FILE - Defense Secretary Pete Hegseth stands outside the Pentagon during a welcome ceremony for the Japanese defense minister at the Pentagon in Washington, Jan. 15, 2026. (AP Photo/Kevin Wolf, File)

Defense Secretary Pete Hegseth gave Anthropic’s CEO a Friday deadline to open the company’s artificial intelligence technology for unrestricted military use or risk losing its government contract, according to a person familiar with their meeting Tuesday.

Anthropic makes the chatbot Claude and is the last of its peers to not supply its technology to a new U.S. military internal network. CEO Dario Amodei repeatedly has made clear his ethical concerns about unchecked government use of AI, including the dangers of fully autonomous armed drones and of AI-assisted mass surveillance that could track dissent.

Defense officials warned they could designate Anthropic a supply chain risk or use the Defense Production Act to essentially give the military more authority to use its products even if it doesn’t approve of how they are used, according to the person familiar with the meeting and a senior Pentagon official, who both were not authorized to comment publicly and spoke on condition of anonymity.

The development, which was reported earlier by Axios, underscores the debate over AI’s role in national security and concerns about how the technology could be used in high-stakes situations involving lethal force, sensitive information or government surveillance. It also comes as Hegseth has vowed to root out what he calls a “woke culture” in the armed forces.

“A powerful AI looking across billions of conversations from millions of people could gauge public sentiment, detect pockets of disloyalty forming, and stamp them out before they grow,” Amodei wrote in an essay last month.

The person familiar called the tone of the meeting cordial but said Amodei didn’t budge on two areas he has established as lines Anthropic won’t cross — fully autonomous military targeting operations and domestic surveillance of U.S. citizens.

The Pentagon objects to Anthropic’s ethical restrictions because military operations need tools that don’t come with built-in limitations, the senior Pentagon official said. The official argued that the Pentagon has only issued lawful orders and stressed that using Anthropic’s tools legally would be the military’s responsibility.

Anthropic will no longer be the only AI company approved for classified military networks.

The Pentagon announced last summer that it was awarding defense contracts to four AI companies — Anthropic, Google, OpenAI and Elon Musk’s xAI. Each contract is worth up to $200 million.

Anthropic was the first AI company to get approved for classified military networks, where it works with partners like Palantir. Musk’s xAI company, which operates the Grok chatbot, says Grok also is ready to be used in classified settings, according to the senior Pentagon official.

The official noted that the other AI companies were “close” to that milestone. SpaceX, Musk’s space flight company that recently merged with xAI, didn’t immediately return a request for comment Tuesday.

Hegseth said in a January speech at SpaceX in South Texas that he was shrugging off any AI models “that won’t allow you to fight wars.”

Hegseth said his vision for military AI systems means that they operate “without ideological constraints that limit lawful military applications,” before adding that the Pentagon’s “AI will not be woke.”