Google Signs Classified AI Deal with Pentagon Amid Employee Backlash

Alphabet's Google has finalized an agreement allowing the Pentagon to deploy its AI models on classified systems, amending an existing unclassified contract despite protests from over 600 employees and a DeepMind researcher publicly expressing shame. The deal, mirroring recent pacts with OpenAI and xAI, permits use for any lawful government purpose but prohibits domestic surveillance and autonomous weapons without oversight, though Google admits it cannot veto decisions. Investors face a trade-off: potential revenue from defense contracts versus reputational, governance, and regulatory risks pressuring GOOG.OQ sentiment.