In a memo sent to Anthropic staff, Amodei reportedly said that the department offered to accept the company’s terms if it deleted a specific phrase about “analysis of bulk acquired data.” He continued that it “was the single line in the contract that exactly matched” the scenario it was “most worried about.” Anthropic, which first signed a $200 million deal with the department in 2025, refused to comply with the Pentagon’s demands. The agency then threatened to cancel its existing contract and to label it a “supply chain risk,” a designation typically reserved for Chinese companies. President Trump ordered government agencies to stop using Anthropic’s technology afterward. However, there’s a “six-month phase-out period” that reportedly allowed the government to use Anthropic’s AI tools to stage an air attack on Iran.
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