Pentagon gives Anthropic until Friday to remove military restrictions on Claude AI model or face contract termination and Defense Production Act.

The company's Claude chatbot is one of the few AI systems cleared for use in classified settings. But a standoff between Anthropic and the Trump administration is putting its government work at risk.

The Pentagon warned it could cancel Anthropic's contract, designate it a supply chain risk or invoke the Defense Production Act if the company doesn't comply by Friday.

Defense Secretary Pete Hegseth warned Anthropic boss Dario Amodei that he has until Friday evening to remove restrictions on how the US military can use its Claude AI chatbot – or potentially face major penalties.

The defense secretary has threatened to cancel the AI startup’s Pentagon work and designate the company as a supply chain risk, according to a person granted anonymity to describe sensitive talks.

Anthropic and the Pentagon clash over military AI use, exposing legal, ethical and national security tensions shaping the future of AI in warfare.

Over the last week, tensions between the Pentagon and artificial intelligence giant Anthropic have reached a boiling point.

The Pentagon's deal with Anthropic is in jeopardy due to the company's reservations about the use of its AI technology in the Maduro raid, highlighting the challenges of integrating AI into military operations.