New Delhi, Feb. 27 -- AI company Anthropic on Thursday rejected the Pentagon's latest offer to settle a standoff over conditions that Trump's Department of War has sought from the company in order for it to keep working with the government. Anthropic said it will not give the US Defense Department unrestricted use of its Claude AI despite threats from the Pentagon.

"These threats do not change our position: we cannot in good conscience accede to their request," Anthropic CEO Dario Amodei said in a statement.

The confrontation effectively jeopardises the company's long standing relationship with the government.

The dispute between Pentagon and Anthropic stems from the refusal of the AI startup to put down certain guardrails that would a...