Anthropic chief executive Dario Amodei is negotiating with the US War Department to salvage his company’s role in the military’s AI supply chain following a breakdown in talks last week. Discussions with Emil Michael, under-secretary for research and engineering, aim to finalize a contract governing Pentagon access to Anthropic’s AI models, sources familiar with the matter said.
A new agreement would let the military continue using Anthropic’s technology and reduce the risk of the company being labeled a supply chain risk. Negotiations collapsed after Michael called Amodei a “liar” with a “God complex” and the two sides failed to agree on language preventing AI from being used for mass domestic surveillance.
Anthropic, which landed a $200 million War Department deal in July, was the first AI model used in classified government settings. Tensions grew after the Pentagon demanded AI companies allow their technology to be used for any “lawful” purpose, culminating in Hegseth’s warning to label Anthropic a supply chain risk, which would force military contractors to sever ties.














