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AI NewsAt TechCrunch Disrupt 2026: Databricks’ co-founder on what kills enterprise AI deals

At TechCrunch Disrupt 2026: Databricks’ co-founder on what kills enterprise AI deals

11:07 PM IST · May 28, 2026

At TechCrunch Disrupt 2026: Databricks’ co-founder on what kills enterprise AI deals

Enterprise organizations are not rejecting AI. They are rejecting operational instability. That is the shift many founders still misunderstand — and it is becoming one of the defining realities separating enterprise AI companies that scale from the ones that stall after early momentum. For the last several years, AI startups benefited from a market driven by experimentation. A strong demo, an impressive model, and a powerful vision were often enough to generate enterprise interest, pilot programs, and investor enthusiasm. But enterprise AI is entering a different phase now, one where enterprises are no longer evaluating whether AI is exciting. They are evaluating whether it is safe to deploy broadly. AtTechCrunch Disrupt 2026,taking place October 13–15 at Moscone West in San Francisco,Arsalan Tavakoli-Shiraji, co-founder and SVP of field engineering at Databricks, will unpack that shift during his AI Stage session, “The Enterprise Isn’t Broken. Your Assumptions About It Are.” Disrupt will bring together 10,000+ founders, investors, and operators to explore the technologies and operational pressures changing how companies are built and scaled. The three-day event will feature 250+ sessions across six stages, led by tech leaders directing the industry today. Explore the sessions appearing on the Disrupt AI Stage.Ticket savings of up to $410 end on May 29 at 11:59 p.m. PT.Register here. The enterprise AI market is full of successful pilots that never became real deployments. Not because the technology failed. But because the organization could not absorb the operational consequences of adopting it. Now the reality founders need to face is that startup AI deals rarely die because the model underperformed. They die because the enterprise lost confidence in what the deployment would require. That is the gap Tavakoli-Shiraji’s session is designed to explore. Most enterprises are not simply evaluating whether an AI product works. They are evaluating: An AI product can perform exceptionally well in a controlled environment and still fail commercially if its deployment creates instability within the business. That distinction is important to founders because many AI startups are still optimizing for the wrong outcome. They are building for initial excitement rather than long-term operational adoption. And enterprises are becoming far more disciplined about recognizing the difference. Register for Disrupt to hear how enterprise AI leaders evaluate what actually survives beyond the pilot phase.Lock in your ticket savings of up to $410when you register by May 29 at 11:59 p.m. PT. The AI startups gaining traction inside large organizations increasingly share one thing in common: They reduce uncertainty. They integrate more cleanly into existing systems. They create less workflow friction. They are easier to govern, easier to explain internally, and easier for organizations to trust over time. That sounds less exciting than breakthrough demos or model benchmarks. But it is quickly becoming the difference between AI startups that generate attention and those that generate durable revenue. The market is maturing. Enterprise buyers are asking different questions now: Those concerns are no longer secondary. In many organizations, they have become core to the buying decision itself. For AI founders selling into the enterprise, this session breaks down what actually drives adoption after the pilot phase ends.Check out the session detailsandget your $410 ticket savingsto learn what to prioritize to gain traction with enterprise AI deals. Tavakoli-Shiraji brings an unusually relevant perspective to this conversation because his background spans both enterprise strategy and deeply technical systems architecture. Before joiningDatabricks, he was an associate principal at McKinsey & Company, advising enterprises, technology vendors, and public-sector organizations on cloud computing, next-generation IT, and enterprise transformation strategy. He also earned a PhD in computer science from UC Berkeley, focused on networking and distributed systems. That lens is valuable to startups because enterprise AI success increasingly depends on more than strong engineering alone. Founders now need to understand how technical systems interact with organizational behavior, infrastructure realities, procurement processes, governance concerns, and operational risk. The startups that succeed in enterprise AI over the next several years may not necessarily be the ones with the most advanced models. They may be the ones that best understand how enterprises actually absorb change. That is the kind of operational pressure that Tavakoli-Shiraji and other speakers on theAI Stage at Disruptwill explore. Presented by Google Cloud, the stage examines how AI agents and generative AI are reshaping SaaS, enterprise adoption, software economics, security, and operational infrastructure — including Tavakoli-Shiraji’s session on why enterprise AI success increasingly depends on operational trust rather than simply technical performance. Across the stage, founders will learn how and why the focus is shifting away from AI novelty and toward the real-world challenges of deploying, governing, and scaling AI systems inside real organizations. Explore the Disrupt agendaand learn how founders, investors, and enterprise operators are managing the next phase of AI adoption.Register by May 29 at 11:59 p.m. PT to save up to $410 on your passes.

