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Anthropic doesn’t want Claude controlling autonomous weapons. The Pentagon may not give them a choice.

A looming Friday deadline to get onboard with the Pentagon’s demands could lead to an unraveling of years of the company’s work with the government.

Jon Keegan

Damned if you do, damned if you don’t.

Anthropic faces a difficult decision by Friday after a tense meeting this week between CEO Dario Amodei and Defense Secretary Pete Hegseth at the Pentagon.

After it was revealed that Anthropic’s Claude was used to help plan the attack on Venezuela that led to the capture of President Nicolás Maduro, Amodei reportedly reached out to its partner Palantir to push back on the defense contractor’s use of its AI to plan the deadly attack. Anthropic has stood alone as the only major AI vendor that prohibits using its tools for surveillance or “battlefield management,” causing the White House to grow increasingly frustrated with the company.

According to reporting from the New York Times, “Anthropic told defense officials that it did not want its A.I. used for mass surveillance of Americans or deployed in autonomous weapons that had no humans in the loop.”

During the meeting this week, Hegseth allegedly gave Amodei a Friday deadline to get onboard with the Pentagon. Per the report, if the company does not yield on its restrictions, Hegseth threatened two possible penalties: Hegseth could declare Anthropic’s Claude essential to national security and force the company to make changes under the Defense Production Act, or Anthropic could be declared a “supply chain risk,” effectively blacklisting the company for national security use.

Anthropic finds itself in this unenviable position after a year of actively seeking out government work, including in national security applications.

Here’s a timeline of the announcements that show the effort Anthropic has made to push Claude for use by the Pentagon and other government agencies.

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Google will supply AI models to Pentagon in classified deal, per The Information

Google has become the latest tech company to ink an agreement to supply the Department of Defense (War) with AI, having reportedly closed a classified deal that allows the Pentagon to use its AI for “any lawful government purpose,” according to The Information.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with the Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with the Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

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Microsoft loses exclusive access to OpenAI’s models and tools while ending revenue-sharing deal with ChatGPT maker

Microsoft shares dropped as it announced a revised agreement with OpenAI.

The amended agreement ends revenue-sharing payments from Microsoft to OpenAI, and also ends Microsoft’s exclusive access to OpenAI’s intellectual property (i.e. models and products).

OpenAI’s revenue sharing with Microsoft will end in 2030, is subject to a total cap, and is no longer dependent on its achieving artificial general intelligence.

Amazon, a likely beneficiary of this lack of exclusivity, initially popped on the news but erased those gains.

This is a developing story.

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Rani Molla

China just blew up one of Meta’s key AI bets

China has ordered Meta to unwind its $2 billion acquisition of Manus, a Chinese startup (since relocated to Singapore) that makes AI agents and was central to Meta’s push to turn its massive AI investments into a real business. The move is part of the Chinese government’s effort to stop US firms from gaining access to Chinese talent and intellectual property, as Washington continues to restrict sales of advanced AI chips to Chinese companies.

Unlike its tech peers, which can sell AI through cloud services, Meta mainly uses AI to improve its existing ad business rather than as a stand-alone revenue driver. The decision strips away one of Meta’s clearest paths to monetizing AI — leaving it spending like a hyperscaler, without a hyperscaler business model.

Unlike its tech peers, which can sell AI through cloud services, Meta mainly uses AI to improve its existing ad business rather than as a stand-alone revenue driver. The decision strips away one of Meta’s clearest paths to monetizing AI — leaving it spending like a hyperscaler, without a hyperscaler business model.

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