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The US War Department is in a dispute with artificial intelligence developer Anthropic over how the military can use AI products, Reuters reports.
The dispute has blocked a contract worth up to $200 million, as military officials object to what they see as excessive restrictions placed by the San Francisco-based company on the use of its technology, Reuters reported, citing six people with knowledge of the matter.
Anthropic has raised concerns that its artificial intelligence tools could be used to carry out lethal operations without sufficient human oversight or to surveil Americans, sources told Reuters.
Pentagon officials, however, have argued that commercial artificial intelligence systems should be applicable for military purposes regardless of a company's internal use policies, as long as they comply with US law.
The dispute comes amid the Trump administration's push to rapidly integrate artificial intelligence into all armed forces. Earlier this month, the War Department outlined a new strategy aimed at transforming the US military into an "artificial intelligence-based" fighting force.
The Pentagon believes it should maintain full control over how artificial intelligence tools are used on the battlefield and in intelligence operations.
A spokesperson for Anthropic said the company's artificial intelligence is "widely used for national security missions by the U.S. government" and that it remains in "productive discussions with the Department of War about ways to continue that work." The Pentagon has yet to comment on the reported disruption.
Anthropic CEO Dario Amodei has repeatedly warned about the dangers of unfettered use of artificial intelligence, particularly in mass surveillance and fully autonomous weapons systems. In a recent essay, he argued that it should support national defense “in all ways except those that would make us more like our autocratic adversaries.”
The shutdown poses risks for Anthropic, which has invested heavily in wooing government and national security clients and is preparing for a possible public offering. The company was one of several large artificial intelligence developers awarded Pentagon contracts last year, along with OpenAI, Google and Elon Musk’s xAI.
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