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Encryption, spyware, and now Mythos: History shows why cyber export control doesn’t work

Encryption, spyware, and now Mythos: History shows why cyber export control doesn’t work

Last Friday, citing unspecified national security concerns, the White Houseordered Anthropicto restrict the export of its powerful AI models Fable and Mythos to anyone outside of the United States, as well as foreign nationals inside the country. Shortly after, the AI giant hastily pulled the plug on both models, which have now been unavailable to anyone for a week. The episode is the first real test of whether the U.S. government can use export controls to contain frontier AI the way it has tried, with very uneven results, to contain encryption and spyware before it. And dramatic as it may sound, how this standoff gets resolved could shape not just Anthropic’s access to foreign markets but the rulebook that other AI labs will have to build around. Some context first.Ever since Anthropic launched Mythos in April, the company has marketed it assome kind of Doomsday cyber machinethat could wreak havoc on the internet if released too widely — which is why, before the ban,only around 150 vetted companies and government organizationshad access to it at all. The goal was helping defenders secure their software and services before the bad guys could reach Mythos-like capabilities. So what triggered the ban? Two subsequent events, reportedly. The first: Anthropic gave a South Korean telecom access to Mythos through its limited partner program, and U.S. officials grew alarmed after identifying the company as one they suspected had ties to China. (The company,widely reportedto be SK Telecom, hasdeniedany China connection.) Amazon CEO Andy Jassy also reportedlyalerted the administrationafter Amazon’s own researchers, he said, found a way around Fable 5’s safeguards. Anthropic disputes the “jailbreak” label, calling it a narrow, already-patched issue rather than a wholesale defeat of the model’s safety measures. The result was the same: the Commerce Department issued an export control directive, and Anthropic had to scramble to immediately limit access to its products — within roughly 90 minutes of being notified, by some accounts. None of this is new, though. Governments have tried to use export controls to limit the proliferation of what they see as dangerous cyber technology for decades, but their track record has been middling at best. The U.S. government was behind what is perhaps history’s most spectacular failure of this approach in the early to mid-1990s. At the time, computer scientists were developing encryption technologies to secure data as it traveled over the internet. One of those encryption products was called Pretty Good Privacy, or PGP, a popular software that could encrypt data and make it virtually impossible to unscramble even if intercepted as it traveled to its intended recipient over the internet. The U.S. government initially saw PGP as a dangerous weapon, fearing it would prevent its intelligence agencies from snooping on emails as they crossed their wires. To stop the distribution of PGP, the U.S. Customs Serviceopened a criminal investigationagainst PGP’s creator Phil Zimmermann for allegedly violating arms export controls. He fought back by publishing PGP’s source codeas a printed book, igniting what is known today as the “Crypto Wars.” Zimmermann later won a key battle when the investigation was closed, paving the way for crucial end-to-end encryption algorithms such as the one used by billions of Signal and WhatsApp users. Later during the early 2010s, researchers began discovering Western-made spyware used against dissidents in the Middle East. In response, several governments agreed to expandthe Wassenaar Arrangement, an international treaty that limits the export of dual-use software and technologies that are used in both civilian and military applications. The idea was to classify surveillance and hacking software as dual-use, thus forcing spyware makers to get export licenses to sell their products abroad. Contact UsDo you have more information about the Mythos ban? From a non-work device and network, you can contact Lorenzo Franceschi-Bicchierai securely on Signal at +1 917 257 1382, or via Telegram and Keybase @lorenzofb, oremail. But Wassenaar has always had two inherent weaknesses. There are several countries that don’t adhere to the agreement, including Israel, which houses some of the world’s most active spyware makers. The agreement also depends on countries applying it to companies within their borders at their own discretion. For a time, the Italian government allowed one of the country’s then-top spyware makers, Hacking Team, a license to export its tools around the world, despite the company’s track record of selling spyware tooppressivegovernmentsthatused itto hack journalists and human rights activists. Since then,othercountriesin Europe have been lax with spyware makers like Italy. Despite numerous scandals, Europe, home tomany spyware and hacking tools makers, hascontinually failed to curb the export of spywareto authoritarian regimes. Critics say that a recently renewed effort across the bloc of 27 member states to tackle its growing problem of spyware exports to authoritarian states “does not go far enough.” Several spyware makers, such as Intellexa, a sanctioned consortium of spyware companies,  have simply moved their operations to countries with lax export controls. Other spyware makers sought to move their operations to Saudi Arabia for similar reasons. There have been some wins. Germany-based spyware maker FinFishershut down in 2022after a multi-year investigation by German prosecutors into the company forallegedly selling spywareto Turkey without an export license. Investigators previously found the FinFisher spyware had beendeployed on the phonesof critics of Turkey’s government. As of the time of writing, the impasse between Anthropic and the Trump administration remains. There is a reasonable chance the administration will buckle and lift the restriction in the interest of keeping American AI companies competitive worldwide — a move that would amount to tacit acknowledgment that AI labs elsewhere, including in China, will likely reach similar capabilities regardless of what the U.S. restricts. Or, American AI companies could end up needing government approval before serving foreign customers at all, a compliance burden that would invariably dent their bottom line. Given the past experiences that world governments have had with trying to control the reach of software, government-mandated export controls are unlikely to be the right approach to stop malicious actors from abusing powerful dual-use cyber technologies.

