On Friday, David Sacks defended Pentagon official Emil Michael against allegations of a conflict of interest tied to his investment in Perplexity AI.

Sacks Alleges ‘Smear Campaign' In Anthropic Dispute

Speaking on the All-In Podcast, Sacks dismissed the claim as baseless, arguing the company is not a direct competitor to Anthropic and does not sell to the Pentagon.

He also noted that Michael's holdings were cleared by ethics regulators.

The investor suggested the timing of the report was questionable, adding it resembled prior attacks against him: "It reminds me of what happened to me… all of a sudden there was that hit piece."

‘Political Operation': Sacks Targets Anthropic's Strategy

Sacks went further, accusing Anthropic of operating beyond its image as a safety-focused AI firm.

"They've hired a number of very seasoned… political operatives in Washington," he said, concluding, "This is, I think, frankly, a political operation that’s willing to get down and dirty and they’re not always on the side of the angels. I think they can be quite ruthless."

Anthropic did not immediately respond to Benzinga's request for comments.

Earlier this week, Sacks said he is stepping down as Donald Trump's AI and crypto czar after completing his 130-day term as a special government employee. He will now join the President's Council of Advisers on Science & Technology.

Court Blocks Pentagon Move Against Anthropic

The remarks come as Anthropic scored a legal win after U.S. District Judge Rita Lin granted a preliminary injunction blocking the Pentagon from restricting the company's AI models.

The court found the government's designation of Anthropic as a "supply chain risk" likely unlawful and potentially retaliatory, temporarily halting a directive tied to the Trump administration.

Michael on X criticized the ruling as containing "dozens of factual errors" and being "rushed out in 48 hours during a time of conflict."

He added that it undermines the president's authority as commander in chief and disrupts military operations, calling it "a disgrace."

AI Policy Clash Over Military Use Intensifies

At the heart of the dispute is Anthropic's stance against deploying its AI in autonomous weapons or mass surveillance, positions it says triggered the backlash.

Backed by giants like Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, the company now sits at the center of a high-stakes clash over how AI should be used in national security.

Benzinga Edge Stock Rankings indicate that Amazon is trending lower across short, medium, and long-term periods, even as its Growth ranks in the 95th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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