Pentagon Weighs Ending Partnership with Anthropic Over AI Usage Limits

New Delhi- US-based artificial intelligence company Anthropic is facing mounting controversy after reports that the Pentagon (Department of War) is considering ending its partnership with the firm due to disagreements over how its AI models can be used in military operations.

According to reports, Anthropic has refused to relax certain safeguards that limit the military’s use of its AI tools. The Pentagon is said to be pushing several major AI companies to allow the use of their technologies for “all lawful purposes,” including applications such as weapons development, intelligence gathering, and battlefield operations. However, Anthropic has reportedly maintained firm boundaries, leading to tensions after months of negotiations.

Reports also suggested that Anthropic’s AI model, Claude, may have been used in a US military operation aimed at capturing former Venezuelan President Nicolas Maduro through a collaboration with data analytics company Palantir. Although Anthropic has not confirmed specific operational involvement, the development has intensified scrutiny of the company’s military ties.

An administration official reportedly stated that the Pentagon is evaluating all options, including scaling back or completely ending its partnership with Anthropic. In response, the company said it remains committed to supporting US national security but insists on maintaining restrictions on certain high-risk uses, including fully autonomous weapons and mass domestic surveillance.

Anthropic had previously secured a contract worth up to $200 million with the US Department of Defense. However, replacing the company’s AI systems may not be easy in the short term, as Claude is currently integrated into classified military networks and other AI providers are still catching up technologically.

The Pentagon is also reportedly engaging with other AI developers, including OpenAI, Google, and Elon Musk’s xAI, as part of its broader push to expand military use of artificial intelligence tools.

Separately, developments in AI have also impacted global software markets. Anthropic recently expanded its enterprise AI assistant with new automation features designed to manage business workflows, including legal reviews, compliance monitoring, sales planning, marketing analysis, financial reconciliation, and data reporting. Growing concerns about AI replacing traditional software services have contributed to a significant sell-off in software stocks, often referred to as the “SaaSpocalypse,” according to industry reports.

With inputs from IANS