Anthropic's $200 million DoD contract collapsed after disagreements over unrestricted military access to its AI, including concerns about domestic surveillance and autonomous weapons. The Pentagon then signed a deal with OpenAI instead. Despite public acrimony — Pentagon official Emil Michael calling Dario Amodei a 'liar,' and Amodei calling the OpenAI deal 'safety theater' — new reports indicate Amodei has reopened negotiations with the Pentagon. Defense Secretary Pete Hegseth has threatened to designate Anthropic a 'supply chain risk,' though no legal action has been taken yet.

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