AP Business SummaryBrief at 12:06 a.m. EST

What to know about the clash between the Pentagon and Anthropic over military’s AI use

WASHINGTON (AP) — A high-stakes dispute over how the U.S. military uses artificial intelligence has led the Pentagon to cancel its contract with rising AI star Anthropic. Defense Secretary Pete Hegseth declared Anthropic a supply chain risk, a step that could jeopardize its business with other defense contractors as well. Anthropic says it plans to challenge the designation in court in a legal battle could have huge implications on the balance of power in Big Tech as well as the guardrails set up to prevent artificial intelligence from being misused.

Greg Abel praises Warren Buffett and promises Berkshire Hathaway won’t retreat from investing

OMAHA, Neb. (AP) — Greg Abel paid tribute to his predecessor Warren Buffett while promising in his first shareholder letter that Berkshire Hathaway won’t retreat from investing or make significant changes in the way it operates. Abel took over as CEO in January. Investors are watching closely for any changes he might make, but Abel reaffirmed Saturday that they should expect any major shifts. Buffett remains chairman and the largest shareholder. Abel is now writing the annual letters that were always known as one of the most-read business reports. No one is expecting him to match Buffett’s wit.

Trump’s Medicaid work mandates are meant to save money. But first states will have to spend millions

JEFFERSON CITY, Mo. (AP) — New Medicaid work requirements signed into law by President Donald Trump are meant to save money. But states first will have to spend millions of dollars to implement them. An Associated Press analysis finds that states are projected to spend over $1 billion on technology improvements and additional staff needed to carry out the requirements. The Medicaid changes were included in Trump’s big tax-cut law passed by Congress last year. States are still waiting on federal rules to provide further guidance. But they face a time crunch because the Medicaid work requirements are supposed to be enforced next January.

From box office bomb to media powerhouse: Skydance’s 20-year rise to overtake Paramount, Warner Bros

NEW YORK (AP) — It’s a come-from-behind story fit for Hollywood itself. Skydance’s unlikely triumph in the battle for Warner Bros. Discovery, sealed with Netflix’s step back, is a win two decades in the making. When Skydance founder David Ellison created the company at the age of 23 two decades ago, it registered little more than a blip in an industry accustomed to rich newcomers trying to gain a place beneath the glow of Hollywood’s lights. Its first feature was a flop. But, slowly and surely, it has churned out successes that have led to its place at the pinnacle of media power.

Oil prices set for swings next week as US-Israel strikes raise supply uncertainty

FRANKFURT, Germany (AP) — Oil traders brace for big moves next week as the fallout from U.S. and Israeli strikes on Middle East oil supply stays unclear. On Friday, Brent crude closes at a seven-month high of $72.87 on war fears. Analysts say prices will calm down if shipping and key sites stay safe. Disruption of Iranian exports could tighten global supply. Iran ships about 1.6 million barrels a day, mostly to China. Another risk is the Strait of Hormuz, which handles about 20% of global oil. Experts say Iran has little reason to close it.

Paramount must convince regulators its deal with Warner will not hurt customers

After months of heated wrangling, Paramount has emerged the apparent victor in its bid to acquire storied Hollywood rival Warner Bros. Discovery. But a bumpy regulatory road lies ahead. Up until Thursday, Netflix had been the favored suitor from Warner’s board and others. But Netflix abruptly dropped out of the running after Paramount upped its rival offer. A Paramount buyout would reshape Hollywood and the wider media landscape. And unlike Netflix, Paramount wants the entire company. A merger of this size is reviewed by the U.S. Justice Department, which could sue to block the transaction or request changes. And other countries and entities could challenge the acquisition, too.

Netflix walks away from Warner Bros deal, clearing the path for Paramount

NEW YORK (AP) — Netflix is declining to raise its offer to buy Warner Bros. Discovery’s studio and streaming business in a stunning move that effectively puts Paramount in a position to take over its storied Hollywood rival. On Thursday, after Warner’s board announced that Skydance-owned Paramount’s offer was superior to the agreement it had previously struck with Netflix, the streaming giant said the new price that would be required to buy Warner would make it a deal that is “no longer financially attractive.” Unlike Netflix’s bid, Paramount wants all of Warner’s operations, including networks like CNN and Discovery. That would put CNN under the same roof as Paramount’s CBS and combine two of Hollywood’s last five remaining studios.

CNN chief prescribes calm after staff anxiety over Paramount’s expected purchase of parent company

Shortly after it became known that Paramount was the apparent victor in the competition to buy CNN’s parent company, network president Mark Thompson was compelled to send his staff a note to calm down, in effect. “I suggest that you don’t jump to conclusions,” he said. But that didn’t stop the leaping: Paramount chief David Ellison had reportedly suggested to President Donald Trump — no big fan of CNN — that he’d make changes at the network. Paramount has controlled CBS News for the past six months, and he installed opinion journalist Bari Weiss as its editor-in-chief, and his moves at CBS are being scrutinized for what they might mean for CNN.

Hundreds of thousands of travelers stranded by flight disruptions after attack on Iran

LONDON (AP) — America and Israel’s attack on Iran disrupted flights across the Middle East and beyond Saturday as countries around the region closed their airspace and three of the key airports that connect Europe, Africa and the West to Asia halted operations. Hundreds of thousands of travelers were either stranded or diverted to other airports after Israel, Qatar, Syria, Iran, Iraq, Kuwait and Bahrain closed their airspace. Flights also stopped over the United Arab Emirates. That led to the closure of key hub airports in Dubai, Abu Dhabi and Doha, and the cancellation of more than 1,800 flights by major Middle Eastern airlines.  Airlines are telling passengers to check status online and may offer waivers to help travelers rebook their flights if needed.

Retail customers file lawsuits over tariffs against FedEx and Ray-Bans maker

NEW YORK (AP) — At least two retail customers have filed proposed class-action lawsuits against companies that have sued in trade court to ensure they receive refunds from tariffs now-deemed illegal. Miami-based Matthew Reiser filed a proposed class-action lawsuit against FedEx and New York-based Nathan Ward made a similar claim against sunglasses maker EssilorLuxottica. The suits seek to ensure that should tariffs be refunded to the companies, they get returned to the customers. The moves follow a rush of more than 1,000 companies that have filed suit in the U.S. Court of International trade over tariff refunds. On Feb. 20, The Supreme Court invalidated tariffs implemented under the International Emergency Economic Powers Act, or IEEPA, worth an estimated $130 billion to $175 billion.