Pentagon sets Friday deadline for Anthropic to abandon ethics rules for AI — or else

The defense secretary has threatened to cancel the AI startup’s Pentagon work and designate it a supply chain risk, according to a person granted anonymity to describe sensitive talks.

Defense Secretary Pete Hegseth looks on during a media availability after briefing senators on Capitol Hill, Jan. 7, 2026. | Francis Chung/POLITICO

Defense Secretary Pete Hegseth has threatened to terminate Anthropic’s contract with the Pentagon by Friday unless the AI startup agrees to the Trump administration’s terms of use, according to a person familiar with the matter.

In a Tuesday meeting with Anthropic CEO Dario Amodei, Hegseth warned the company to set aside concerns over how its technology may be used by the Defense Department or face being designated a supply chain risk, according to the person who was granted anonymity to describe sensitive talks. The person said Hegseth also threatened to use the Cold War-era Defense Production Act against Anthropic.

Axios first reported details of the Friday deadline.

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