Pentagon CTO opposes government stakes in AI companies, warns against regulation

The Pentagon’s top technologist wants the US government to keep its hands off AI companies, both financially and regulatorily. Emil Michael, who serves as the Department of Defense’s Chief Technology Officer and Under Secretary of Defense for Research and Engineering, went on CNBC to argue that Washington should neither acquire equity stakes in AI firms nor pile on new rules that could slow the industry down. The anti-regulation case from inside the Pentagon Michael’s core argument is that AI companies partnering too closely with politicians on regulation is a recipe for trouble. The implication: regulatory frameworks tend to calcify around whoever’s already winning, locking out the next generation of competitors and slowing down the kind of rapid iteration that makes AI useful in the first place. The Pentagon has been on an aggressive tear integrating commercial AI tools into its classified networks, working with OpenAI, Google, xAI, Nvidia, and Microsoft, among others. The stance also comes with a notable exception that proves the rule. The DoD has made equity investments in certain suppliers where strategic supply chain concerns demanded it, including a 15% stake in MP Materials...