Contracts

• The U.S. Defense Department announced AI procurement contracts with seven companies: Amazon Web Services, Google, Microsoft, Nvidia, OpenAI, SpaceX, and Reflection AI, which raised $2 billion in funding last year. • The AI products will be deployed in Impact Level 6 and 7 Defense Department systems capable of storing classified information, with access provided through an internal portal called GenAI.mil. • Anthropic notably was excluded from the contracts after the Trump administration designated it as a supply chain risk in February, though the Pentagon reportedly continues using Anthropic's Claude Mythos Preview model.

• Meta reported $107bn in contractual commitments for Q1 2026 cloud services to fuel AI model development. • Aggressive investments include datacenter expansions and supply chain deals for AI hardware components. • Company expects AI breakthroughs later in 2026, pushing to monetize advanced research.

Prime minister says the middle of a global fuel crisis is ‘the worst possible time to jeopardise’ Australia’s partnerships with Asian trading partnersThe prime minister, Anthony Albanese, has confirmed next month’s federal budget will not include a new tax on existing gas export contracts as he criticised the “populist” campaign calling for a levy on producers.As reported last week, Albanese was poised to reject pressure to introduce a 25% tax on gas exports amid concerns the intervention could alienate the same Asian trading partners Australia is relying on for supplies of diesel and petrol. Continue reading...

• President Donald Trump signed Executive Order 'Addressing DEI Discrimination by Federal Contractors' on March 26, 2026, mandating a clause in all federal contracts prohibiting racially discriminatory DEI activities by contractors and subcontractors. • The clause subjects non-compliant parties to False Claims Act liability, contract termination, and potential debarment, with enforcement prioritized by the U.S. Attorney General including review of whistleblower qui tam actions. • This builds on prior Trump actions eliminating federal DEI programs and aligns with EEOC Chair Andrea Lucas's warning letter to the 500 largest U.S. companies about Title VII liabilities from DEI practices.

• Tech companies including Palantir, Anthropic, and Anduril are increasingly partnering with the US Department of Defense, marking a significant shift from decades of strained relations between the tech sector and military. • Anduril announced a 10-year, US$20 billion contract with the US military, while Palantir's Maven data analytics platform and Anthropic's AI have been used extensively in operations against Iran, including defense against Shahed drones. • The collaboration represents what investors view as a lucrative opportunity, with traditional military contractors like Lockheed Martin and Boeing now joined by rising tech giants in supplying cloud computing, AI-powered drones, and advanced defense systems.

Policy brought forward as Middle East war highlights fragility of global supply chainsBritish suppliers will be prioritised for public contracts in shipbuilding, steel, AI and energy infrastructure under new guidance marking them out as sectors vital to national security.Departments will also have to either use British steel or justify sourcing it from overseas, under the rules announced by the government. Continue reading...

• The Pentagon transitioned from pilot projects to long-term enterprise contracts with venture-backed defense tech firms, exemplified by deals with Anduril and Palantir totaling billions. • Anduril's contract covers AI-powered drones, autonomous systems, and counter-UAS hardware tied to live missions, setting new benchmarks for manufacturing and delivery. • Steven Simoni of Allen Control Systems called it a 'meaningful signal' that startups must prove operational reliability over prototypes.