U.S. Defense Secretary Pete Hegseth issued an ultimatum to the California-based AI startup Anthropic, demanding that the company eliminate all restrictions on how its artificial intelligence can be utilized by the Pentagon. The deadline for compliance is set for Friday at 11:01 PM French time. If Anthropic fails to comply, the Defense Secretary has indicated he may invoke a 1950 law that empowers the government to compel private companies to produce goods deemed essential for national defense.

This dramatic move highlights the increasing tension between the U.S. government and private tech firms regarding national security and defense capabilities. Notably, it illustrates the pressure the Pentagon is applying on AI companies to ensure that the U.S.'s military edge is maintained amidst rapid technological advancements. The invocation of a 1950-era law underscores the seriousness with which the U.S. military is approaching AI and its potential applications in defense contexts.

Should Anthropic refuse to comply with the ultimatum, it may face significant consequences, including being listed as a company that poses a "risk to national security." This could not only tarnish the company's reputation but also limit its operational capabilities and future partnerships with other government entities. The outcome of this ultimatum could have broader implications for how the tech industry navigates relationships with government agencies, particularly in the defense sector.