Hegseth issues an ultimatum to ‘woke AI’ startup Anthropic: Get with military program by Friday or lose $200 million

Fortune

by Jake Angelo

February 25, 2026

AI-Generated Deep Dive Summary

The Department of Defense has set a deadline for AI startup Anthropic to comply with military demands by Friday or face severe consequences. In a recent ultimatum, Defense Secretary Pete Hegseth warned that Anthropic must grant unrestricted access to its AI technology or risk being blacklisted from the Pentagon’s supply chain and labeled a "supply-chain risk," similar to foreign adversaries like Huawei. Anthropic has until 5:01 p.m. Friday to comply, following months of negotiations over how the military can use its AI systems. The company previously prohibited its AI from being used in fully autonomous weapons or domestic surveillance but has recently shown signs of softening its stance on safety measures under commercial pressure. The standoff between Anthropic and the Pentagon highlights a broader debate over control of AI technology: whether tech companies or the government should set the terms for its use. Anthropic, which was once the only AI company cleared for Pentagon use, is now facing competition from Elon Musk’s xAI, which recently reached an agreement to allow military access to its AI systems. This shift has left Anthropic in a delicate position, as it balances its principles of responsible AI with the need to remain competitive. The company released an updated Responsible Scaling Policy earlier this week, citing changes in the market environment and prioritizing AI competitiveness over safety measures. The situation is significant for business readers as it underscores the growing tension between tech innovation and government regulation in the AI industry. While Anthropic has expressed its commitment to supporting national security missions, its recent policy adjustments

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Originally published on Fortune on 2/25/2026