Anthropic’s $200 million contract with the Department of Defense (DoD) broke down last week after the two parties failed to come to an agreement over the degree to which the military could obtain unrestricted access to Anthropic’s AI.
When the DoD made a deal with OpenAI instead, it seemed that the military’s relationship with Anthropic would come to a close — but new reporting from the Financial Times and Bloomberg say that Amodei resumed negotiations with Pentagon official Emil Michael.
These talks are reportedly part of an attempt to compromise on a contract that outlines how the Pentagon can continue to access Anthropic’s AI models.
It would be a surprise to see Anthropic eek out a new deal, given how much vitriol has been exchanged among the parties involved. But a compromise could still hold appeal for both sides — the Pentagon already relies on Anthropic’s technology, and an abrupt switch to OpenAI’s systems would be disruptive.
The dispute began when Anthropic CEO Dario Amodei voiced concern over a clause which allowed the military to use Anthropic’s AI for any lawful use. Amodei asserted that the company would not allow for its technology to be used for domestic mass surveillance or autonomous weaponry, and wanted the contract to more clearly prohibit those uses. When Anthropic refused to comply, the department turned around and struck a deal with OpenAI instead.
Since then, figures on both sides have been open about their frustrations. Michael called Amodei a “liar” with a “God complex.” Amodei threw some jabs of his own at the DoD and OpenAI CEO Sam Altman in a message reportedly sent to Anthropic staff this week, calling the OpenAI deal “safety theater” and the messaging around it “straight up lies.”
“The main reason [OpenAI] accepted [the DoD’s deal] and we did not is that they cared about placating employees, and we actually cared about preventing abuses,” Amodei wrote in the memo.
Techcrunch event Disrupt 2026: The tech ecosystem, all in one room Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400. Save up to $300 or 30% to TechCrunch Founder Summit 1,000+ founders and investors come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediately
Offer ends March 13. San Francisco, CA | REGISTER NOW
... continue reading