New Delhi, Feb. 26 -- Pentagon officials on Wednesday night sent Anthropic their "best and final offer" in negotiations over the military's use of the company's artificial intelligence technology, CBS News has reported citing to sources familiar with the discussions.

The news outlet stated it was not immediately clear whether the new proposal substantially altered the government's prior demands, or whether Anthropic had agreed to the terms.

The talks come ahead of a government-imposed deadline set by Defense Secretary Pete Hegseth, who has given the AI startup until Friday evening to grant what the Pentagon describes as full lawful use of its technology - or risk losing its business with the US military.

If Anthropic does not comply, t...