Pentagon’s ouster of Anthropic opens doors for small AI rivals

Small defense industry artificial intelligence startups are suddenly fielding calls from generals, combatant commanders and deep-pocketed investors, after the souring relationship between the Pentagon and its once-favored AI vendor, Anthropic , reinforced the need to diversify and increase the number of AI providers for the military. In the weeks since the Department of Defense’s troubled relationship with Anthropic burst into public view and led to the company being kicked out of the U.S. military, new defense-focused AI companies like Smack Technologies and EdgeRunner AI say they have experienced a shift in interest that would have been unimaginable just months ago. They have received a surge of overtures about possible contracts and meeting requests and been approached by investors who previously showed no interest. The Pentagon’s growing animosity toward its top AI provider, Anthropic, has opened up opportunities for smaller rivals, who have long sought a foot in the door to the most lucrative government contractor in the world. A defense contract can lead to more business with other branches of the U.S. government, and is a useful signal of trust and safety for potential commercial clients. “We’ve seen a massive increase in demand from customers and the government to get AI solutions fielded since Anthropic was declared a supply-chain risk ,” said Tyler Sweatt, CEO of Second Front, a company that helps technology firms meet the requirements needed to operate on secure Pe…