US Threatens Anthropic with 'Supply-Chain Risk' Designation. OpenAI Signs New War Department Deal

It started Friday when all U.S. federal agencies were ordered to "immediately cease" using Anthropic's AI technology after contract negotiations stalled when Anthropic requested prohibitions against mass domestic surveillance or fully autonomous weapons. But later Friday there were even more repercussions... In a post to his 1.1 million followers on X.com, U.S. Secretary of War Pete Hegseth criticized Anthropic for what he called "a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon." Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic's models for every LAWFUL purpose in defense of the Republic... Cloaked in the sanctimonious rhetoric of "effective altruism," [Anthropic and CEO Dario Amodei] have attempted to strong-arm the United States military into submission — a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives. The Terms of Service of Anthropic's defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield. Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable... In conjunction with the President's directive for the Federal Government to cease all use of Anthropic's technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic... America's warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final. Meanwhile, Anthrophic said on Friday that "no amount of intimidation or punishment from the Department of War will change our position." (And "We will challenge any supply chain risk designation in court.") Designating Anthropic as a supply chain risk would be an unprecedented action — one historically reserved for US adversaries, never before publicly applied to an American company. We are deeply saddened by these developments. As the first frontier AI company to deploy models in the US government's classified networks, Anthropic has supported American warfighters since June 2024 and has every intention of continuing to do so. We believe this designation would both be legally unsound and set a dangerous precedent for any American company that negotiates with the government... Secretary Hegseth has implied this designation would restrict anyone who does business with the military from doing business with Anthropic. The Secretary does not have the statutory authority to back up this statement. Anthropic also defended the two exceptions they'd requested that had stalled contract negotiations. "[W]e do not believe that today's frontier AI models are reliable enough to be used in fully autonomous weapons. Allowing current models to be used in this way would endanger America's warfighters and civilians. Second, we believe that mass domestic surveillance of Americans constitutes a violation of fundamental rights." Also Friday, OpenAI announced that "we reached an agreement with the Department of War to deploy our models in their classified network." OpenAI CEO Sam Altman emphasized that the agreement retains and confirms OpenAI's own prohibitions against using their products for domestic mass surveillance — and requires "human responsibility" for the use of force including for autonomous weapon systems. "The Department of War agrees with these principles, reflects them in law and policy, and we put them into our agreement. We also will build technical safeguards to ensure our models behave as they should, which the Department of War also wanted. " We are asking the Department of War to offer these same terms to all AI companies, which in our opinion we think everyone should be willing to accept. We have expressed our strong desire to see things de-escalate away from legal and governmental actions and towards reasonable agreements. We remain committed to serve all of humanity as best we can. The world is a complicated, messy, and sometimes dangerous place.

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