Anthropic CEO Dario Amodei is in last-minute negotiations with the U.S. Department of Defense to secure continued Pentagon contracts and avoid a potential “supply chain risk” designation from the Trump administration. The talks, reported by the Financial Times, follow a collapse in discussions last week. A new agreement would allow the military to keep using Anthropic‘s AI models and prevent a formal label that could force defense contractors to cut ties with the company.
Anthropic CEO Dario Amodei has reopened negotiations with the U.S. Department of Defense in a last-minute effort to secure access to Pentagon contracts. The company faces the possibility of being labeled a supply chain risk by the Trump administration, which would freeze it out of military procurement networks.
Amodei has been holding discussions with Undersecretary of Defense Emil Michael to finalize terms for the military’s use of Anthropic’s AI models. Their talks broke down last week after the two sides failed to agree on language the company said was necessary to prevent misuse of its technology.
The dispute centers on a clause restricting the “analysis of bulk acquired data,” which Amodei said guards against potential mass domestic surveillance. In an internal memo, he wrote that the Pentagon offered to accept Anthropic’s terms if this specific clause was removed.
Defense Secretary Pete Hegseth warned that Anthropic could be designated a supply chain risk. This standoff occurred despite the company’s existing $200 million defense contract and its models being the first used by national security agencies in classified environments.
In a letter to President Trump, major tech groups warned that labeling a domestic AI company a risk could undermine U.S. leadership. They argued treating a U.S. technology firm “as a foreign adversary, rather than an asset,” could weaken America’s ability to compete with China in AI.
