Anthropic PBC rejected the Pentagon’s latest offer in a dispute over safeguards around the use of its artificial intelligence technology by the US military, escalating the standoff a day before a government deadline for the company to drop its restrictions or face severe consequences.

Defense Secretary Pete Hegseth has threatened Anthropic, the maker of Claude AI, that if it doesn't turn over full use of the powerful tool by Friday, the company will face severe repercussions.

The Pentagon's top technology official told CBS News the military has offered compromises to Anthropic in order to reach a deal with the AI giant, amid a feud over whether its technology will be restricted.

The Pentagon wants Anthropic to remove limits on AI use for autonomous weapons and mass surveillance, raising civil liberties concerns.

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.

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

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Pentagon gives Anthropic until Friday to remove military restrictions on Claude AI model or face contract termination and Defense Production Act.