Anthropic and Pentagon Back at Negotiating Table After Breakdown

Anthropic CEO Dario Amodei reportedly in talks with DoD's Emil Michael to reach new agreement on use of AI tools

Published on Mar. 5, 2026

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Anthropic CEO Dario Amodei is back in negotiations with the U.S. Department of Defense after talks broke down last Friday over the military's use of the company's AI technology. The two sides are working to reach a new agreement, with Amodei reportedly telling staff the Pentagon had offered to accept Anthropic's terms if they deleted a line about 'analysis of bulk acquired data' - a scenario the company was most worried about. The negotiations come after the White House directed federal agencies to stop using Anthropic's tools and the Defense Secretary designated the company a supply chain risk.

Why it matters

The negotiations between Anthropic and the Pentagon are significant as they highlight the ongoing tensions between tech companies and the military over the use of advanced AI tools. Anthropic has positioned itself as a 'safety-first' alternative to other AI firms, but the Pentagon has pushed for unfettered access to the company's technology. The outcome of these talks could set an important precedent for how the government regulates and utilizes cutting-edge AI.

The details

According to the report, Amodei is in talks with Emil Michael, the under-secretary of defense for research and engineering, in a last-ditch effort to reach an agreement. Discussions fell apart last Friday, with the White House directing federal agencies to stop using Anthropic's tools and the Defense Secretary designating the company a supply chain risk. Amodei reportedly told staff the Pentagon had offered to accept Anthropic's terms if they deleted a line about 'analysis of bulk acquired data' - a scenario the company was most worried about. The timing of a new deal between the Pentagon and OpenAI, announced shortly after the breakdown with Anthropic, has also caused a backlash.

  • Talks between Anthropic and the Pentagon broke down on Friday, March 3, 2026.
  • The White House directed federal agencies to stop using Anthropic's tools on Friday, March 3, 2026.
  • Defense Secretary Pete Hegseth designated Anthropic a supply-chain risk to national security on Friday, March 3, 2026.

The players

Dario Amodei

CEO of Anthropic, a company that markets itself as a 'safety-first' alternative to other AI firms.

Emil Michael

Under-secretary of defense for research and engineering at the U.S. Department of Defense.

Donald Trump

The President of the United States who directed federal agencies to stop using Anthropic's tools.

Pete Hegseth

The U.S. Defense Secretary who designated Anthropic a supply-chain risk to national security.

Sam Altman

CEO of OpenAI, which struck a new deal with the Pentagon shortly after Anthropic's talks broke down.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.