Pentagon Gives Anthropic Ultimatum in AI Use Clash

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• 00:03

  The Pentagon gives Anthropic and Ultimatum in their spat over use of the company's AI tools.

• 00:09

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• 00:15

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• 00:31

  It's Tuesday, February 24th.

• 00:33

  I'm Alex Ocilov for The Wall Street Journal.

• 00:35

  This is the PM edition of What's News,

• 00:38

  the top headlines and business stories that move the world today.

• 00:46

  A meeting today between Defense Secretary Pete Hegzeff and Anthropic CEO Dario Amade ended in an ultimatum.

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  Anthropic has until Friday to comply with the Pentagon's demands on using its artificial intelligence models,

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  or the company's contract will be canceled.

• 01:01

  That's according to people familiar with the matter.

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  The people said that if Anthropic doesn't show more flexibility working with the military,

• 01:08

  Hegzeff said that he could label the company a supply chain risk,

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  a move typically reserved for overseas companies linked to foreign adversaries.

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  Or,

• 01:16

  he said he could invoke the Defense Production Act to essentially force the company to work more collaboratively with the Pentagon.

• 01:22

  Experts have said that either move would be nearly unprecedented.

• 01:26

  The meeting comes after a recent feud between the Pentagon and Anthropic.

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