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Sign InThe US Department of Defense has issued a stark ultimatum to AI startup Anthropic, demanding the removal of ethical restrictions on the military application of its technology. The Pentagon has set a deadline of Friday at 5 p.m. for the company to permit the use of its AI models in weapons systems and surveillance operations. Failure to comply could result in Anthropic being designated as a national security threat, a move that would severely impact its operational capacity and valuation. Tensions have escalated significantly, with defense officials reportedly labeling Anthropic’s CEO a "liar" during the standoff. This conflict highlights the growing friction between Silicon Valley’s ethical AI frameworks and national defense priorities. Major investors like Amazon (AMZN) and Google (GOOGL) are closely monitoring the situation, as a formal threat designation could jeopardize their multi-billion dollar stakes.