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AI & TECH

Pentagon blacklists AI labs refusing autonomous weapons work

Thursday, May 7, 2026 · from 3 podcasts
  • The Pentagon blacklisted Anthropic as a supply chain risk after it banned military use.
  • Silicon Valley firms like Palantir and Anduril are racing to fill the gap with AI-powered weapons.
  • One analyst argues this push for algorithmic speed is failing to deliver actual strategic victory.

The Department of War issued a blunt ultimatum to the AI industry: work with the military or get cut off. When Anthropic stipulated its models could not be used for autonomous weapons or mass surveillance, Secretary Pete Hegseth responded by blacklisting the company as a supply chain risk. The move signals that safety restrictions are now viewed as a direct threat to national security readiness.

"When the AI startup Anthropic stipulated that its models could not be used for autonomous weapons or mass surveillance, Secretary of War Pete Hegseth responded by blacklisting the company."

- Henry Trix, The Intelligence from The Economist

Other Silicon Valley players are leaning into the military demand. Palantir is already using Anthropic’s Claude models for classified work despite the lab’s public stance. SpaceX acquired Elon Musk’s xAI specifically to handle Pentagon contracts. Anduril secured a consolidated Army deal worth up to $20 billion over a decade. Venture capital is pouring into these 'neoprimes,' betting future budgets will prioritize autonomous systems over legacy hardware.

David Sacks argued on The Conversation that this shift is necessary. He framed the global AI race as an infinite game for market share and soft power, advocating a 'permissionless innovation' stance to keep the U.S. ahead. He dismissed the Anthropic-Pentagon dispute as unrealistic, stating a company cannot sell to the Department of Defense and then attempt to veto its lawful chain of command.

Yet evidence from the war in Iran suggests this push for algorithmic speed is producing grim results. Robert Evans on Behind the Bastards cited Project Maven, a system designed for 1,000 targeting decisions per hour. Human operators get 72 seconds to vet each strike. During Operation Epic Fury, this led to a strike on the Monob Girls Elementary School that killed 156 people. Evans argues the AI is efficient at hitting buildings but incapable of judging strategic value.

"During Operation Epic Fury, this algorithmic speed led the U.S. and Israel to strike the Monob Girls Elementary School, killing 156 people."

- Robert Evans, Behind the Bastards

The political landscape adds friction. The Intelligence noted the Trump administration is stacked with 'Silicon Valley types' who have personal stakes in these firms. Donald Trump Jr. is a venture partner at a firm invested in Anduril. The President publicly defended Palantir against short-sellers. This cozy relationship risks turning historically bipartisan defense procurement into a partisan wedge, threatening the funding stability these neoprimes rely on.

The rift is now structural. One side views building AI for the military as a patriotic duty to win an infinite game. The other sees it as a path to automated errors and ethical blacklisting. The Pentagon’s response makes clear which view currently holds power.

Source Intelligence

- Deep dive into what was said in the episodes

Spoils of war: money flows into defence techMay 4

Also from this episode: (11)

Big Tech (3)

  • Henry Trix outlines the rise of the 'neoprimes' - Palantir, SpaceX, and Anduril - as tech-led defense contractors leveraging software, satellites, and drones to win government contracts by offering cheaper, nimbler weapons.
  • Major contracts for neoprimes include Palantir's Project Maven program-of-record status, Anduril's consolidated army contract potentially worth $20 billion over 10 years, and a Pentagon AI strategy launch at SpaceX.
  • Trix notes the F-35 program led by Lockheed Martin is valued at approximately $1.7 trillion, far exceeding neoprime deals, yet venture capital is pouring into defense tech at record levels on expectations of a changing of the guard.

Politics (4)

  • Political ties risk bipartisanship, as Donald Trump defended Palantir against short sellers and his son is a venture partner at 1789 Capital, which invests in Anduril.
  • President Woodrow Wilson's 1917 call to enter WWI, framing it as a defense of democracy, was followed by the 1920 ratification of the 19th Amendment granting women's suffrage after suffragists highlighted the hypocrisy of his ideals.
  • Roosevelt's administration interned roughly 120,000 Japanese Americans during WWII, two-thirds of whom were US citizens, while black soldiers served in segregated units.
  • The atomic bombs dropped on Hiroshima and Nagasaki killed an estimated 200,000 people by the end of 1945, leading to Japan's surrender on August 15th.

AI & Tech (2)

  • Neoprimes advocate for military AI use, with Palantir using Anthropic models for classified work, Anduril embedding AI in autonomous weapons, and SpaceX acquiring Elon Musk's XAI lab.
  • The Trump administration's Department of War blacklisted Anthropic as a supply chain risk after the AI lab stipulated its models not be used for autonomous weapons or mass surveillance.

Business (1)

  • The Great Depression began with the 1929 Wall Street crash, leading to 25% unemployment by 1933 before Franklin D. Roosevelt introduced the New Deal with bank deposit insurance, jobless relief, and public works projects.

