New Delhi, Feb. 27 -- A standoff has escalated between the US Defense Department and the AI company over demands to allow broader military use of its technology.

Defense Secretary Pete Hegseth reportedly gave Anthropic time until Friday (February 27) to agree to unrestricted use of its AI systems for military purposes or risk losing its government contract.

Defense officials warned they could terminate the partnership and designate the company as a "supply chain risk," a move that could affect its broader business relationships. They also floated the possibility of invoking a Cold War-era law to expand government authority over the technology.

Anthropic CEO Dario Amodei responded that the company "cannot in good conscience accede" to t...