Google may gain an advantage in the artificial intelligence race as rivals OpenAI and Anthropic clash over U.S. Defense Department contracts. Bloomberg reported that Google plans to provide AI agents for unclassified tasks across the Pentagon’s workforce of about three million personnel.
The development comes as Anthropic has sued the Pentagon after the agency labeled the company a supply chain risk during negotiations involving its Claude AI system. The dispute has drawn public attention and intensified competition between leading AI firms.
Rivalry between OpenAI and Anthropic escalates as both battle for investors, talent, and enterprise customers. https://t.co/RtYFvh1jpu
— The Information (@theinformation) March 10, 2026
Industry analysts say the conflict could benefit Google. Harrison Rolfes of PitchBook told Axios that rival companies fighting publicly can open opportunities for another firm to advance quietly.
Google has largely avoided the dispute while expanding its AI capabilities. Analysts note that Alphabet’s large revenue base gives the company more financial flexibility than OpenAI or Anthropic. Data compiled by a16z and Yipit shows Google’s Gemini AI platform is also gaining users rapidly.
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