Anthropic said Thursday that “virtually no progress” had been made in the company’s talks with the Pentagon over the terms of use for its AI models ahead of a Friday afternoon deadline. The

AI safety and research company Anthropic has told the Pentagon it will not agree to their demands to drop critical safety precautions and grant the U.S. military full access to their AI capabilities.

The Pentagon's top technology official told CBS News the military has offered compromises to Anthropic, amid a feud over whether its powerful AI technology will be restricted — but Anthropic called the offer inadequate.

As well as designating Anthropic as a supply chain risk, the government could also cancel its contract or invoke a Cold War-era law called the Defense Production Act to give the military more sweeping authority to use its products, even if the company doesn’t approve.

Defense chief Pete Hegseth has threatened to force the company to lift guardrails against greater military use of AI.

WASHINGTON (AP) — The Pentagon’s top spokesman has reiterated that the military wants to use Anthropic’s artificial intelligence technology in legal ways and will not let the company dictate any limits ahead of a Friday deadline to agree to its demands.

The growing clash between the U.S. Department of Defense and artificial intelligence company Anthropic has entered a decisive moment. At the center of the standoff is Pete Hegseth, who has delivered a firm deadline to the San Francisco–based AI startup.