This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOG) and NVIDIA (NASDAQ:NVDA) are getting pulled further into defense work, as the Pentagon brings in a group of major tech companies to run AI tools in classified environments.
The Department of Defense has signed agreements with players like OpenAI, Google, Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) Web Services, Nvidia, SpaceX, and Reflection AI. The idea is to use their models across highly secure systems for things like intelligence, operations, and internal workflows. Adoption is already moving fast, with the Pentagon saying more than 1.3 million personnel are using its AI platform.
What’s interesting is how the Pentagon is approaching this. It’s not relying on just one partner. Instead, it’s working with several companies at once, which spreads risk but also shows how important AI has become in defense strategy. Not every company has been comfortable with that setup. Anthropic has pushed back in the past over access terms, which gives you a sense of the trade-offs involved.
