WASHINGTON, D.C.: Anthropic said it will not comply with a Pentagon request to remove safeguards from its artificial intelligence systems, setting up a clash that could jeopardize a contract worth up to US$200 million.

The dispute centers on Anthropic's refusal to eliminate restrictions designed to prevent its AI models from being used for autonomous weapons targeting or domestic surveillance. The Defense Department has warned it could terminate its partnership with the company and designate it a "supply chain risk" if the safeguards remain in place.

Earlier on February 26, Pentagon spokesperson Sean Parnell said on X that the department had no intention of using AI for mass surveillance of Americans or to develop autonomous weapons operating without human involvement.

"Here's what we're asking: Allow the Pentagon to use Anthropic's model for all lawful purposes," Parnell said, adding that the company had until 5:01 p.m. ET on February 27 to decide. "Otherwise, we will terminate our partnership with Anthropic and deem them a supply chain risk."

In a statement, Anthropic CEO Dario Amodei reiterated the company's opposition to allowing its AI systems to be used for mass domestic surveillance or fully autonomous weapons. He said the latter was unacceptable because "frontier AI systems are simply not reliable enough."

A source close to Anthropic said the company was not accusing the Pentagon of planning to use AI for those purposes, but rather expressing a product-safety judgment.

The source said AI systems are not dependable enough for "life-or-death targeting," noting that they can behave unpredictably in novel situations, potentially leading to "friendly fire, mission failure, or unintended escalation."

On domestic surveillance, the source said current laws do not limit the conclusions AI systems can draw from aggregating large volumes of data. That could enable the creation of population-level profiles that "no law explicitly prohibits, but that clearly violate the spirit of constitutional protections," the source added.

Amodei said he hoped the Pentagon would reconsider but that Anthropic "will work to enable a smooth transition to another provider" if the contract is canceled.

He also said the Pentagon had threatened to remove Anthropic from its systems, label it a supply chain risk, and invoke the Defense Production Act to compel the removal of safeguards.

"Regardless, these threats do not change our position: we cannot in good conscience accede to their request."

Undersecretary of Defense Emil Michael responded on X, writing, "It's a shame that @DarioAmodei is a liar and has a God-complex. He wants nothing more than to try to personally control the US Military and is ok putting our nation's safety at risk."

Michael added that the Pentagon would "ALWAYS adhere to the law but not bend to the whims of any one for-profit tech company."

Anthropic, backed by Google and Amazon, holds a contract with the Defense Department valued at up to $200 million. A company spokesperson said Anthropic remains "ready to continue talks and committed to operational continuity for the Department and America's warfighters."

More than 200 Google and OpenAI employees signed an open letter in support of Anthropic's stance. Google and OpenAI did not immediately respond to requests for comment.