Pentagon CTO Warns Against Government Regulation of AI Industry
The Pentagon's Chief Technology Officer and Under Secretary of Defense for Research and Engineering, Emil Michael, has expressed concerns about government stakes in AI companies. In a recent interview with CNBC, he argued that the US government should not acquire equity stakes in AI firms or pile on new rules that could slow down the industry.
Michael's core argument is that regulatory frameworks tend to calcify around whoever's already winning, locking out the next generation of competitors and slowing down innovation. This, he believes, would be a recipe for trouble if AI companies partner too closely with politicians on regulation.
The Pentagon has been actively integrating commercial AI tools into its classified networks, working with OpenAI, Google, xAI, Nvidia, and Microsoft among others. However, Michael made an exception in the case of MP Materials, where the DoD acquired a 15% stake valued at $400 million due to strategic supply chain concerns.
The Pentagon's aggressive integration of commercial AI tools into its classified networks has led to some notable partnerships. For instance, GenAI.mil, the Pentagon's internal generative AI platform, has scaled to 1.5 million personnel as of mid-2026, with Anthropic being effectively sidelined from Pentagon partnerships due to disputes over safety constraints.