Clearview betting on political ties to grow federal contracts

When Hal Lambert, a Republican political financier with longstanding ties to conservative circles, was announced as co-CEO of Clearview AI alongside Richard Schwartz early this year, it signaled a new era for the controversial company. Lambert’s appointment was not a quiet reshuffling, either. It was a deliberate move that was intended to recalibrate Clearview’s public image and to aggressively expand its business footprint within the federal government.

Long a lightning rod for controversy over its scraping of billions of publicly available images to fuel its facial recognition database, Clearview has struggled for mainstream commercial acceptance. Lawsuits, regulatory inquiries, and public backlash throughout had forced the company to pivot almost exclusively toward law enforcement and government contracts, a strategy that underpins its survival today.

By late 2024, however, Clearview found itself stagnating. Although it secured modest contracts with federal agencies like the Federal Bureau of Investigation and the Department of Homeland Security (DHS), it remained a company with potential rather than a dominant player in government technology procurement.

Lambert’s installation as co-CEO reflected a clear recalibration toward a more politically embedded strategy. Lambert’s fundraising ties to high-ranking Republican officials, coupled with Schwartz’s earlier experience in New York City governance under Mayor Rudy Giuliani, suggested a leadership team that would court federal agencies not merely through technology pitches, but also through their political ties. Lambert served on Trump’s Inaugural Committee and his investing company, Point Bridge Capital, offers what it brands as a “MAGA” fund in which clients can “invest in companies that align with your Republican political beliefs.”

Early statements from Lambert emphasized not only Clearview’s technological capability, but also the necessity, in his view, of a strong surveillance infrastructure to safeguard national security.

Since the leadership change, Clearview has aggressively sought to build on its existing government relationships. Currently, it holds a $335,000 contract with the FBI that was slated to end in February, and a larger $1.1 million contract with DHS’s Homeland Security Investigations that’s slated to expire in September. A separate $2.3 million contract with Immigration and Customs Enforcement ended last year. These contracts, while relatively small by federal procurement standards, gave Clearview a foothold that Lambert and Schwartz clearly hope to expand on.

One notable step forward is Clearview’s recent inclusion in the Department of Defense’s (DOD) Tradewinds Solutions Marketplace. This platform, designed to expedite innovative technologies into DOD usage, evaluates companies through a rigorous assessment process and awards an “Awardable” status to those it deems suitable for future contracts.

Clearview achieved this designation in April, opening the door for its facial recognition technology to be considered for streamlined acquisitions across the defense enterprise. While inclusion in the Tradewinds Marketplace does not guarantee new contracts, it does dramatically shorten the procurement process should a military or intelligence component choose to acquire Clearview’s services.

This inclusion is significant because it marks the first time Clearview has been formally recognized as an “awardable” entity by DOD, and signals growing institutional acceptance despite longstanding concerns on the part of civil liberties advocates. It also reflects a broader trend in the Trump administration’s second term, which has been characterized by aggressive expansion of AI-driven surveillance programs, often with minimal public transparency or legislative oversight.

Nevertheless, as of late April, no major new federal contracts have been publicly announced since Lambert and Schwartz took the reins. Clearview’s status within the Tradewinds Marketplace represents opportunity rather than fulfillment. While Clearview continues to engage aggressively with federal agencies behind the scenes — pitching expanded usage of its database for immigration enforcement, border security, cybersecurity identity verification, and even counterintelligence purposes — these overtures have yet to materialize into publicly awarded contracts.

Several factors may be constraining Clearview’s ambitions despite the leadership change. First, the company’s reputation remains a significant liability. Multiple states, including California, Vermont, and Illinois, have active litigation against Clearview, and regulatory scrutiny has not subsided.

While Lambert’s political connections may help to mitigate reputational damage within certain federal circles, agencies remain wary of adopting technologies that could expose them to significant legal or political blowback, particularly when civil liberties groups continue to closely monitor government surveillance practices.

Second, Clearview’s profitability remains elusive. In 2024, the company reported approximately $16 million in annual recurring revenue, a modest sum given its outsized public presence and ambitions. The company’s reported expenditures on legal defense, marketing, and lobbying efforts have consumed much of its revenue growth.  Although Clearview is not unique among AI startups in prioritizing growth over short-term profit, its financial position constrains its ability to invest aggressively in developing products specifically tailored to government use cases.

Another complicating factor is the Biden-era regulatory frameworks that remain partially intact. Although the Trump administration has rolled back several executive orders pertaining to AI ethics and oversight, federal acquisition regulations and emerging guidance around algorithmic accountability still create barriers for deploying facial recognition technologies at scale within sensitive domains like DOD, the Intelligence Community, and civilian law enforcement.

Despite these challenges, Clearview under Lambert and Schwartz is unlikely to retreat from its federal ambitions. Indeed, the company appears to be broadening its strategy beyond traditional law enforcement applications. Sources close to Clearview reportedly have suggested that the company is in early-stage conversations with elements of the Department of State regarding identity verification programs for refugee processing and border control initiatives. There are also indications that Clearview has pitched pilot programs to the Department of Health and Human Services related to fraud detection in benefits programs.

Meanwhile, Clearview continues to build its footprint among state and local law enforcement agencies where it faces less scrutiny and where Lambert’s political connections at the state level — particularly among Republican-controlled states — may yield more immediate dividends. This strategy ensures that even in the absence of major federal breakthroughs, Clearview maintains operational revenue and a growing base of users.

Ultimately, the replacement of former CEO Hoan Ton-That with the Lambert-Schwartz team represents more than just a change in management style. It reflects a conscious decision to entrench Clearview AI within the political architecture of the Trump administration, leveraging connections and ideology as much as technology to expand its market share. While the fruits of this strategy have yet to result in major new contracts, the groundwork is clearly being laid.

Article Topics

biometric database  |  biometrics  |  Clearview AI  |  facial recognition  |  law enforcement  |  U.S. Government