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

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

6:20 AM IST · March 7, 2026

Loading the player… The Pentagon has officiallydesignated Anthropic a supply-chain riskafter 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 watchedChatGPT 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, fromParamount’s Warner Bros. dealand MyFitnessPal’sCal AI acquisitiontoPinterest’s $1B AI push,Anduril’s $60B valuation, and whether the “SaaSpocalypse” is real. Subscribe to Equity onYouTube,Apple Podcasts,Overcast,Spotifyand all the casts. You also can follow Equity onXandThreads, at @EquityPod.