[7777777phil]

FY2026 Pentagon's AI budget jumped 7x to $13.4 billion, now larger than Anthropic's annualized revenue. Once you're on an IDIQ contract with classified compute, good luck switching. Security clearance processing alone takes 243 days. Palantir figured this out years ago, 55%+ of revenue from government now.

Tried to summarize some of that in my recent writeup: https://philippdubach.com/posts/when-ai-labs-become-defense-...

[overvale]

Great write-up. But is the classified-network moat meaningful when the product is inference on a foundation model? The Last Supper primes locked in because the technology itself was bespoke.