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Palantir CTO Shyam Sankar argues the AI industry overemphasizes model development while neglecting **diffusion**—how AI integrates into real-world systems. He compares AI to electricity, noting that economic impact requires not just supply (models) but also tools and infrastructure to deploy AI broadly. Sankar criticizes labs for ignoring **systems engineering** in AI safety and highlights Palantir’s focus on preserving **competitive advantage** (alpha) rather than chasing median performance. He also frames AI adoption as a **‘religious war’**, contrasting tech’s optimism with growing skepticism about progress.

Oct 2026StratecheryNews article

Palantir confirms its Maven AI platform—used by NATO for military operations—has no operational 'kill switch' controlled by either the company or the U.S. government. The statement follows disruptions to Ukraine’s Starlink satellite network, raising European concerns over dependency on U.S.-based defense technology. The company emphasizes no unilateral shutdown capability exists for the system.

Oct 2026ReutersNews article

Watchtower Labs, co-founded by Shield Capital’s Raj Shah and led by CEO Akhil Iyer, launches a $35M-funded AI-driven logistics software suite for defense planners. The tool uses natural language queries and discrete-event simulations to model supply chain risks—such as anti-air missile shortages or cyber disruptions—returning actionable contingencies via a custom dashboard. Backed by Shield, Conviction, In-Q-Tel, and Founders Fund, Watchtower already supports early contracts with major U.S. operational commands and aims to replace manual Excel-based planning in high-stakes scenarios.

Oct 2026Upstarts MediaNews article

ASI Inc. secures a **$325 million Series C round**, achieving a **$3 billion valuation** from investors including Spark Capital, Citadel Securities, and Andreessen Horowitz. The AI startup specializes in modeling air traffic, energy grids, and defense operations for real-time decision-making, serving clients like the **Federal Aviation Administration (FAA)**, **United Airlines**, **Delta Air Lines**, and the **U.S. military**. Recent wins include an **$875 million FAA contract** for U.S. air traffic management and a **$99 million deal** with the U.S. Army. Funding will accelerate expansion into aviation, defense, energy, and logistics while scaling research and engineering teams.

Oct 2026SiliconANGLENews article