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Anthropic's Pentagon Deal Serves as Warning for Startups Seeking Government Contracts

Anthropic's Pentagon Deal Serves as Warning for Startups Seeking Government Contracts

April 18, 2026
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The Pentagon has officially designated Anthropic as a supply-chain risk after the two parties failed to reach an agreement on the extent of military control over its AI models, including their potential use in autonomous weapons and widespread domestic surveillance. Following the collapse of Anthropic's $200 million contract, the Department of Defense turned to OpenAI, which accepted the deal and subsequently witnessed a 295% surge in ChatGPT uninstalls. As the stakes continue to escalate, a fundamental question remains unanswered: how much unrestricted access should the military have to a powerful AI model?

Watch as Equity hosts Kirsten Korosec, Anthony Ha, and Sean O'Kane analyze what startups must consider when pursuing federal AI contracts. They also break down the week's top tech stories, including Paramount's acquisition of Warner Bros., MyFitnessPal's purchase of the teen-developed Cal AI, Pinterest's $1 billion AI investment, Anduril's $60 billion valuation, and the debate over whether the "SaaSpocalypse" is a genuine threat.

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