Sunday, September 6th, 2026
The Pentagon has signed seven-year framework agreements to triple Patriot interceptor output and quadruple THAAD. The dollar figure is not the interesting clause. The guaranteed minimum annual quantity is.
The constraint on the AI buildout has been described as electricity for two years. The nearer one is a procurement queue for hardware whose price and availability are now set by trade policy rather than by fabrication.
A hospital can substitute a drug, a surgeon and a shift. It usually cannot substitute the single-source device a procedure was built around, and nobody notices which items those are until one of them stops arriving.
Buyers have stopped asking whether a supplier's software is secure, because they cannot find out. They have started asking who owns the supplier, where it builds, and what it would have to disclose.
An executive order can stop the next transformer at the border on the day it is signed. The equipment already energised across the grid is governed by a different phrase in the same document, and that phrase has no deadline attached.
Procurement has learned to ask what open-source components a vendor ships. It still rarely asks what is running on the controller beneath the operating system, where the code is older, the provenance is thinner and the update path frequently does not exist.
The fastest way to move disaster supplies is also the most expensive per tonne in existence. The alternatives cost a fraction and require somebody to fund idle capacity in advance, which no budget cycle rewards.
Organisations are sending each request to whichever model suits it, which lowers cost and quietly turns model selection into a piece of infrastructure somebody has to own.
Procurement can name every direct supplier and almost none of their suppliers. The shortages that halt production keep arriving from that second layer, where nobody was looking.
Generated training data started as a substitute for records nobody could license. It is now chosen deliberately, for reasons that have less to do with scarcity than with control.
Companies have always known their software sits on components maintained by volunteers. Insurers, auditors and regulators are now asking which ones, who maintains them, and what happens when that person stops.
Enterprises spent a year making sure they could switch between model providers. The switch turns out to run through a small number of clouds, chips and inference platforms that no procurement policy addressed.
A decade of frictionless departmental purchasing produced portfolios nobody inventoried. The consolidation now underway is being run by procurement, not engineering.
Procurement departments, tired of negotiating novel terms for every AI vendor, are converging on shared contract language for data handling, evaluation and exit.
Companies built production systems on models that vendors retire on their own schedule. The resulting migrations are unplanned, unbudgeted and increasingly frequent.