Controversy over AI terms heats up, US Department of Defense threatens to terminate Anthropic military contract.

According to sources familiar with the matter, the Pentagon has issued a warning to Anthropic PBC that it will terminate its military contract with the company on Friday if it fails to meet the government's terms for the use of its technology. The sources revealed that in a meeting on Tuesday between CEO Dario Amodei and Defense Secretary Pete Haggis, US officials threatened to classify Anthropic as a supply chain risk, or invoke the Defense Production Act to force the use of the company's artificial intelligence software. This ultimatum marks a continued escalation of the dispute between the Department of Defense and the AI startup, as Anthropic insists on setting boundaries for the use of its Claude AI tool. If the Pentagon follows through on the threat, Anthropic's previously agreed upon projects for the military, valued at up to $200 million, will be at risk. One source stated that Amodei outlined Anthropic's conditions during the meeting: the US military must not use its products to autonomously target enemy combatants, or conduct large-scale surveillance on American citizens. The source reported that Amodei emphasized that these scenarios have not yet occurred in practice. In a statement following the meeting, Anthropic said, "We continue to have sincere discussions about usage policies to ensure that Anthropic can continue to support the government's national security missions within the bounds of reliable and responsible capabilities."