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

Loading the player… <p class="wp-block-paragraph">The Pentagon has officially <a href="https://techcrunch.com/2026/03/05/its-official-the-pentagon-has-labeled-anthropic-a-supply-chain-risk/" target="_blank" rel="noreferrer noopener">designated Anthropic a supply-chain risk</a> 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 <a href="https://techcrunch.com/2026/03/02/chatgpt-uninstalls-surged-by-295-after-dod-deal/" target="_blank" rel="noreferrer noopener">ChatGPT uninstalls surge 295%</a>. As the stakes keep rising, the question remains: how much unrestricted access should the military have to an AI model? </p>
<p class="wp-block-paragraph">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 <a href="https://techcrunch.com/2026/03/02/paramount-and-hbo-max-to-merge-into-one-streaming-service-after-wbd-deal-closes/">Paramount’s Warner Bros. deal</a> and MyFitnessPal’s <a href="https://techcrunch.com/2026/03/02/myfitnesspal-has-acquired-cal-ai-the-viral-calorie-app-built-by-teens/">Cal AI acquisition</a> to <a href="https://techcrunch.com/2026/03/03/activist-investor-elliot-takes-a-1b-stake-in-pinterest-betting-on-ai-driven-growth/">Pinterest’s $1B AI push</a>, <a href="https://techcrunch.com/2026/03/03/anduril-aims-at-60-billion-valuation-in-new-funding-round/">Anduril’s $60B valuation</a>, and whether the “<a href="https://techcrunch.com/2026/03/01/saas-in-saas-out-heres-whats-driving-the-saaspocalypse/">SaaSpocalypse</a>” is real.</p>
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