AI safety and research company Anthropic has told the Pentagon it will not agree to their demands to drop critical safety precautions and grant the U.S. military full access to their AI capabilities.

The decision comes ahead of a Friday deadline to reach an agreement or face tough government measures.

They announced it cannot agree to the Pentagon's demand to use its tool for mass domestic surveillance and autonomous weapons.

Anthropic said Thursday that “virtually no progress” had been made in the company’s talks with the Pentagon over the terms of use for its AI models ahead of a Friday afternoon deadline. The

The Pentagon's top technology official told CBS News the military has offered compromises to Anthropic, amid a feud over whether its powerful AI technology will be restricted — but Anthropic called the offer inadequate.

American AI company Anthropic has until 5:01 pm ET to give in to the Pentagon’s demands or face being labeled a “supply chain risk,” a type of designation usually reserved for companies thought to be extensions of foreign adversaries.

Anthropic's negotiations with the Pentagon regarding AI safeguards have stagnated, with CEO Dario Amodei expressing concerns over the Department of Defense's final offer. The company is unwilling to accept terms that could allow its Claude model to be used for mass surveillance or autonomous weapons.

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