The dispute highlights a fundamental clash between the tech industry’s ethical guardrails and the government’s desire for military dominance. Anthropic, which markets itself as the industry’s most “safety-forward” firm, has long resisted allowing Claude to be used for mass surveillance or autonomous weapons systems – specifically those capable of “kinetic operations” that use AI to kill without human intervention.
The Pentagon’s top brass has made it clear that they view Anthropic’s restrictions as unacceptable roadblocks. According to senior officials, if CEO Dario Amodei does not yield by Friday, the DoD has threatened to cancel its massive $200 million contract and formally designate Anthropic a “supply chain risk.”
Furthermore, Hegseth suggested he would invoke the Defense Production Act, a Korean War-era law that could compel the company to prioritize government requirements on national security grounds.
Emil Michael, the Pentagon’s chief technology officer, has publicly urged Anthropic to “cross the Rubicon,” arguing that if a company profits from government contracts, its guardrails must be tuned to lawful military use cases. “The Pentagon’s position is that Anthropic should have no say in how the Pentagon uses its products,” noted a senior official.
Emerging AI Arms Race
The ultimatum follows a month of heightened scrutiny after the US military reportedly utilized Claude, via a partnership with data firm Palantir, to assist in the capture of Venezuelan leader Nicolás Maduro. While Anthropic was the first tech company approved for use in the military’s classified networks, it now finds itself isolated among its peers.
Rivals OpenAI and Elon Musk’s xAI have already agreed to the government’s terms, with OpenAI reportedly permitting its models to be used for “all lawful purposes.” On Monday, the DoD finalized a deal to allow xAI’s chatbot into classified systems, further weakening Anthropic’s bargaining position.
The Trump administration has vowed to win a global AI arms race, accelerating the integration of machine learning into everything from unmanned drones to automated targeting systems.
As the Friday deadline approaches, the outcome of this standoff will likely set a precedent for whether private AI firms can maintain ethical red lines, or if the “Department of War” will successfully mandate unfettered access to the world’s most powerful cognitive tools.