Google Signs Classified AI Deal with Pentagon; BYD Raises Smart Driving Prices

Tech Highlights: AI Militarization Debate Resurfaces as Smart Driving Costs Rise

A string of major tech developments has unfolded in recent days. Google's reported signing of a classified AI agreement with the U.S. Department of Defense has drawn widespread attention, while BYD's announcement of a price hike for its intelligent driving package highlights deeper supply chain pressures across the industry. Here's a roundup of the key stories.

Google Signs Classified AI Deal with Pentagon, Raising Questions Over Permissive Terms

On April 27, sources revealed that Google has signed a classified AI agreement with the U.S. Department of Defense, allowing the Pentagon to use Google's AI technology for any "lawful government purpose." The agreement also requires Google to assist in adjusting its AI safety settings and filters according to government needs.

Notably, media reports indicate that the terms of this agreement are considered more permissive than a similar deal OpenAI struck with the Pentagon in February. This suggests Google has made significantly greater concessions regarding the boundaries of AI military applications.

Historically, Google withdrew from the Pentagon's "Project Maven" in 2018 following massive employee protests over the project's use of AI to analyze drone surveillance footage. Google's renewed embrace of defense contracts — with even more open terms — marks a fundamental shift in how Silicon Valley tech giants approach AI militarization.

As of the time the news broke, Google's stock edged up 0.15%, with markets reacting relatively calmly. However, discussions surrounding AI ethics and military applications are certain to intensify.

BYD's God's Eye B Package to Rise to 12,000 Yuan Starting May 1

On the evening of April 28, BYD officially announced that due to significant increases in global storage hardware costs, the optional "God's Eye B Assisted Driving LiDAR Edition" for select models across its Dynasty, Ocean, and Fang Cheng Bao lineups will rise from 9,900 yuan to 12,000 yuan — an increase of approximately 21%.

The price adjustment will take effect on May 1, 2026, with customers who place deposits on or before April 30 unaffected.

According to public information, the God's Eye system is BYD's fully in-house developed advanced intelligent driving assistance solution, currently available in three tiers — A, B, and C — covering vehicles across different price segments. The God's Eye B version subject to this price adjustment is positioned for mid-to-high-end intelligent driving, equipped with core sensors including LiDAR, and capable of advanced features such as urban navigation-assisted driving.

From an industry perspective, this price increase reflects the cost pressures smart driving faces from upstream supply chains. Global storage chip prices have been climbing steadily since early 2025, and advanced smart driving systems' reliance on high-capacity, high-performance storage has driven up overall BOM costs. This also suggests that the push toward making intelligent driving more affordable may encounter resistance in the near term.

Industry Insight: AI Technology's Dual-Track Trajectory

Viewing these two stories together reveals AI technology accelerating along two distinctly different paths.

On one hand, large-model companies like Google and OpenAI are rapidly expanding into national defense and security, with the transformation of AI from civilian tools to military assets proceeding faster than expected. On the other hand, smart driving players like BYD are searching for a balance between cost and user experience, with the road to mass adoption still subject to real-world supply chain challenges.

Whether it's cloud-based large models or edge-side smart driving systems, the large-scale deployment of AI is inseparable from hardware infrastructure support. Supply and demand shifts in core components — storage, computing power, and sensors — will continue to influence AI product pricing strategies and market dynamics for a considerable time to come.

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