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

The Pentagon has officially designated Anthropic a supply-chain risk after the two failed to agree on how much control the military should have over its AI models, including its use in autonomous weapons and mass domestic surveillance. As Anthropic’s $200 million contract fell apart, the DoD turned

TechnologyBy David ParkMarch 6, 20262 min read

Last updated: March 18, 2026, 5:44 AM

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

The Pentagon has officially designated Anthropic a supply-chain risk after the two failed to agree on how much control the military should have over its AI models, including its use in autonomous weapons and mass domestic surveillance. As Anthropic’s $200 million contract fell apart, the DoD turned to OpenAI instead, which accepted and then watched ChatGPT uninstalls surge 295%. As the stakes keep rising, the question remains: how much unrestricted access should the military have to an AI model?

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

acquisition, AI, anduril, Anthropic, Cal AI, ChatGPT, department of defense, Equity Video, OpenAI, SaaS, Startups

Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast. Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband. Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.

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David Park

Technology Editor

David Park covers the tech industry, startups, and digital innovation for the Journal American. Based in Silicon Valley for over a decade, he has tracked the rise of major tech companies and emerging platforms from their earliest stages. He holds a degree in Computer Science from Stanford University.

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