Tech
Will the Pentagon’s Anthropic controversy scare startups away from defense work?
In just over a week, negotiations over the Pentagon’s use of Anthropic’s Claude technology fell through, the Trump administration designated Anthropic a supply-chain risk, and the AI company said it would fight that designation in court.
OpenAI, meanwhile, quickly announced a deal of its own, prompting backlash that saw users uninstalling ChatGPT and pushing Anthropic’s Claude to the top of the App Store charts. And at least one OpenAI executive has quit over concerns that the announcement was rushed without appropriate guardrails in place.
On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I discussed what this means for other startups seeking to work with the federal government, especially the Pentagon, as Kirsten wondered, “Are we going to see a changing of the tune a little bit?”
Sean pointed out that this is an unusual situation in a number of ways, in part because OpenAI and Claude make products that “no one can shut up about.” And crucially, this is a dispute over “how their technologies are being used or not being used to kill people” so it’s naturally going to draw more scrutiny.
Still, Kirsten argued, this is a situation that should “give any startup pause.”
Read a preview of our conversation, edited for length and clarity, below.
Kirsten: I’m wondering if other startups are starting to look at what’s happened with the federal government, specifically the Pentagon and Anthropic, that debate and wrestling match, and [take] pause about whether they want to be going after federal dollars. Are we going to see a changing of the tune a little bit?
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Sean: I wonder about that, too. I think no, to some extent, in the near term, if only because when you really try to think about all the different companies, whether they’re startups or even more established Fortune 500s that do work with the government and in particular with the Department of Defense or the Pentagon, [for] a lot of them, that work flies under the radar.
General Motors makes defense vehicles for the Army and has done [that] for a very long time and has worked on all electric versions of those vehicles and autonomous versions. There’s stuff like that that goes on all the time and it just never really hits the zeitgeist. I think the problem that OpenAI and Anthropic ran into within the last week is like, these are companies that make products that a ton of people use — and also more importantly, [that] no one can shut up about.
So there’s just such a spotlight on them, that naturally highlights their involvement to a level that I think most of the other companies that are contracting with the federal government — and, in particular, any of the war-fighting elements of the federal government — don’t necessarily have to deal with.
The only caveat I’ll add to that is a lot of the heat around this discussion between Anthropic and OpenAI and the Pentagon is very specifically about how their technologies are being used or not being used to kill people, or in parts of the missions that are killing people. It’s not just the attention that’s on them and the familiarity we have with their brands, there is an extra element there that I feel is more abstract when you’re thinking about General Motors as a defense contractor or whatever.
I don’t think we’re going to see, like, Applied Intuition or any of these other companies that have been framing themselves as dual use back off much, just because I don’t see the spotlight on it and there’s just not the sort of shared understanding of what that impact might be.
Anthony: This story is so unique and specific to these companies and personalities in a lot of ways. I mean, there have been a lot of really interesting thought pieces about: What is the role of technology in government? [Of] AI in government? And I think those are all good and worthwhile questions to ask and explore.
I think also, though, that this is a very curious lens through which to examine some of those things because Anthropic and OpenAI are not actually that different in a lot of ways or the stances they’re taking. It’s not like one company is saying, “Hey, I don’t want to work with the government” and one is saying, “Yes, I do.” Or one is saying, “You can do whatever you want.” and [the other is] saying, “No, I want to have restrictions.” Both of them, at least publicly, are saying, “We want restrictions on how our AI gets used.” It just seems like Anthropic is digging in their heels a lot more about: You cannot change the terms in this way.
And then on top of that, there also just seems to be a personality layer where, the CEO of Anthropic and, Emil Michael — who a lot of TechCrunch readers might remember from his Uber days, and is now [chief technology officer for the Department of Defense]. Apparently, they just really don’t like each other. Reportedly.
Sean: Yes, there’s a very big “girls are fighting” element here that we should not overlook.
Kirsten: Yeah, a little bit. There is, but the implications are a little bit stronger than that. Again, to pull back a little bit, what we’re talking about here is the Pentagon and Anthropic coming into a dispute in which Anthropic appears to have lost, although I should say they are still very much being used by the military. They are considered a crucial technology, but OpenAI has kind of stepped in, and this is evolving and will likely change by the time this episode comes out.
The blowback has been interesting for OpenAI, where we’ve seen a lot of uninstalls of ChatGPT I think surged 295% after OpenAI locked in the deal with the Department of Defense.
To me, all of this is noise to the really critical and dangerous thing, which is that the Pentagon was seeking to change existing terms on an existing contract. And that is really important and should give any startup pause because the political machine that’s happening right now, particularly with the DoD, appears to be different. This isn’t normal. Contracts take forever to get baked in at the government level and the fact that they’re seeking to change those terms is a problem.
Tech
Marc Lore says that AI will soon enable anyone open a restaurant
Marc Lore, the veteran e-commerce entrepreneur who sold his previous startups to Amazon and Walmart, has big plans to infuse AI into his current venture, Wonder.
The centerpiece of those plans is Wonder Create, an initiative that would let anyone — from food entrepreneurs to social media influencers — use AI to design and launch their own restaurant brand in under a minute. The virtual restaurant would then go live across Wonder’s growing network of tech-enabled kitchen locations, currently numbering 120 and expected to reach 400 next year.