Culture (1)

  • Andrew Palmer advises on workplace emoji etiquette, noting a stand-alone heart emoji can imply a proposal, a thumbs-up may seem frosty to Gen Z, and the tilted tears of joy emoji signals genuine laughter.
The Conversation with Dasha Burns
The Conversation with Dasha Burns

The Conversation with Dasha Burns

David Sacks: Can AI solve the problems it creates?May 2

  • He advocates a 'permissionless innovation' regulatory framework with minimal burdens to keep the U.S. ahead. Sacks says innovation originates in the private sector and the government's role should be encouraging.
  • He identifies specific areas for state-level regulation: online child safety, data center impacts on electricity rates, and creator protections. His 'north star' for child safety is parental empowerment over app usage.
  • The administration supports a 'ratepayer protection pledge' where AI companies building new data centers agree not to increase residential electricity prices, with the quid pro quo being easier permitting if they bring their own power.
  • Sacks is skeptical of holding AI developers broadly liable for end-user actions, comparing it to holding Gmail or Excel responsible for crimes committed using their services. He says it's hard for developers to know all use cases.
  • On the Anthropic-Pentagon dispute, Sacks believes it was unrealistic for the company to demand a veto over lawful military uses after deciding to sell to the Department of War. He says concerns about surveillance loopholes should be addressed by changing laws, not terms of service.
Also from this episode: (10)

AI & Tech (10)

  • Sacks argues the U.S. must win a global AI race against competitors like China to protect national security and the economy, framing it as an 'infinite game' without a finish line.
  • Sacks cites Trump's AI policy pillars: pro-innovation, pro-energy infrastructure to power data centers, and pro-export to gain global market share for American chips and models.
  • He disagrees with Elon Musk's more pessimistic view of AI as an existential threat. Sacks believes the biggest dystopian risk is government using AI for surveillance and control, not a Terminator-like scenario.
  • Sacks views the AI-enhanced cybersecurity arms race as one AI will solve. He argues tools like Anthropic's Mythos will help defenders find and patch vulnerabilities before hackers exploit them, reaching a new equilibrium.
  • He points to a Stanford study showing a stark optimism gap: 83% of Chinese respondents believe AI will be more beneficial than harmful, compared to under 40% of Americans. Sacks calls this the biggest threat to U.S. leadership.
  • Sacks says current data does not support widespread AI-driven job loss. He cites a Yale Budget Lab study finding no discernible labor market disruption in the three years after ChatGPT's launch and the Challenger Gray report attributing less than 5% of 2023 layoffs to AI.
  • He highlights an AI-driven construction boom, with $650 billion in data center capex this year acting as a 2% GDP tailwind and boosting blue-collar wages for electricians and plumbers by 25-30%.
  • Sacks argues AI won't eliminate coding jobs but will shift them toward prompting and supervising models. He notes demand for software engineers rose 10% year-over-year even as AI coding tools proliferated.
  • He claims Anthropic's enterprise revenue from coding tools scaled from about $10 billion to $30 billion between January and March 2024, calling the growth unprecedented.
  • Sacks criticizes well-funded 'doomer' groups and super PACs that want to halt AI progress, alleging they have astroturfed NIMBY backlash against data centers and influenced media discourse.

It Could Happen Here Weekly 230May 2

Also from this episode: (13)

Politics (11)

  • Robert Evans argues that the current political era is dominated by extremophiles, drawing a parallel to organisms that thrive in extreme environments like the Dead Sea.
  • Evans rejects the nostalgic view of the 1990s as a Goldilocks zone, pointing to the Rwandan genocide, US military misadventures in Somalia, domestic terrorism like the Oklahoma City bombing, and the rise of an extremist Republican Party.
  • Moms for Liberty, founded in 2021, initially gained power through school board elections but began losing major races in 2023 in Pennsylvania, Virginia, and Iowa as a backlash against culture war politics grew.
  • A 2026 AP/NORC poll put Trump's overall approval at 33%, down 5% since March, with only 32% approving of his handling of Iran.
  • In Virginia, only 4% of voters listed transgender policies as a top issue in the 2026 governor's race, yet Republicans spent heavily on anti-trans attack ads, which failed to deliver victory.
  • Andrew Sage details the 2011 NATO intervention in Libya, which began on March 19 under UN Resolution 1973, toppling Gaddafi but killing tens of thousands and devastating infrastructure, leading to ongoing civil war.
  • Sage and James condemn the 'anti-imperialism of idiots,' which whitewashes authoritarian leaders like Gaddafi or Assad simply because they are targets of Western aggression.
  • Muammar Gaddafi ruled Libya for 42 years after a 1969 coup. His ideological project, the Jamahiriya or 'state of the masses,' featured People's Congresses but kept real power over oil, military, and security services in his hands.
  • Gaddafi's regime was responsible for severe human rights abuses, including the 1996 Abu Salim prison massacre where approximately 1,200 prisoners were killed.
  • In the 2000s, Gaddafi pursued economic liberalization, privatizing 360 state enterprises and laying off up to 400,000 public sector workers by 2007, policies praised by the IMF.
  • Post-Gaddafi Libya has seen open slave markets where Black African migrants are auctioned, a result of human trafficking and debt bondage exacerbated by the country's collapse.

AI & Tech (1)

  • The logic of AI-driven military escalation, as seen in Project Maven, failed in the US war with Iran. Evans cites the 2026 bombing of the Monob Girls Elementary School, which killed 156 people, as evidence that speed-focused targeting cannot ensure accuracy or strategic victory.

Culture (1)

  • Social media use in the US is declining, with visits and posts on Twitter/X and Facebook falling nearly 50% since 2020, according to a study by University of Amsterdam professor Peter Tornberg.