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Pentagon’s A-Team: Risk Management or Cronyism?

Artificial Intelligence Anthropic Claude xAI Grok Gemini Supply Chain Risk Defense Contracts National Security
February 24, 2026
Source: The Verge AI
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Reactive, Not Revolutionary
Media Hype 5/10
Real Impact 6/10

Article Summary

The Pentagon’s recent meetings with Anthropic, involving figures like Cerberus Capital Management’s Steve Feinberg and former Uber executive Emil Michael, have raised questions about the strategic rationale behind the department’s aggressive contracting practices. The presence of individuals with significant experience in private sector risk management and venture capital—particularly given the Biden administration’s focus on supply chain resilience—suggests a proactive approach to mitigating AI-related vulnerabilities. However, the reliance on figures with past controversies—Feinberg’s role in the Chrysler collapse and Michael’s alleged role in perpetuating a toxic workplace culture at Uber—introduces a layer of complexity and potential reputational risk. The rapid shift in AI vendor selection, granting xAI’s Grok access to classified systems despite its limitations, underscores the department’s struggle to balance strategic needs with established procurement protocols. The involvement of these figures points to a possible strategy of leveraging private sector expertise, but simultaneously introduces the risk of prioritizing short-term gains over long-term stability and ethical considerations.

Key Points

  • The Pentagon is aggressively negotiating with Anthropic, seeking to establish a resilient AI supply chain in response to the Biden administration’s national security directives.
  • The attendees, including Steve Feinberg and Emil Michael, bring diverse backgrounds from private equity, venture capital, and corporate leadership, reflecting a deliberate effort to bolster the department’s AI strategy.
  • The recent decision to grant xAI’s Grok access to classified systems, despite its technological limitations, demonstrates a willingness to deviate from established procurement protocols in pursuit of a viable solution.

Why It Matters

This episode highlights a critical tension within the defense industry: the urgent need to address AI-related security vulnerabilities versus the potential for ethical lapses and reputational damage stemming from reliance on individuals with questionable pasts. The Pentagon’s reliance on a ‘private sector A-Team’ reflects a broader trend of leveraging external expertise for complex technological challenges, but the potential for conflicts of interest and the pressure to prioritize expediency over long-term stability represent significant concerns for the AI landscape.

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