The Pentagon previously requested Anthropic, OpenAI, Google, and xAI allow the use of their AI models for “all lawful purposes,” to which Anthropic put up the most resistance over fears its AI models could be used for autonomous weapons systems and mass domestic surveillance.

American AI company Anthropic has until 5:01 pm ET to give in to the Pentagon’s demands or face being labeled a “supply chain risk,” a type of designation usually reserved for companies thought to be extensions of foreign adversaries.

The Defense Department has been feuding with Anthropic over military uses of its artificial intelligence tools. At stake are hundreds of millions of dollars in contracts and access to some of the most advanced AI on the planet.

Defense Secretary Pete Hegseth gave the AI company Anthropic an ultimatum about the military's use of its technology, known as Claude.

Anthropic, a company founded by OpenAI exiles worried about the dangers of AI, is loosening its core safety principle in response to competition.

Debates have long swirled around AI and its use in weapons targeting, the idea of no human involvement still an uncomfortable one.