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Billionaire Ambani wants AI in every call, app, and home

Billionaire Ambani wants AI in every call, app, and home

As India searches for a homegrown contender in the global artificial intelligence race, billionaire Mukesh Ambani is positioning Reliance Industries as a national champion, rolling out AI services for phone calls, mobile apps, and connected homes. At itsannual shareholder meetingon Friday, the Mumbai-based conglomerate announced Jio Call Agent, an AI assistant that can join phone calls to transcribe conversations, generate summaries, and perform tasks such as booking cabs, ordering food, and making reservations. The service, which can be activated by saying “Hey Jio,” is expected to launch later this year for Jio’s more than 500 million users. By embedding the service directly into its telecom network rather than offering it as a stand-alone app, Jio is betting AI assistance can become a native feature of phone calls. The approach could reduce consumers’ reliance on third-party call-assistant apps and give Reliance a powerful distribution advantage in an increasingly crowded AI market. Reliance also unveiled an AI-powered version of its MyJio app that can perform tasks on behalf of users, from activating eSIMs to selecting roaming plans, through natural-language requests. The company further introduced TeleFrame, a home display that uses AI agents to proactively surface information and recommendations, such as weather alerts, schedules, and household reminders. The product appears to echo a broader industry push toward ambient AI assistants for the home, an area being explored by companies such asAmazonandGoogle. The announcements mark the next phase of Reliance’s AI ambitions as India seeks to build domestic capabilities in a field largely dominated by U.S. and Chinese technology companies. The push follows thelaunch of Reliance Intelligencelast year, through which the conglomerate aims to develop AI infrastructure and services for consumers, businesses, and governments, including applications that support 22 Indian languages. “India should not be a mere consumer of AI created elsewhere. It must become a creator, adopter, and a global leader in AI,” Ambani, age 69, said. Reliance has been ramping up its AI ambitions through partnerships withGoogle,Meta, andNvidia. Earlier this year, the company announced plans toinvest $110 billion in AI infrastructureas it seeks to establish itself as a major player in India’s emerging AI ecosystem. At the shareholder meeting, Reliance also unveiled a suite of AI services for healthcare, education, agriculture, and small businesses. The products, branded JioHealthIQ, JioLearnIQ, JioKrishiIQ, and AI Vyapar, are designed to operate across multiple Indian languages and cater to local needs, the company said. The shareholder meeting also brought a major development for investorsawaiting Jio’s stock market debut. Ambani said Jio Platforms’ board had approved a draft prospectus for an initial public offering that would include a fresh issue of up to 270 million shares, according to a stock exchange filing. The announcements also raise questions about how Reliance will handle user data as it expands AI services across phone calls, mobile apps, and connected homes. While the company said the services would operate with user consent, it did not answer questions about whether data generated through the products could be used to train AI models or shared with technology partners. Reliance’s AI ambitions come as Indian companies remain heavily reliant