Google has signed a deal with the Pentagon allowing the use of its artificial intelligence models on classified systems, setting up a showdown with hundreds of employees who have demanded that CEO Sundar Pichai resign from the contract. The deal allows the Pentagon to use Google’s AI for “any lawful government purpose” and could create new internal challenges for Google. The employees warned that the company's reputation, business, and role in the world could be severely damaged if they did not reject classified workloads. The agreement is an update to Google's existing contract allowing its models to be used in non-classified military settings.