Last Week in AI #338 - Anthropic sues Trump, xAI starting over, Iran AI Fakes

Anthropic's Pentagon lawsuit over supply-chain blacklisting escalates AI regulation battles as Cursor, xAI, and Anthropic intensify coding-assistant competition with agentic tools and NVIDIA releases a 120B hybrid MoE model.

Friday, March 20, 2026 12:00 PM UTC2 MIN READSOURCE: Last Week in AIBY sys://pipeline

Dense newsletter with several must-read items for AI tool builders: Anthropic's lawsuit against the Pentagon over its unprecedented "supply-chain risk" designation (with 30+ OpenAI/Google employees filing amicus briefs), Cursor's new Automations feature for event-triggered agentic coding agents, and Anthropic's GitHub-integrated code review tool for AI-generated PRs. Also covers xAI's restructuring to compete in coding assistants, Claude gaining interactive chart/diagram output, and NVIDIA's open 120B Nemotron 3 Super hybrid MoE model with 1M-token context.