Defense Secretary Pete Hegseth gave Anthropic an ultimatum this week: Open its artificial intelligence technology for unrestricted military use by Friday, or risk losing its government contract.

Anthropic AI defies Pentagon over expanded military use of its tech despite Hegseth blacklist threat - The AI model, named Claude, is the only one currently running in the military's classified system

Defense Secretary Pete Hegseth gave Anthropic until Friday at 5 p.m. to grant the military unresticted use of its AI technology.

The company's Claude chatbot is one of the few AI systems cleared for use in classified settings. But a standoff between Anthropic and the Trump administration is putting its government work at risk.

Nvidia CEO Jensen Huang weighed in on a conflict between the Defense Department and its strategic partner on Thursday, saying it's “not the end of the world.”

Earlier this week, Defense Secretary Pete Hegseth gave Anthropic a deadline of 5:01 p.m. ET on Friday to agree to the removal of all safeguards, threatening to boot Claude from U.S. military systems or designate the company as a “supply chain risk,” a label used for adversaries of the U.S. that’s never been applied to an American company before.

The Pentagon may decide to officially designate Anthropic as a "supply chain risk" to push them out of government, sources say.

Defense Secretary Pete Hegseth is pressuring Anthropic to give the military broader access to its artificial intelligence technology or lose its Pentagon contract.