on foreign AI models and cloud providers.Recent restrictions on accessto some of Anthropic’s latest models have underscored that dependency, showing how decisions made overseas can affectstartups and businessesbuilding AI products in India — the kind of supply-chain risk that’s pushing Indian conglomerates toward building their own stack rather than renting someone else’s. Last week, Reliance announced acollaboration with Meta to establish an AI data centerin the western state of Gujarat, building on Meta’s earlier investment in Jio Platforms and a joint venture launched last year to develop AI solutions for enterprise customers in India and overseas markets. Reliance is not alone in pursuing AI opportunities.Tata Consultancy Services,Infosys, and rivalAdani Grouphave also expanded their AI initiatives and partnerships with global players, including Anthropic, Google, and OpenAI, as India’s largest corporations race to secure a leading role in the country’s AI future. Nonetheless, for Reliance, the stakes are particularly high; it’s preparing Jio for a long-awaited stock market debut and needs new growth drivers, with the conglomerate’s shares down about 17% this year.

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The US banned Anthropic’s Fable 5 release, but the numbers don’t seem to care

The US banned Anthropic’s Fable 5 release, but the numbers don’t seem to care

Just as last week was ending, the US governmentforced Anthropic to pull its two newest models, Fable 5 and Mythos 5, citing national security concerns after Amazon researchers allegedly found a way to bypass Fable 5’s guardrails. Cybersecurity researchers havesince signed an open lettercalling the move dangerous, and Anthropic itself noted the same jailbreaks exist in other models. So is this a genuine security concern, or just the latest chapter in a messy relationship between Anthropic and the Trump administration? On this episode of TechCrunch’sEquitypodcast, hosts Anthony Ha, Sean O’Kane, and Rebecca Bellan unpack what the ban means for developers building on Anthropic’s platform and for anyone watching the IPO, why itmight accidentally be good for the company, and more of the week’s headlines. Listen to the full episode to hear more about: Subscribe to Equity onYouTube,Apple Podcasts,Overcast,Spotifyand all the casts. You also can follow Equity onXandThreads, at @EquityPod.

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Is the US government’s Anthropic ban accidentally helping the brand?

Is the US government’s Anthropic ban accidentally helping the brand?

Loading the player… Just as last week was ending, the US governmentforced Anthropic to pull its two newest models, Fable 5 and Mythos 5, citing national security concerns after Amazon researchers allegedly found a way to bypass Fable 5’s guardrails. Cybersecurity researchers havesince signed an open lettercalling the move dangerous, and Anthropic itself noted the same jailbreaks exist in other models. So is this a genuine security concern, or just the latest chapter in a messy relationship between Anthropic and the Trump administration? On this episode of TechCrunch’sEquitypodcast, hosts Anthony Ha, Sean O’Kane, and Rebecca Bellan unpack what the ban means for developers building on Anthropic’s platform and for anyone watching the IPO, why itmight accidentally be good for the company, and more of the week’s headlines. Subscribe to Equity onYouTube,Apple Podcasts,Overcast,Spotifyand all the casts. You also can follow Equity onXandThreads, at @EquityPod.

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