A public showdown between the Trump administration and Anthropic is hitting an impasse as military officials demand the artificial intelligence company bend its ethical policies by Friday or risk damaging its business. Anthropic CEO Dario Amodei drew a sharp red line 24 hours before the deadline, declaring his company “cannot in good conscience accede” to the Pentagon’s final demands to allow unrestricted use of its technology. Anthropic, maker of the chatbot Claude, can likely afford losing a defense contract. But the ultimatum this week from Defense Secretary Pete Hegseth posed broader risks at the peak of the company’s meteoric rise from a little-known computer science research lab in San Francisco to one of the world’s most valuable startups.

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Pages from the Anthropic website and the company's logos are displayed on a computer screen in New York on Thursday, Feb. 26, 2026. (AP Photo/Patrick Sison)

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FILE - Defense Secretary Pete Hegseth stands outside the Pentagon during a welcome ceremony for the Japanese defense minister at the Pentagon in Washington, Jan. 15, 2026. (AP Photo/Kevin Wolf, File)

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FILE - The OpenAI logo is displayed on a mobile phone in front of a computer screen with output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File)

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Indian farmer Bir Virk, second left, talks with his neighboring farmer about using AI, or Artificial Intelligence technology in farming, near Karnal, India, on Feb. 10, 2026. (AP Photo/Piyush Nagpal)

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Workers follow an AI-operated driverless tractor harvesting potatoes at Bir Virk's farm near Karnal, India, on Feb. 10, 2026. (AP Photo/Piyush Nagpal)

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Student Anirudh Singh uses AI or Artificial Intelligence applications for his project sitting in his room in New Delhi, India, on Feb. 13, 2026. (AP Photo/Piyush Nagpal)

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A person uses an AI or Artificial Intelligence applications on his laptop in New Delhi, India, on Feb. 13, 2026. (AP Photo/Piyush Nagpal)