Emil Michael, the Pentagon's Chief Technology Officer, stated that the US government should avoid taking equity stakes in AI startups. He also warned against implementing new regulations that could hinder industry development and innovation.
The Department of Defense currently collaborates with OpenAI, Google, Microsoft, Nvidia, and xAI. Meanwhile, Anthropic has been sidelined from partnerships due to disagreements regarding safety guardrails on its models.
The Pentagon maintains a 15% stake in MP Materials, valued at $400 million, to secure the supply chain for rare earth elements. Michael noted that AI companies do not pose the same existential dependency risks.
Under Defense Secretary Hegseth, the Pentagon has consolidated its innovation offices under Michael's leadership. The department now prioritizes six technology areas, with applied AI identified as the primary focus.
The internal platform GenAI.mil reached 1.5 million users by mid-2026. This figure exceeds the 1.3 million active-duty military personnel, indicating widespread adoption among civilian staff and contractors.
