The Pentagon designated Anthropic a supply-chain risk after the two sides failed to agree on military control over AI models, including use in autonomous weapons and mass surveillance. Anthropic's $200M contract collapsed, and the DoD pivoted to OpenAI, which accepted the deal but saw ChatGPT uninstalls spike 295%. The TechCrunch Equity podcast breaks down what startups should understand before chasing federal AI contracts, alongside other major tech stories including Anduril's $60B valuation, the Paramount-Warner Bros. streaming merger, and the so-called 'SaaSpocalypse'.

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