Hello. The Pentagon wants to be able to use Anthropic and other artificial-intelligence tools for all lawful uses. However, Anthropic doesn’t want its technology used for operations including domestic surveillance.

Rivals OpenAI, Google and xAI have agreed in principle to have their models deployed in any lawful use cases, a key Pentagon priority, Emil Michael, the undersecretary of war for research and engineering, said. Anthropic hasn’t. Read more from WSJ. 

Also today: 

• Microsoft Copilot AI got into confidential emails
• Asahi business-partner data exposed in cyberattack
• Social-engineering attack compromised data of nearly 1 million customers of financial firm Figure
• Palo Alto Networks says acquisition costs will eat into profits 

Microsoft's Copilot AI has been summarizing sensitive emails due to a coding bug, the company said. Copilot ignored "confidential" labels and data-loss prevention policies. Microsoft said it has started to provide fixes to customers and continues to investigate the scope of the problem. (Bleeping Computer)

Japanese brewer Asahi Group said Wednesday that about 110,000 records were breached in a September cyberattack. The exposed data includes personal information about executives and employees of business partners. (Kyodo News)

• Further reading from WSJ: Asahi Takes Earnings Hit After Cyberattack, Flags Potential Data Leak

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.