New Delhi, Feb. 26 -- Pentagon and Anthropic are locked in an unusual controversy as Defense Secretary Pete Hegseth has warned the AI company that it will remove it from his agency's supply chain if it did not meet certain demands.

Pentagon has already reportedly taken the first step to blacklist Anthropic as it tapped its defence contractors to assess their reliance on the AI company.

The Department of Defense has been engaged in a months-long dispute with Anthropic over its use of Claude AI, which Reuters reported has no intention of easing its usage restrictions for military purposes.

A meeting between Hegseth and Anthropic CEO Dario Amodei has already taken place, after which talks are continuing.

During the meeting, Hegseth said ...