defense.

Still, it’s hard to imagine the two lobbying hand in hand soon.