Anthropic’s Pentagon deal is a cautionary tale for startups chasing federal contracts

The Pentagon has officially designated Anthropic as a supply chain risk after the two failed to agree on how much control the military should have over its AI models, including their use in autonomous weapons and mass domestic surveillance. When Anthropic’s $200 million contract fell apart, the Defense Department turned to OpenAI, which accepted and then watched ChatGPT uninstalls jump 295%. As the stakes continue to rise, the question remains: How much unfettered access should the military have to an AI model?

Watch Equity’s Kirsten Korosec, Anthony Ha, and Sean O’Kane break down what startups need to know about pursuing federal AI contracts, plus the biggest tech stories of the week, from Paramount’s Warner Bros. deal and MyFitnessPal’s Cal AI acquisition to Pinterest’s $1 billion AI push, Anduril’s $60 billion valuation, and whether the “SaaSpocalypse” is real.

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