Google Advances Pentagon AI Deal Despite 950 Employee Protests, Shares Up 1.81%

Alphabet's Google is moving forward with a classified AI agreement allowing Pentagon use of Gemini models for lawful purposes, despite backlash from 950 protesting employees. The deal, first reported by The Information on April 28, 2026, was confirmed by the Pentagon's AI chief, who noted it saves thousands of man-hours weekly and positions Google as the third firm after OpenAI and xAI. Contract amendments provide API access with safeguards against surveillance and autonomous weapons, boosting shares 1.81% to 348.52 amid revenue potential but reputational risks.