Anthropic CEO Dario Amodei has reportedly reopened negotiations with the United States Department of Defense in a last-minute effort to maintain access to Pentagon contracts and avoid being designated a supply chain risk by the administration of Donald Trump.
Anthropic seeks new deal with Pentagon
According to a report by the Financial Times, Amodei has been in discussions with Emil Michael, the US undersecretary of defense for research and engineering, to finalize conditions governing how the military can use Anthropic’s artificial intelligence models.
🚨 BREAKING: The Pentagon and Anthropic are back at the table discussing AI again, according to FT.
This last-ditch effort aims to prevent Anthropic from being officially labeled a “supply chain risk” and banned from government work.
Dario Amodei, the CEO of Anthropic, is… pic.twitter.com/Scn839LqXF
— Rohan Paul (@rohanpaul_ai) March 5, 2026
A revised agreement would allow the Pentagon to continue deploying the company’s technology while potentially preventing a formal risk designation. Such a label could require contractors within the defence supply chain to sever ties with Anthropic.
The renewed negotiations come after talks between both sides collapsed last week. Reports indicated tensions escalated during the discussions, with Michael allegedly accusing Amodei of dishonesty as the parties disagreed on safeguards surrounding the use of Anthropic’s AI systems.
Surveillance clause becomes key sticking point
The breakdown reportedly centred on a clause related to the “analysis of bulk acquired data,” which Anthropic insisted should remain in the agreement.
In an internal memo to employees cited by the Financial Times, Amodei said the clause was designed to prevent the company’s AI models from being used for potential mass domestic surveillance. Anthropic has also maintained strict restrictions on applications involving lethal autonomous weapons.
Near the end of negotiations, the Pentagon reportedly offered to accept most of Anthropic’s broader terms if the company removed the data-analysis clause, a condition the firm resisted.
Amodei also criticized rival AI developer OpenAI and its chief executive Sam Altman over their approach to defense partnerships. He described OpenAI’s dealings with the Defense Department as “safety theater.”
The dispute intensified after Pete Hegseth, the US defense secretary, warned that Anthropic could be formally labeled a supply chain risk, effectively excluding the company from future military procurement networks.
Despite the standoff, Anthropic already maintains significant ties with the defense sector. In July 2025, the company secured a contract worth up to $200 million from the Defense Department and became the first AI provider whose models were approved for classified environments used by national security agencies.
Additionally, Anthropic is reportedly in talks to raise as much as $10 billion in a new funding round that would value the company at around $350 billion.
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