Lore’s startup, a vertically integrated dining and delivery platform, has evolved from food trucks to fast casual restaurants with 10 to 20 seats. These are not normal restaurants, though; they are “programmable cooking platforms” capable of operating as 25 different types of restaurants based on cuisine, within their all-electric kitchens that are increasingly becoming robotic.
Speaking at The Wall Street Journal’s “Future of Everything” conference this week, Lore said these kitchens have a 700-ingredient library. The “restaurants” they house actually consist of many different brands that operate from within these locations.
In addition to a staff of up to 12 people in these kitchens, cooking tech, like conveyors and robotic arms, are involved in the cooking process. The company also just bought Spice Robotics, a maker of an automatic bowl-making machine previously used by Sweetgreen. Next year, it plans to offer an “infinite sauce machine” that can make bout 80% of all the sauces found in recipes on the internet today.
Wonder Create was announced earlier this year as a way for anyone to use Wonder’s software to launch their own restaurant brand and recipes.
Lore offered more details as how this would work by leveraging AI technology, describing the plan as something like a “Shopify front-end with an AI prompt.”
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“You type in what kind of restaurant you want to build. It builds the restaurant — AI does — in under a minute. It does the name, branding, description, pictures, pricing, health information, and all the recipes for your restaurant,” Lore explained during an interview at the WSJ event. The would-be restaurateur could then refine the prompt if changes were needed. When ready to go live, the restaurant would launch across all of Wonder’s locations.
The company currently has 120 of these “programmable cooking platforms” in operation, a number that’s expected to grow to 400 next year. As it adds robotics to the equation, the company won’t necessarily reduce headcount, Lore noted. Instead, it will increase the number of meals a kitchen can produce in a given period.
“We have about 7 million throughput capacity with 12 people,” he said. “We see a path to getting to 20 million throughput out of 2,500 square feet with just 12 people. The goal also is…I guess by 2035, to have 1,000 unique restaurants operating out of the 2,500 square feet,” Lore added.
The goal with these AI-created “restaurants” is to allow people to experiment with food in new ways. A restaurateur could test recipes to gauge customer reaction before adding dishes to his own brick-and-mortar locations, for example.
Lore sees other use cases for the platform, too, like letting influencers connect with their audience through their own “restaurant” brands without having to actually launch their own chains.
“It could be a mega-influencer, a micro-influencer — anyone that wants to monetize their following,” Lore said. “Or it could be a private trainer that wants to make specific bowls. It could be a not-for-profit. It could be Disney for [marketing] their new movie. Anybody can make a restaurant.”
Whether that many people actually want to is an open question. Ghost kitchens — a similar concept that promised to let brands sell food without owning a restaurant — had a rocky run in the early 2020s, with several high-profile operators scaling back or shutting down after struggling to build customer loyalty. Wonder’s added layer of automation and AI may address some of those pitfalls, but the model is still unproven at scale.
MrBeast Burger, a famous ghost kitchen experiments, vividly illustrated the challenge. The brand faced widespread complaints over inconsistent food quality — a consequence of relying on dozens of different contracted kitchens and staff. Wonder’s programmable, increasingly automated kitchens are designed to solve exactly that problem.
There are still limits to this idea, Lore admitted. Wonder’s team (including its robots) can’t do things like toss and stretch pizza dough or slice and roll sushi. Instead, Wonder’s focus is on simpler basics like burgers, chicken wings, fried chicken, and bowls.
The whole plan comes together with Lore’s other acquisitions — Grubhub for its 250 million-deliveries-per-year business and Blue Apron for its meal kit business. Now, Wonder is focused on buying restaurant brands, like New York City-based Blue Ribbon Fried Chicken, which it snapped up for $6.5 million in February.
“When you buy a brand — and you can buy a brand that has 10 locations, or even 50 locations — and then overnight put it in 1,000, there’s just an incredible arbitrage there,” Lore noted.
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Tech
Peter Sarlin’s QuTwo reaches $380M valuation in angel round
QuTwo, the Finnish AI lab founded by former AMD Silo AI CEO Peter Sarlin, is now valued at €325 million (approximately $380 million) after raising a €25 million angel round ($29 million). It’s a sign of enduring tailwinds for AI, quantum computing, and sovereign tech, especially for Europe-made companies.
QuTwo’s name is a nod to quantum computing, but it hasn’t gone all-in on quantum. Its core product, QuTwo OS, is an orchestration layer that directs tasks to classical, quantum or hybrid architectures — with the idea that enterprise use cases are often best served by “quantum-inspired” computing, which uses classical chips to simulate quantum behavior on more reliable hardware.
Enterprise AI will be QuTwo’s bread and butter. The company already secured some $23 million in committed revenue thanks to design partnerships with the likes of retail giant Zalando, for which it helped develop AI assistants. “AI is the North Star that we will continue to aim for. Quantum is just a new type of compute,” said Sarlin, who is adamant that QuTwo is an AI company.
