Venture capitalist David Sacks has now pushed back against the reports linking Pentagon chief technology officer Emil Michael’s investment in Perplexity AI to the government’s move against Anthropic. According to a report by Bending, speaking on the All-In Podcast, Sacks called the allegations a ‘smear campaign’, arguing that Perplexity is not a direct competitor to Anthropic and does not sell to the Pentagon. He further added that Michael’s holdings had been cleared by ethics regulators. “It reminds me of what happened to me… all of a sudden there was that hit piece,” Sacks said, suggesting the timing of the report was politically motivated.

Sacks accused Anthropic of political maneuvering

Sacks also accused the AI giant Anthropic of running a political operation in Washington. “They’ve hired a number of very seasoned… political operatives,” he said, adding that the company can be “quite ruthless” despite its image as a safety-focused AI firm. The remarks from Sacks came days after US District Judge Rita Lin granted a preliminary injunction blocking the Pentagon from designating Anthropic as a “supply chain risk”. The court also found the designation likely unlawful and potentially retaliatory, enabling Anthropic to continue working with defense contractors. Pentagon CTO Emil Michael has also criticised the ruling on social media platform X (formerly known as Twitter) calling it “a disgrace” and claiming it contained “dozens of factual errors” rushed out during a time of conflict. He argued the decision undermines presidential authority and disrupts military operations. “There are dozens of factual errors in the 42 page judgment rushed out in 48 hours DURING A TIME OF CONFLICT that seeks to upend the @POTUS role as Commander in Chief and disrupt @SecWar full ability to conduct military operations with the partners it chooses. A disgrace,” wrote Michael.

AI policy clash intensifies

At the heart of the dispute is Anthropic’s refusal to deploy its AI in autonomous weapons or mass surveillance, positions that have put it at odds with defense officials. Backed by Amazon and Google, Anthropic now sits at the center of a high-stakes debate over how AI should be used in national security.Sacks, who recently stepped down as Trump’s AI and crypto czar after completing his 130-day term, will continue to influence policy as co-chair of the President’s Council of Advisors on Science & Technology.