Defense Secretary Pete Hegseth has given artificial intelligence company Anthropic until Friday at 5 p.m. to remove restrictions on military use of its AI technology, according to Pentagon officials. The ultimatum followed a Tuesday meeting between Hegseth and Anthropic CEO Dario Amodei regarding the company's participation in the military's AI network.

Anthropic is the only major AI company among those contracted by the Pentagon that has not fully integrated with the military's GenAI.mil network. While the company was awarded a defense contract worth up to $200 million last summer alongside Google, OpenAI, and Elon Musk's xAI, it has maintained restrictions preventing its Claude chatbot from being used for mass surveillance and fully autonomous weapons systems.

Pentagon spokesman Sean Parnell said Thursday that the military wants to use Anthropic's technology "for all lawful purposes" and will not allow the company to dictate operational limits. He stated the Pentagon has no interest in conducting mass surveillance of Americans or developing autonomous weapons without human involvement, but emphasized that the military will not let any company restrict lawful military applications.

Anthropic CEO Dario Amodei responded Thursday that the company "cannot in good conscience accede" to the Pentagon's demands, saying new contract language from the Defense Department "made virtually no progress on preventing Claude's use for mass surveillance of Americans or in fully autonomous weapons." The company indicated it remains open to negotiation while maintaining its safety-focused approach.

During Tuesday's meeting, Pentagon officials warned they could designate Anthropic as a supply chain risk, terminate its contract, or invoke the Defense Production Act to compel broader use of its technology. The Pentagon has also reportedly asked defense contractors Boeing and Lockheed Martin about their reliance on Anthropic's services as part of the pressure campaign.

The dispute has drawn criticism from lawmakers across party lines. Republican Senator Thom Tillis called the Pentagon's public handling of the matter "unprofessional," while Democratic Senator Mark Warner said he was "deeply disturbed" by reports of the Pentagon attempting to "bully" the AI company. The confrontation highlights broader debates over AI governance and safety measures in military applications.