Momentum has been building around Europe-based AI labs, and several of them have become overnight unicorns. Just last week, former DeepMind researcher David Silver secured $1.1 billion for his new endeavor, Ineffable Intelligence. QuTwo’s valuation and round size are somewhat modest in comparison but will let it pursue its roadmap under less pressure.
According to Sarlin, who serves as QuTwo’s executive chairman, this was a decision he also made for his previous company, Silo AI, which AMD acquired for $665 million in 2024. “I had a lot of investors who would have wanted to pour a lot of money into making Silo into Europe’s OpenAI, but I didn’t believe in that play,” he told TechCrunch.
The main difference is that QuTwo wants the freedom to think long term, with a five- to ten-year horizon. “We are on a mission to build the globally leading AI company for the next paradigm, given that Europe did not succeed in building the AI company for this era,” Sarlin said.
It’s not that Sarlin is bearish on European AI, of which he is a prolific backer. Nor is he necessarily critical of extra-large rounds — he volunteered that he is also an investor in Yann LeCun’s Ami Labs, which raised $1.03 billion, and in British-American venture Recursive Superintelligence, which is rumored to be following the same path. But he didn’t see a billion-dollar round as the right fit for QuTwo — nor VC money, at least for now.
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Until recently, QuTwo was solely funded through Sarlin’s family office, PostScriptum, which also incubated NestAI, the other company where he serves as executive chairman. But whereas NestAI raised some $115 million in a funding round led by Finland’s sovereign fund and Nokia, QuTwo wasn’t seeking to raise external funding.
However, when the lab’s soft launch generated significant interest earlier this year, Sarlin decided he would say no to checks from VCs and strategic investors, but yes to an angel round in part due to the geopolitical moment Europe is currently navigating.
With Europe increasingly looking to favor local alternatives to U.S. tech providers, there are tailwinds for AI made in Finland. But there is also investor appetite for a company that promises to facilitate more ambitious R&D initiatives in the fields where the region already has strong players, such as the automotive, life sciences and gaming sectors.
Conversely, Sarlin expects that QuTwo’s angel investors could open doors across Europe. There are definitely quite a few introductions he could request from this group, which includes Yuri Milner, Xavier Niel, Nico Rosberg, Dieter Schwarz and Niklas Zennström, and as well as many startup founders from Hugging Space, Legora, Miro, Skype, Supercell, Wolt, and more.
This will also support QuTwo’s growth. It recently expanded into Sweden, and has been hiring. According to Sarlin, some 50 quantum and AI scientists have joined the team, which includes two other second-time entrepreneurs: his former cofounder at Silo, Kaj-Mikael Björk; and Kuan Yen Tan, a cofounder at IQM, the Finnish quantum company that is set to go public.
QuTwo’s connection with IQM is also a reminder that the company believes we are about to enter the quantum era — it just can’t wait. “The question for repeat founders like [us] is how can we have even a larger impact. In the long term, it’s important for Europe that we build the AI company for the next paradigm out of Europe. But, in the short term, we can have a significant impact in driving ambitious R&D moon shots in Europe,” Sarlin said.
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Tech
reMarkable’s new Paper Pure tablet goes back to basics with a monochrome screen
After exploring the bigger market for productivity tablets featuring color displays with the Paper Pro and the smaller Paper Pro Move, E Ink tablet maker reMarkable is returning to its roots with a new monochrome device called the Paper Pure.
The new, $399 Paper Pure succeeds the monochrome reMarkable 2 after six years, and comes with more powerful hardware as well as modern software features that make it competitive in today’s tablet market.
The Paper Pure has a 10.3-inch display when measured diagonally, the same as the reMarkable 2, but the new one is wider, which, the company says, makes it easier to take notes and read text. Notably, the resolution hasn’t changed between the two tablets, staying at 1872 x 1404 pixels with a pixel density of 226 PPI.
The tablet also comes with 32GB of storage, four times the amount you got on its predecessor, and is also about 40 grams lighter, weighing 360 grams.

ReMarkable said the Paper Pure is 50% more responsive than the reMarkable 2, and offers 30% more battery life with its 3,820 mAh battery.
The company has added a slew of new features to the tablet to bring it up to par with modern productivity tools, including support for a web app. The Paper Pure lets you sync your calendar, as well as take and share notes for a particular meeting. And if you import documents from cloud storage services, the online sync service will automatically convert them into a notebook suited for reading and annotating on the tablet itself. The company said it also comes with better handwriting search capabilities.
The Paper Pure integrates with Slack, too, so you can convert handwritten notes into typed text that you can share. It also integrates with collaboration tool Miro, letting you share sketches and the like.
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The Norwegian company said it now plans to sunset production of the reMarkable 2, but will still offer software updates and support to existing customers.
The Paper Pure’s base model comes bundled with a stylus, and the costlier $449 version gets you a fancier stylus, dubbed Marker Plus, that includes an eraser function, plus a sleeve folio in various colors. Users can order the device starting today, and shipping is expected to start in early June.
The company said it has sold more than 3.5 million devices so far, and that it has 1.2 million subscribers for its Connect service, which offers unlimited cloud storage, exclusive templates, and the ability to create links to share notes or sketches.
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