I read the article and I'm not really convinced that something bad is happening here. A lot of the comments here are purporting that something unethical is happening here - in the article I read: “Ultimately, even through negotiations, we were unable to find a pathway that we legally could do and ethically should do,” Simon said. “And the partnership dissolved.” (referring to a previous design proposal). So it seems like there's a rigorous review process here which demonstrably can shut down the project or prevent forward movement if there's something bad happening.
Also, I don't get this spin along the length of the article that Google is somehow bullying the US military around. I mean, I get that narrative when it's Google is working with smaller businesses and using capital as leverage. But do we really think that Google > DoD and that the US Navy is just getting strongarmed around? I choose to think they have agency here and _if_ there's blame (big if), how is it not mostly on the Navy who is holding the data and running the show?