(Bloomberg) — A decade ago, Emil Michael gained notoriety in Silicon Valley as an aggressive negotiator for Uber, a startup that fought battles with governments in search of market domination. Now, Michael has switched sides in a dispute involving another startup, taking a leading role in the conflict between the Pentagon and artificial intelligence pioneer Anthropic PBC.
As U.S. Under Secretary of Defense for Research and Engineering, Michael has been negotiating with Anthropic and its executive director, Dario Amodei, about how the Department of Defense can use its AI models. The discussions, centered on Anthropic’s goal of preventing its technology from being used for mass surveillance of American citizens and to power fully autonomous weapons, are at an impasse. The Pentagon formally notified Anthropic this week that it has determined the company poses a supply chain risk — a designation typically used only for foreign adversaries.
The episode allowed Michael to revisit some of the aggressive tactics that defined his four years as Uber’s chief business officer. The impasse pitted the Department of Defense against industry leader Anthropic, as well as a broad and vocal group of technologists concerned about the use of AI in weapons.
Even amid clashes with Anthropic, Michael simultaneously seeks to build positive relationships with technology companies, reaching out to potential partners to accelerate the adoption of AI by the military. Since taking office in May, Michael has met with hundreds of technology companies, according to a department official. Part of the goal is to get the best AI technology into the hands of the government, work closely with some of the market’s leading players and expand the universe of contractors the Defense Department typically works with, the official said.
Michael also maintained direct contact with investors — including some who support Anthropic, with whom he spoke in recent days, according to a person familiar with the matter, who asked not to be identified because it was a private conversation. During these chats, he shared his perspective on the negotiations from the government’s point of view, the source added.
Michael has been publicly critical of Anthropic, calling Amodei a “liar” with a “God complex” in an X post last week. At the Andreessen Horowitz American Dynamism Summit on Tuesday, Michael said the problems with an unnamed model supplier went “far beyond what you have heard in the press over the last few weeks.” He also stated that the company pushed for “dozens of restrictions. And yet these AI models have been incorporated into some of the U.S. military’s most sensitive and important systems.”
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His strong personality in government matches his reputation at Uber, where he served as former CEO Travis Kalanick’s right-hand man and was a key player in his early successes. During his four years at the company, he helped transform Uber from a modest startup with a shaky regulatory framework into a household name and a pillar of global transportation. He also helped raise more than $10 billion. He oversaw Uber’s expansion into international markets, such as China, and, ultimately, the sale of Uber’s Chinese operations to competitor Didi Chuxing.
Michael’s winning streak at the company was marked by controversy. He was eventually fired in 2017 following an investigation into the ride-hailing company’s organizational culture, led by former US Attorney General Eric Holder. Holder’s report recommended Michael’s departure from the company, among other leadership changes, as reported by Bloomberg at the time. Kalanick left the company soon after.
Michael has previously been involved in other high-profile scandals at Uber, including reports that he and other executives visited a karaoke escort bar in 2017. He also suggested in 2014 that Uber could pay to obtain compromising information about journalists critical of the company. He denies harassing a reporter and, in a statement at the time, said he regretted the incident.
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Still, some of Michael’s allies are pleased to see a seasoned businessman in government. “You want someone in the Pentagon who really understands technology and knows how to navigate the technology world,” said Joe Lonsdale, a conservative investor and co-founder of Palantir Technologies Inc. And someone “who is young enough to still work 100 hours a week, extremely intensely.”
A former member of the Republican Party at Harvard University, Michael also has prior experience in government. Before joining Uber, he was a member of the White House Fellows program under President Barack Obama and served as special assistant to former Secretary of Defense Robert Gates. During his career at Uber, he was a member of the Defense Business Board to contribute his expertise in technology and develop public policy recommendations.
In the years following his departure from Uber and prior to his appointment to the Department of Defense, Michael was CEO of a special purpose acquisition company called DPCM Capital.
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His political donations, although limited, crossed party lines. Most recently, he donated $1 million in 2024 to MAGA Inc., President Donald Trump’s super political action committee, Federal Election Commission records show. Previously, Michael contributed $2,700 to Hillary Clinton’s 2016 presidential campaign.
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