Procurement as AI policy
How has the US government used its buying power to shape which AI it uses and how labs behave?
Federal AI procurement began with new governance memos. Then came $1 enterprise deals, contract terms on ‘neutrality’, the exclusion of a lab over its usage limits, classified-network deals for the eight that accepted the terms, and a standard clause letting agencies test and suspend any model they buy. Purchasing rules now do much of the work regulation would otherwise do.
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- DHS orders DeepSeek products out of federal civilian IT systems and procurement
The first DHS supply-chain order under FASCSA bars DeepSeek, and anything built on it, from civilian agency purchases and systems.
- GSA issues AI clause letting agencies test purchased models and requiring change notices
A standard clause lets agencies test any purchased model and suspend it, and requires notice of model changes.
- Appeals court upholds Pentagon’s supply-chain-risk label on Anthropic
An appeals court accepts that vendor guardrails can justify exclusion.
Also on The Pentagon, the labs and the limits on use, Who supplies the AI-first military?
- Pentagon signs classified-network AI deals with eight firms, leaving out Anthropic
Eight firms get classified-network deals on ‘lawful operational use’ terms; the one that kept limits is left out.
- Pentagon labels Anthropic a supply-chain risk after it refused to drop two limits
A dispute over usage limits leads to a government-wide ban and a supply-chain designation.
Also on The Pentagon, the labs and the limits on use, Project Meridian and the race to govern military AI, Who supplies the AI-first military?
- OMB memo M-26-04 makes ‘unbiased AI’ terms mandatory in federal LLM contracts
Neutrality clauses and model disclosures become contract conditions.
- OpenAI, Anthropic and Google offer frontier AI to US agencies for about $1 via GSA
Labs compete to supply agencies at near-zero prices.
- White House publishes America’s AI Action Plan and three executive orders
Calls for frontier-model access across agencies and launches the ‘Woke AI’ order.
- OMB replaces Biden-era rules with new memos on federal AI use and AI buying
Sets the baseline rules for agency AI use and AI contracts.
Related developments
Connected developments not on this line
- DevelopmentPentagon says it has stopped using Anthropic’s products5 Oct 2026, Procurement, United States
- DevelopmentHegseth launches Project Meridian with Musk, Luckey and Gingrich to plan future war30 Sep 2026, Programme, United States
- DevelopmentPresidential memo orders rapid rewrite of Pentagon autonomous-weapons rules5 Jun 2026, Policy, United States
- DevelopmentOpenAI agrees to deploy its models on Department of War classified networks27 Feb 2026, Deal, United States
- DevelopmentHegseth orders an ‘AI-first’ military and ‘any lawful use’ terms for AI contracts12 Jan 2026, Policy, United States
- DevelopmentPentagon AI office awards Anthropic, Google and xAI up to $200m each, after OpenAI’s June award14 Jul 2025, Procurement, United States