The Defense Department has given AI company Anthropic an ultimatum to agree to its terms for the use of AI technology in the military by a Friday deadline or the Pentagon will force it to comply, according to a Pentagon official and a source familiar with the matter. The Pentagon has been using Anthropic's technology as part of a $200 million pilot program in the Department of Defense. During a Tuesday meeting with Defense Secretary Pete Hegseth, Anthropic CEO Dario Amodei outlined Anthropic's red lines, which include autonomous weapons and mass domestic surveillance of American citizens. The Pentagon official says the dispute has nothing to do with those uses, adding that "legality is the Pentagon's responsibility as the end user." If Anthropic does not comply, Hegseth said he would invoke the Defense Production Act to force the company to allow its model to be used for the military's needs. Hegseth also said he would label Anthropic a "supply chain risk," a penalty usually reserved for foreign adversaries that would halt the company's business with the Pentagon. The meeting was respectful, but ended with the Pentagon making clear it would punish Anthropic if it did not agree to its terms.