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When asked about the potential fallout of this on the sector, Rear Admiral Selby said he hopes the tech industry won’t revert back to old tendencies and stop working with the Department of Defense, as Google famously did back in 2019. “I hope cooler heads can prevail, that we can get the politically-charged nature out of the discussion, and talk about what is best for this nation, and how do we adopt the technologies to allow us to succeed in this race against China. That’s what I think it’s going to come down to,” he said.
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“This signals a reallocation of capital towards efficiency,” Andrea Baronchelli, Aspire’s co-founder and CEO, tells Fortune. Usage of Anthropic’s Claude model grew by three times; usage of Cursor, an AI-coding tool, rose by 4.2 times. “This suggests that startups are now using AI to code and build their core products, not just for administrative tasks.”