Startups and the U.S. government: It’s getting complicated

The article discusses the increasingly complex relationship between startups and the U.S. government, particularly as more startups engage with government contracts and regulatory approvals in sectors like AI, automation, space, robotics, and climate technology. This shift reflects a broader change in the startup ecosystem over the past decade, moving beyond consumer internet companies to deep tech and defense-related ventures that depend heavily on government involvement. While government partnerships can provide crucial funding and revenue, they also introduce risks, such as operational disruptions during government shutdowns, which can stall startup progress. Additionally, the article highlights the U.S. government's expanding role in the tech industry through financial interventions and equity stakes. Under the Biden Administration, the Department of Energy’s Loan Programs Office renegotiated deals granting the government ownership interests in companies like Canadian miner Lithium Americas and a Lithium Americas-GM joint venture, acquired via no-cost warrants. This approach follows similar recent federal loans and equity acquisitions with companies such as Intel and MP Materials, indicating a strategic government effort to influence critical