The very public feud between the US Department of Defense (also known these days as the Department of War) and its AI technology supplier Anthropic is unusual for pitting state might against corporate power. In the military space, at least, these are usually cosy bedfellows.

The origin of this disagreement dates back months, amid repeated criticisms from Donald Trump’s AI and crypto “czar”, David Sacks, about the company’s supposedly woke policy stances.

But tensions ramped up following media reports that Anthropic technology had been used in the violent abduction of former Venezuelan president Nicolás Maduro by the US military in January 2026. It was alleged this caused discontent inside the San Francisco-based company.

Anthropic has denied this, with company insiders suggesting it did not find or raise any violations of its policies in the wake of the Maduro operation.

Nonetheless, the US secretary of defense, Pete Hegseth, has issued Anthropic with an ultimatum. Unless the company relaxes its ethical limits policy by 5.01pm Washington time on Friday, February 27, the US government has suggested it could invoke the 1950 Defense Production Act. This would allow the Department of Defense (DoD) to appropriate the use of this technology as it wishes.

At the same time, Anthropic could be designated a supply chain risk, putting its government contracts in danger. These extraordinary measures may appear contradictory, but they are consistent with the current US administration’s approach, which favours big gestures and policy ambiguity.

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