Defense Secretary Pete Hegseth gave Anthropic until Friday at 5 p.m. to grant the military unresticted use of its AI technology.

Washington DC: US-based Artificial Intelligence company Anthropic has said it cut had off access to its AI model- Claude for firms linked to the Chinese Communist Party (CCP), forgoing several hundred million dollars in revenue as part of efforts to safeguard America's technological lead.

As well as designating Anthropic as a supply chain risk, the government could also cancel its contract or invoke a Cold War-era law called the Defense Production Act to give the military more sweeping authority to use its products, even if the company doesn’t approve.

US artificial intelligence company Anthropic has refused to yield to the Pentagon's pressure and rejected the proposal on military use of AI. The decision comes after Defense Secretary Pete

The Pentagon's top technology official told CBS News the military has offered compromises to Anthropic, amid a feud over whether its powerful AI technology will be restricted — but Anthropic called the offer inadequate.

Washington had given the artificial intelligence startup until Friday 5.01 pm to agree to unconditional military use of its technology.

Debates have long swirled around AI and its use in weapons targeting, the idea of no human involvement still an uncomfortable one.

The company's Claude chatbot is one of the few AI systems cleared for use in classified settings. But a standoff between Anthropic and the Trump administration is putting its government work at risk.

SAN FRANCISCO, Feb 24 (Reuters) - Artificial intelligence lab Anthropic on Tuesday unveiled 10 new ways for business customers to plug in its technology to key areas of their work, weeks after other releases sparked an aggressive selloff in traditional software company shares.