Anthropic has less than 36 hours before it barrels toward uncharted territory with the US government
Business Insider
February 26, 2026
AI-Generated Deep Dive Summary
Anthropic, the AI startup known for its Claude model, is teetering on the brink of a significant showdown with the U.S. government over its military contract. The Department of Defense has given Anthropic until Friday at 5:01 p.m. Eastern Time to agree to unspecified terms or face potential consequences, including being designated as a supply chain risk and having the Defense Production Act (DPA) enforced against it. This marks uncharted territory in government-business relations, with experts warning that such actions could set a precedent for future interactions between tech startups and federal authorities.
The situation began when Anthropic was awarded a $200 million contract last year to develop AI capabilities for national security. The company was the first—and remains one of few—to operate AI models in classified settings. However, tensions escalated during Defense Secretary Pete Hegseth's recent speech, where he emphasized accelerating AI deployment for military use and criticized "woke" AI initiatives. While Anthropic CEO Dario Amodei met with Hegseth in a friendly tone, the discussion ended with an ultimatum: comply or face severe repercussions.
The Pentagon’s willingness to leverage the DPA—a law originally designed for wartime production—is unprecedented in this context. If enforced, it would allow the government to dictate how Anthropic deploys its resources. This move could effectively blacklist the company, similar to how foreign firms like Huawei have been targeted. Experts warn that such a step could chill innovation and deter future collaborations between U.S. startups and the government.
For Anthropic, this is an existential threat. The stakes are high as the company faces potential quasi-nationalization or
Verticals
businessfinance
Originally published on Business Insider on 2/26/2026