Anthropic vs. the Pentagon, the SaaSpocalypse, and why competition is good, actually

Overview

On this episode of TechCrunch's Equity podcast, hosts discuss the Pentagon designating Anthropic a supply-chain risk after the two failed to agree on how much control the military should have over its AI models. With Anthropic's $200 million contract falling apart, the Department of Defense turned to OpenAI, which then saw ChatGPT uninstalls surge 295%. The episode also covers other startup and tech headlines of the week.

Key Takeaways

The Pentagon designated Anthropic a supply-chain risk after disagreements over military control of its AI models.
The dispute covered use in autonomous weapons and mass domestic surveillance.
Anthropic's $200 million contract fell apart, and the DoD turned to OpenAI instead.
After OpenAI accepted, ChatGPT uninstalls surged 295%.
The episode raises how much unrestricted access the military should have to an AI model.

Stats & Key Facts

#Anthropic's $200 million contract
#ChatGPT uninstalls surged 295%
#Anduril is raising again at a reported $60 billion valuation
#Someone dropped $1 billion on Pinterest's AI mission

The Pentagon's split with Anthropic

The two sides could not agree on control.

›The Pentagon officially designated Anthropic a supply-chain risk.
›The dispute centered on how much control the military should have over Anthropic's AI models.
›Points of contention included use in autonomous weapons and mass domestic surveillance.

Anthropic's $200 million contract fell apart as a result of the failure to agree on terms.

OpenAI steps in

The DoD turned to a different provider.

›The Department of Defense turned to OpenAI after the Anthropic deal collapsed.
›OpenAI accepted the arrangement.
›ChatGPT uninstalls then surged 295%.

The episode frames the central question as how much unrestricted access the military should have to an AI model.

Federal contracts for startups

The hosts weigh the risks of chasing government work.

›The discussion covers what startups should think about when chasing federal contracts.
›It notes that nobody seems to know what to do with AI in Washington.
›The stakes around defense AI keep rising.

Other headlines covered

The episode ranges across the week's news.

›Paramount's deal with Warner Bros and ideas for naming the HBO Max-Paramount+ hybrid.
›MyFitnessPal's acquisition of Cal AI, a calorie-tracking app built by teenagers.
›A $1 billion bet on Pinterest's AI mission, spent on share buybacks.

The hosts also note Anduril is raising again at a reported $60 billion valuation.

The SaaSpocalypse debate

›The episode asks whether companies should brace for the 'SaaSpocalypse.'
›It questions whether the SaaSpocalypse is real or just another chapter of the AI hype cycle.
›The discussion ties into why competition is framed as good.

Frequently Asked Questions

Why did the Pentagon designate Anthropic a supply-chain risk?

After Anthropic and the Pentagon failed to agree on how much control the military should have over its AI models, including use in autonomous weapons and mass domestic surveillance.

What happened to Anthropic's contract?

Its $200 million contract fell apart, and the Department of Defense turned to OpenAI instead.

What happened after OpenAI accepted?

ChatGPT uninstalls surged 295%, according to the episode.

Which podcast covered this?

TechCrunch's Equity podcast, hosted by Kirsten Korosec, Anthony Ha and Sean O'Kane, with Theresa Loconsolo as audio producer.

What valuation is Anduril reportedly raising at?

A reported $60 billion valuation, according to the episode.

The episode uses the Anthropic-Pentagon split to ask how much unrestricted access the military should have to AI models.