• Pentagon threatens to blacklist Anthropic if it doesn't remove AI usage safeguards.
• Anthropic's CEO asserts that the company won't compromise on ethical standards.
• Dispute centers on concerns over mass surveillance and autonomous weapons.
• Deadline for negotiations is set for Friday afternoon, with severe consequences looming.

Pentagon officials have issued a stern ultimatum to Anthropic, demanding the company acquiesce to unrestricted military use of its AI, Claude, by a deadline of 5:01 PM on Friday. Failure to comply could result in the loss of its $200 million contract and designation as a supply chain risk, according to sources familiar with the discussions. Defense Secretary Pete Hegseth has threatened to invoke the Defense Production Act, compelling Anthropic to relax its restrictions on the use of its AI technology in military operations, which includes concerns over mass surveillance and autonomous weaponry, according to CBS News and NPR.

Anthropic's CEO, Dario Amodei, has publicly rejected the Pentagon's demands to remove safeguards that prevent the AI from being used for mass surveillance or making autonomous targeting decisions in military operations. He reiterated that these functionalities pose ethical concerns and could undermine democratic values, stating, "We cannot in good conscience accede to their request," according to Reuters and Le Monde.

The Pentagon has stated that its intention in leveraging Anthropic's AI is strictly lawful and that any obligations should not rest solely on the shoulders of private contractors. Officials emphasized that the military retains responsibility for legal applications of its technology. This disagreement highlights broader concerns regarding how AI should be deployed to maintain national security without sacrificing ethical standards, as detailed in reports from BBC and CBS News.

As negotiations unfold, Anthropic's refusal to comply has raised questions about its future with the Pentagon, especially given the firm's competitive position in AI technology. The looming deadline has created tension within the military's supply chain, and if Anthropic's contract is not maintained, it may lead to legal disputes over the Pentagon's attempts to enforce compliance, as warned by analysts discussing potential ramifications, according to NPR.