Good morning. If you thought the tale of the Pentagon’s controversial AI deal had reached its end, this morning’s newsletter will gently disabuse you of that notion, and bring you up to speed on all the latest developments in that drama.

With all the focus on AI and war, it’s hard to believe that just one week ago the markets were obsessed with the SaaS-pocalypse. But don’t mistake quiet on the Saas front with resolution. Another blog post or earnings call could quickly ignite another round of tech market volatility. Today’s tech news below.

Alexei Oreskovic@lexnfxalexei.oreskovic@fortune.com

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OpenAI and Sam Altman go into damage control mode