SBIR Settled and Reconciliation Revealed While AI/Anthropic and Iran Wars Heating Up

Welcome to the latest edition of Defense Tech and Acquisition.

• The Pentagon/White House and Anthropic go from bad to worse.

• Senate appears to have reached agreement on SBIR Reauthorization

• DoD outlines it will spend its Reconciliation budgets ASAP

• Army increased drones and aviation and decreased business systems

• Navy seeks new subs, accelerated ship deliveries, and torpedoes

• Air Force Updates Priorities and Restructures Acquisition Offices

• Space Force Pushes for Personnel Growth to Support New Missions

• Golden Dome Needs a Single Pane of Glass & AI to Manage Complexity

• China Has Undertaken More Complex Exercises and Adds to AI Wish List

• With conflict in Iran restarted, we hope a lethal, interoperable, and resourced Joint Force is able to achieve key objectives quickly and keep Americans safe.

Antrhopic CEO Dario Amodei met with Pete Hegseth in the Pentagon this week. It did not go well. Here’s a summary of their public reactions (summarized by Grok).

Antrhopic Reaction

• CEO Dario Amodei

  • Issued a statement refusing to accede, stating the company cannot in good conscience remove safeguards for the two specified uses, which they view as unreliable or ethically risky with current technology.

  • Anthropic highlighted prior cooperation (first to deploy in classified networks and national labs) but noted the Pentagon’s threats—including supply-chain risk designation (typically for adversaries) and invoking the Defense Production Act—are contradictory and unprecedented for a U.S. firm.

  • They indicated intent to challenge legally if pursued.

  • He discussed the feud on CBS News.

Pentagon Reaction

• SECWAR Pete Hegseth

  • Accused Anthropic of arrogance and betrayal, claiming the company seeks veto power over military decisions.

  • Declared Anthropic a Supply-Chain Risk to National Security effective immediately, barring military contractors/suppliers from any commercial activity with the firm, while allowing a 6-month phase-out for DoD use to transition elsewhere.

  • Emphasized that military use must remain under elected leaders, not unelected tech executives, and that safeguards cannot override troop safety or readiness.

  • Anthropic’s response to SECWAR’s post.

• DoD CTO Emil Michael

  • Accused Anthropic of lying about DoD intentions, stating the department does not engage in mass surveillance (already illegal) and needs unrestricted access for scenarios like defending against enemy drone swarms—without needing to call Dario for permission. He discussed it on CBS News.

• President Trump

  • Directed all federal agencies to immediately cease using Anthropic technology, calling it a disastrous mistake by radical left, woke actors endangering American lives and national security. He allowed a 6-month phase-out