This relationship between stars and the U.S. government is changing fast. We discussed this issue in a recent episode of the Equity podcast. The TechCrunch transportation podcast hosted by Kirsten Korosec, Anthony Ha, and Max Zeff. Then they discuss what this tangled state of affairs means for the tech sector. Big-league startups are more and more relying on government contracts and permits. The stakes are dangerously high, especially at this moment with the threat of an imminent U.S. government shutdown.
Equity, the flagship podcast of the TechCrunch network, is a must-listen on startup and tech topics. It is available on X (formerly Twitter) and Threads at the username @EquityPod. It has developed a dedicated listenership in no small part because of its smart, lively conversations. During the latest episode, the hosts explored the government’s increasing involvement in sectors like artificial intelligence, robotics, and climate technology, which has led to a stronger tie between startups and federal agencies.
As the defense sector became a hotbed for startups, prior to the dark shadow of a government shutdown looming over, the stakes could not be higher. More and more, companies are running to the government to help spur that innovation. This trend is particularly acute in emerging tech spaces such as AI and automation.
We were lucky to have Anthony Ha of TechCrunch share his impressions from the podcast conversation. He added that this is most indicative of just how much the startup landscape has changed over the past 10 years, particularly the last few years. He argued that today, the regulatory approvals are becoming much more significant for deep tech spaces. The hurdles for startups today couldn’t be more different from a decade ago.
That discussion included a lot of exciting things happening in the industry too, including Periodic Labs’ recent seed round. Furthermore, the hosts examined the entertainment sector’s response to AI-generated content, specifically mentioning Tilly Norwood, an AI actress that has sparked debate around authenticity and creativity in media.
In the past several years, the U.S. federal government has had a much more active hand in the tech and industrial sectors. It has gained equity in companies such as. For instance, recently it took a 5% stake in Canadian miner Lithium Americas. It gained a 50 percent stake in a joint venture with General Motors to mine lithium in Nevada. These moves highlight the executive branch’s growing strategic concern over technologies that have become essential to our nation’s security and economic prosperity.
Ha explained that defense tech is a hyper-competitive, fast-moving, complex space. He pointed out that deep tech sometimes takes multiple regulatory approvals upfront, adding another layer of hurdle for startups to overcome. He noted that an increasing proportion of the startup ecosystem today looks to the federal government. This is a huge change from just a decade ago.
Startups are confidently charting this new course. They need to be strategic about how much they depend on government funds and what effect any delay in legislation would have. Speaking of our Equity podcast, they’re planning an equity-focused event in San Francisco from October 27-29, 2025. Industry leaders united under one common goal, to dive deeper into these critical issues and challenges.
