top of page

Coded for War: Implications of the Anthropic-Pentagon Conflict on AI’s Dual-use 

  • Kien Ting Liem
  • May 25
  • 4 min read

 Introduction  

 

From the early days of AI when ChatGPT seemed like the next revolution, this technology has since become second nature to society, as we cycle from Gemini to Deepseek, perpetually waiting for the next release. The latest contender is Claude, Anthropic’s AI model which disrupted software stocks with their impressive range of abilities from vibe-coding to financial modelling. As commercial users, the Claude familiar to us assists with daily tasks, however these same abilities are leveraged on a far larger scale: military operations where seemingly mundane data collection can advise strike routes. Accessible through Palantir’s systems, the Pentagon uses Anthropic’s AI models for operational reasons but recently escalated their desire for unconditional access (Brumfiel & Bond, 2026). In a USD 200 million contract, the government outlined two requirements: mass domestic surveillance of American citizens and the fully autonomous use of weapons with no human oversight (Brumfiel & Bond, 2026). Since these two red lines directly contradict with Anthropic’s values, they declined the offer and became the first US company to be designated a supply-chain risk (Brumfiel & Bond, 2026). This translates to Anthropic not only being equivalent to Chinese and Russian threats but also blacklisted from any military use (Brumfiel & Bond, 2026). While this conflict carries major implications for the company, it also questions the future of AI’s precarious role as a military tool, where efficiency must be balanced with ethics.  

 

Anthropic’s Decision - Protecting Ethics 

 

From a strategic standpoint, the Pentagon’s contract is an immense financial upside for Anthropic as government deals represent a stable and considerably larger revenue stream compared to commercial consumers. Securing this deal would have further cemented Anthropic’s reputation as it signals their devotion to US interests. However, Dario Adomei’s dedication to the firm’s mission statement overruled these benefits. Outlined in the Claude constitution, they acknowledge that AI carries perilous risks yet will inevitably permeate our systems, therefore their purpose is dedicated to ensuring a safe technology adoption (Claude’s Constitution, 2025). This does not imply that Adomei wholly rejects AI’s military use; he states that while this technology is a catalyst for innovation, its current state is too unreliable to be deployed in a humanitarian crisis. He reports that in rare occasions “AI can undermine, rather than defend, democratic values,” since military operations are a major driver of American nationality (Brumfiel & Bond, 2026). Anthropic’s stance signals the need to defend principles, especially in situations where the lives of others hang in the balance.   

 

 

 

Market Reaction  

 

Following the rejection of the contract, Anthropic received positive support from the wider investor community as their valuation hovered around $800 billion, and Claude’s adoption rapidly soared (Quirino Mealha, 2026). This contrasted dramatically to competitors such as OpenAI, who rushed to court the Pentagon’s favour by accepting their contract and stripping ‘safety’ from their core values (Chen, 2026). In retaliation, employees protested and most notably, Caitlin Kalinowski, the robotics and hardware leader resigned, suggesting that ethics remains a decisive factor for stakeholders (Chen, 2026). While this contrast demonstrates that ethical commitments are rewarded with positive investor reception, Anthropic’s situation is an exception, far from the industry standard. Efforts to uphold ethical boundaries were attempted in the past; the 2018 Google Project Maven was cancelled after employees voiced concerns over the misuse of drone surveillance (Chen, 2026). Since then, competitive desires have superseded morals as Google recently removed their pledge to not engage AI for weapons development and surveillance (Schwarz & Renic, 2026). Therefore, the technology’s use as a military tool is inevitable, and companies are willing to employ them at the expense of their values.   

 

Implications to AI’s Dual-use 

 

This dispute extends beyond the interaction of both parties; it has begun to raise broader questions about AI’s future as a defense tool. While AI is predominantly recognised for its commercial use, such as pattern recognition at unfathomable speeds, these exact capabilities are exactly what defense systems require. In an era defined by the pursuit of geopolitical power, nations are clamoring to dominate the military space, and AI has become a prerequisite to even enter the competition. This urgency leads to excessive expenditure, such as the Pentagon’s $13 billion budget, on premature machine learning tools that risk unreliable and illicit operations (Frenkel et al., 2026). According to a Pentagon official, with a satellite feed and simple click of the mouse, AI agents can recommend the exact weapon, fuel needs and costs to execute a strike plan (Frenkel et al., 2026). This rapid speed at which algorithms operate threatens “flash wars” where AI-driven decisions exacerbate situations and produce irreversible consequences, rendering human intervention impossible (Geneva: UNIDIR, 2025). This introduces the next point of conflict: who bears the responsibility of warfare? Human agency is being eroded by the increasing use of autonomous weapons which challenges the ethics of accountability in life-or-death scenarios. With the line between human and AI control blurring, warfare has become dehumanised where the need to maximise efficiency has taken precedence over humanitarian considerations.   

 

Conclusion 

 

Anthropic and Pentagon’s dispute commanded headlines of newspapers and talk shows as it represented an unprecedented scenario: a major US firm designated a supply-chain risk from the world’s most powerful institution. Yet its significance extends far beyond the two parties. This has triggered the discourse around AI’s dual-use where it is not merely a commercial application but wields a national influence on warfare. Looking forward, it is definite that technology will be deployed in defense, therefore society must monitor how governments shape policies that ensure safe and reliable integration.   

  

 

 

 

 

 

 

References 


Brumfiel , G., & Bond, S. (2026, February 26). Deadline looms as Anthropic rejects Pentagon demands it remove AI safeguards. NPR. https://www.npr.org/2026/02/26/nx-s1-5727847/anthropic-defense-hegseth-ai-weapons-surveillance 


Chen, M. (2026, March 29). OpenAI’s Pentagon Deal: Inside the Classified Military AI Agreement That Split Silicon Valley and Triggered a 0 Billion Defense AI Arms Race. Tech Insider. https://tech-insider.org/openai-pentagon-military-ai-deal-2026/#toc-3 


Claude’s Constitution. (2025). Anthropic.com. https://www.anthropic.com/constitution 

Frenkel, S., Mozur, P., & Satariano, A. (2026, April 12). The Escalating Global A.I. Arms Race. The New York Times. https://www.nytimes.com/2026/04/12/technology/china-russia-us-ai-weapons.html 


Quirino Mealha. (2026, April 18). Anthropic’s fast ascent: The strategy behind an $800 billion valuation. Euronews; euronews.com. https://www.euronews.com/business/2026/04/18/the-rapid-ascent-of-anthropic-inside-the-strategy-behind-an-800-billion-valuation 


Schwarz, E., & Renic, N. (2026, February 26). Anthropic v the US military: what this public feud says about the use of AI in warfare (M. Herd, Ed.). The Conversation. https://theconversation.com/anthropic-v-the-us-military-what-this-public-feud-says-about-the-use-of-ai-in-warfare-276999 


UNIDIR's Security and Technology Programme, Artificial Intelligence in the Military Domain and Its Implications for International Peace and Security: An Evidence-Based Road Map for Future Policy Action, (Geneva: UNIDIR, 2025).  

Comments


  • BoW Facebook
  • BoW Instagram
  • BoW LinkedIn
  • BoW Spotify
  • BoW Email

Copyright © 2025 Banking on Women

bottom of page