A public dispute has erupted between the Pentagon and AI company Anthropic over ethical parameters for military use of the AI chatbot Claude. Defense Secretary Pete Hegseth issued an ultimatum to Anthropic CEO Dario Amodei, demanding unrestricted AI use by Friday, threatening severe business repercussions.

Amodei, however, stated Anthropic "cannot in good conscience accede," setting a firm ethical boundary just 24 hours before the deadline.

Anthropic, a rapidly growing AI startup, requested guarantees that Claude would not be used for mass surveillance of Americans or fully autonomous weapons. The company criticized the new contract language as containing legal loopholes that would allow safeguards to be bypassed.

The Pentagon, through spokesman Sean Parnell, insisted that it "will not let ANY company dictate operational decisions," while Undersecretary for Research and Engineering Emil Michael accused Amodei of a "God-complex" and alleged he was endangering national security.

The military warned Anthropic of potential consequences, including contract cancellation and designation as a "supply chain risk," which could impact critical partnerships. Officials also cited the possibility of invoking the Defense Production Act, which could compel Anthropic’s cooperation.

Support for Amodei’s ethical stance has emerged from across Silicon Valley, with workers from OpenAI and Google signing an open letter opposing the Pentagon’s demands.

The letter also alleged that the military is negotiating similar unrestricted access with other AI companies, aiming to divide the industry.

Former Air Force Gen. Jack Shanahan, previously leading Project Maven, praised Anthropic’s red lines as "reasonable," noting Claude’s existing use in classified government settings.

Shanahan warned that AI large language models are “not ready for prime time in national security settings,” especially regarding autonomous weapons.

Despite Pentagon assurances that AI will not be used for mass surveillance or fully autonomous weapons, specifics remain unclear. Amodei emphasized that if no agreement is reached, Anthropic will ensure a smooth transition to an alternative provider, maintaining both ethical and operational integrity.