Defense Secretary Pete Hegseth has issued a stern ultimatum to artificial intelligence firm Anthropic: grant the military broad access to its AI models by Friday evening, or face severe repercussions. Sources close to the matter revealed that failure to comply could result in Anthropic being designated a “supply chain risk” or trigger the invocation of the Defense Production Act.
The standoff stems from differing views on AI usage. Anthropic is seeking assurances that its sophisticated AI models, including the well-known Claude family, will not be employed for autonomous weapons systems or the mass surveillance of American citizens. Conversely, the Department of Defense (DoD) insists on the company agreeing to “all lawful use cases” without restriction.
The “supply chain risk” designation is typically reserved for foreign adversaries, but applying it to a domestic tech company would compel DoD vendors and contractors to certify that they are not utilizing Anthropic’s technology. The Defense Production Act, meanwhile, grants the President broad emergency powers to control domestic industries deemed critical for national security.
This deadline was reportedly set during a meeting on Tuesday morning between Secretary Hegseth and Anthropic CEO Dario Amodei. An Anthropic spokesperson confirmed ongoing “good-faith conversations” aimed at aligning the company’s usage policies with the government’s national security objectives, emphasizing responsible AI deployment.
Anthropic, founded in 2021 by former OpenAI researchers, has emerged as a significant player in the AI landscape. Last year, the company secured a $200 million contract with the DoD, making it the sole AI provider cleared for deployment on the agency’s classified networks until recently. Elon Musk’s xAI has since become the second company to gain such access.
The company’s relationship with the current administration has been less than smooth. David Sacks, a venture capitalist now serving as the administration’s AI and crypto czar, has publicly criticized Anthropic, labeling its stance on AI regulation as “woke AI.”
While losing the DoD contract would undoubtedly be a significant setback, Anthropic boasts a strong commercial client base, with over 500 customers reportedly spending more than $1 million annually. The company also recently concluded a substantial $30 billion funding round, valuing it at an impressive $380 billion. This infusion of capital provides a financial cushion as it navigates these critical negotiations.
The stakes are high for both parties. The DoD’s demand for unfettered access highlights its push to integrate cutting-edge AI capabilities into its operations, while Anthropic’s insistence on ethical guardrails underscores the growing debate around the responsible development and deployment of advanced AI technologies. The coming days will be pivotal in determining the future of this crucial partnership and its implications for national security and the broader AI industry.
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