Defense Department Threatens to Cancel Anthropic's Contract

Defense Secretary Pete Hegseth gave Anthropic Chief Executive Dario Amodei three days to comply with the Pentagon’s demands on using its artificial-intelligence models or face cancellation of the company’s contract, people familiar with the matter said. If Anthropic doesn’t show more flexibility working with the military, Hegseth said he could also label the company a supply-chain risk, a move typically reserved for overseas companies linked to foreign adversaries, or invoke the Defense Production Act to essentially force the company to work more collaboratively with the Pentagon.