Anthropic’s $200 million contract with the Department of Defense (DOD) collapsed last week after the parties could not agree on the extent to which the military would have unrestricted access to Anthropic’s AI.
The military’s relationship with Anthropic seemed to be coming to an end when the Pentagon struck a deal with OpenAI instead, but new reports from the Financial Times and Bloomberg say Amodei has resumed negotiations with Pentagon official Emil Michael.
These talks are reportedly part of an attempt to reach a compromise on a contract that outlines how the Pentagon will continue to have access to Anthropic’s AI models.
It would be surprising to see Anthropic seeking a new contract considering how many heated opinions are being exchanged between the parties involved. However, a compromise could still be attractive to both sides. The Department of Defense already relies on Anthropic’s technology, and a sudden switch to OpenAI’s system would be disruptive.
The controversy began after Anthropic CEO Dario Amodei expressed concern about a provision that would allow the military to use Anthropic’s AI for “any lawful use.” Amodei argued that he would not allow his company’s technology to be used for domestic mass surveillance or autonomous weapons, and that he wanted contracts to more clearly prohibit their use. When Anthropic refused, the Department of Defense turned around and awarded a contract to OpenAI.
Since then, officials on both sides have openly expressed their frustrations. Michael called Amodei a “liar” with a “God complex.” In a message he reportedly sent to Anthropic staff this week, Amodei took his own jabs at the Pentagon and OpenAI CEO Sam Altman, calling the OpenAI contract “safety theater” and the messages surrounding it “blatant lies.”
“The main reason[OpenAI]accepted[the Department of Defense agreement]and we didn’t is because they cared about appeasing their employees, and we actually cared about preventing abuse,” Amodei wrote in the memo.
tech crunch event
San Francisco, California
|
October 13-15, 2026
Secretary of Defense Pete Hegseth has declared Anthropic a “supply chain risk,” effectively blacklisting the company from other companies doing business with the U.S. military, but has not yet taken legal action to that effect. This kind of designation is typically reserved for foreign adversaries, and it’s unclear whether it can survive a court challenge.
