John Miley
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Artificial intelligence holds huge promise for the U.S. military for both offensive measures and deterrence. That's why the Pentagon is racing to put AI in the battlefield and the office. With a yearly budget nearing $1 trillion, it's a massive tech shift.
The AI arms race
The global AI arms race leverages an unprecedented commercial AI boom. Large language models powering top AI tech are ideal for the military, since they are a general-purpose technology that can process vast amounts of data, reason and generate usable insights. Users interact with the AI in plain English, making adoption far easier. And vast U.S. tech spending has powered AI advances. The most cutting-edge models are being built by Anthropic, Google and OpenAI.
AI is already being used extensively in battle: By Israel in Gaza. Ukraine against Russia. Now the U.S. against Iran. These conflicts are a testing ground for many new AI tools. Ukraine even launched a product-development war program, known as "Test in Ukraine," where foreign military tech companies can get real-time data from combat conditions. In Iran, the U.S. is using AI to screen incoming data and help identify targets.
The big concern is competition with China, the second-largest AI spender. China is rapidly deploying AI to its military, adding electrical capacity at a rapid clip and providing $200 billion in state-backed AI capital. But China's top tech firms spent only 15% to 20% of what U.S. tech giants invested on AI in 2025, according to Goldman Sachs. This year, Alphabet, Amazon, Meta and Microsoft will unleash nearly $700 billion of capital expenditures to build AI.
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