Claude fails miserably...

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CLAUDE RAN ITS OWN STORE (AND FAILED MISERABLY) 📉 

Should we be happy or sad about AI’s shortcomings? 🧐

What happened? Anthropic let its AI model Claude Sonnet 3.7 autonomously manage a mini vending business in their San Francisco office—and things got weird.

How did it work? Partnering with Andon Labs, Anthropic gave Claude a simple shop setup—a fridge, baskets, and an iPad checkout—and a complex goal: run it like a profitable small business. Claude chose inventory, changed prices, responded to customer Slack messages, and even launched a “Concierge” pre-order service. But it also made odd decisions: selling at a loss, hallucinating bank accounts, offering unjustified discounts, and—at one point—believing it was a real person in a blazer.

Why does this matter? This strange but telling experiment shows that AI might soon handle real-world business tasks, but it also highlights how easily today’s models can go off course. While Claude wasn’t ready for management, with better tools and safeguards, AI middle-managers could be just around the corner.

NAVY SHIPBUILDER BOOSTS PRODUCTION WITH AI 🚢

Q: What do you do with a sick boat?

A: Take it to the doc. ⚓️

What’s up? Navy shipbuilder HII has partnered with C3 AI to implement AI across its major shipyards to boost productivity and streamline operations.

How does it work? Following a successful six-month pilot program at HII’s Ingalls Shipbuilding yard, the company is scaling up its use of C3 AI’s enterprise software to both of its major facilities. Specifically, the AI looks at how different machine shops handle tasks, then automatically adjusts schedules based on shifting priorities, parts availability, and labor constraints. Instead of relying on manual coordination—spreadsheets and meetings—the system dynamically updates work orders to make sure the right materials and teams are in place at the right time. This minimizes downtime, reduces bottlenecks, and improves the overall pace of shipbuilding. HII will now apply this AI-powered system to its Newport News and Ingalls shipyards.

Why should you care? This move could significantly accelerate the construction of U.S. Navy vessels, with HII aiming for a 20% increase in throughput by 2025. It’s a prime example of how AI isn’t just for tech firms—it’s reshaping traditional industries like shipbuilding in very real, practical ways.

TOP CHINESE MODEL GETS OPEN SOURCED 👀

Where’s Bert? 😆

What’s going on? Chinese tech giant Baidu has announced it will open source its Ernie generative AI model starting this week.

Want the details? Once opposed to open source, Baidu is now releasing its powerful AI system to the public in a gradual rollout—giving developers worldwide free access to tools that rival top models from U.S. companies like OpenAI and Anthropic. Experts say this move could cut costs dramatically, increase customization, and accelerate global AI development. While some remain skeptical of Chinese models, others argue Baidu’s Ernie could be as disruptive as DeepSeek was earlier this year.

TWITTER (X) TUESDAY 🐦

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