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The a16z Show

Emil Michael: Iran, Anthropic and the Future of AI at the Pentagon

The a16z Show

a16z

Culture, Business, Science, Disruption, Technology, Software Eating The World, Entrepreneurship, Innovation

4.21.2K Ratings

🗓️ 13 March 2026

⏱️ 28 minutes

🧾️ Download transcript

Summary

This conversation with Emil Michael, undersecretary of defense for research and engineering and acting director of the Defense Innovation Unit, was recorded at the a16z American Dynamism Summit in Washington, D.C. Michael walks through how he inherited a department running 14 undefined technology priorities, cut them to six, and made applied AI number one. He also gives the first detailed account of why commercial AI contracts written under the previous administration created a vendor-lock crisis that put active military operations at risk.

Transcript

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0:00.0

We're faced with the biggest military buildup in history.

0:05.0

We're trending toward artificial general intelligence, a substrate, a layer, something that'll touch everything.

0:10.7

But we're way behind an AI at the department.

0:13.1

You are a CTO for the Department of War.

0:15.2

How do you take stock of where those priorities are?

0:18.0

When I took the role, we had 14 critical priority areas.

0:23.4

We got them down to six,

0:25.0

and there were the places where I thought

0:26.7

we had the greatest opportunity for change

0:29.2

and for growth and impact.

0:30.6

There has been an incredibly public discussion

0:33.6

about commercial AI models being used in the Pentagon.

0:37.3

What has changed in this latest discussion?

0:39.8

I had a holy cow moment because there were things well beyond what you've been hearing in the press in the last couple of weeks.

0:46.9

When Emil Michael was confirmed as Undersecretary of Defense for Research and Engineering, he took inventory.

0:55.9

What he found was a department with 14 critical technology priorities, most unchanged for nearly a decade, written in a language

1:02.1

so vague, no one could act on them. He cut the list to six. Applied A.I. Went to the top. Within 90

1:10.1

days, 1.2 million of the department's 3 million personnel had used some form of AI.

1:15.6

When he started, that number was 80,000.

1:18.6

The more urgent problem was what he found inside existing contracts.

1:22.6

AI models baked into the most sensitive commands in the U.S. military, under terms that could

1:28.8

shut the software off mid-operation. A company's internal values document, he argues, cannot be

...

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