The US military had a close call when an AI-generated intelligence report incorrectly identified a Chinese ship as carrying nuclear weapons components, leading to plans for an interception operation. The report was later found to be entirely false, and the operation was called off just in time. The incident highlights the risks of relying on AI for targeting and intelligence gathering, particularly in high-stakes situations. The military is rapidly adopting AI for various applications, but the episode underscores the need for caution and rigorous verification of AI-generated information.