Defense Secretary Pete Hegseth has given Anthropic, the AI company behind the chatbot Claude, until Friday to agree to unrestricted military use of its artificial intelligence model or face the loss of a $200 million Pentagon contract and potential blacklisting from future federal work.
The ultimatum, delivered during a meeting Tuesday between Hegseth and Anthropic CEO Dario Amodei, centers on “guardrails” Anthropic has placed on Claude, preventing its use in the development of AI-controlled weapons and mass domestic surveillance, according to two sources familiar with the discussions. The Pentagon wants the company to lift those restrictions, allowing the military to utilize the model for “all lawful use.”
Hegseth echoed his position on X, criticizing Anthropic and Amodei for what he termed a “cowardly act of corporate virtue-signaling” that prioritized “Silicon Valley ideology above American lives.” He accused the company of attempting to exert “veto power over the operational decisions of the United States military.”
According to a Pentagon official, Anthropic has until 5:01 p.m. On Friday to “get on board or not.” Should the company refuse, Hegseth intends to invoke the Defense Production Act, compelling Anthropic to work with the Pentagon regardless of its objections, and designate the company as a supply chain risk.
The Defense Production Act, a Korean War-era law, allows the government to influence businesses in the interest of national defense. It was notably used by the Trump administration during the COVID-19 pandemic to accelerate vaccine production.
Anthropic maintains that current AI technology is unreliable for weapons systems and that legal frameworks governing AI-driven mass surveillance are lacking. Amodei reportedly reiterated these concerns during Tuesday’s meeting with Hegseth, according to a source familiar with the discussion.
The potential disruption of severing ties with Anthropic is significant. Claude is reportedly used within the military’s classified systems, supporting sensitive intelligence work, weapons development, and operational planning. The Defense Department is reportedly preparing to require defense contractors to certify they are not using Claude, allowing a six-month transition period.