The Department of War issued a blunt ultimatum to the AI industry: work with the military or get cut off. When Anthropic stipulated its models could not be used for autonomous weapons or mass surveillance, Secretary Pete Hegseth responded by blacklisting the company as a supply chain risk. The move signals that safety restrictions are now viewed as a direct threat to national security readiness.
"When the AI startup Anthropic stipulated that its models could not be used for autonomous weapons or mass surveillance, Secretary of War Pete Hegseth responded by blacklisting the company."
- Henry Trix, The Intelligence from The Economist
Other Silicon Valley players are leaning into the military demand. Palantir is already using Anthropic’s Claude models for classified work despite the lab’s public stance. SpaceX acquired Elon Musk’s xAI specifically to handle Pentagon contracts. Anduril secured a consolidated Army deal worth up to $20 billion over a decade. Venture capital is pouring into these 'neoprimes,' betting future budgets will prioritize autonomous systems over legacy hardware.
David Sacks argued on The Conversation that this shift is necessary. He framed the global AI race as an infinite game for market share and soft power, advocating a 'permissionless innovation' stance to keep the U.S. ahead. He dismissed the Anthropic-Pentagon dispute as unrealistic, stating a company cannot sell to the Department of Defense and then attempt to veto its lawful chain of command.
Yet evidence from the war in Iran suggests this push for algorithmic speed is producing grim results. Robert Evans on Behind the Bastards cited Project Maven, a system designed for 1,000 targeting decisions per hour. Human operators get 72 seconds to vet each strike. During Operation Epic Fury, this led to a strike on the Monob Girls Elementary School that killed 156 people. Evans argues the AI is efficient at hitting buildings but incapable of judging strategic value.
"During Operation Epic Fury, this algorithmic speed led the U.S. and Israel to strike the Monob Girls Elementary School, killing 156 people."
- Robert Evans, Behind the Bastards
The political landscape adds friction. The Intelligence noted the Trump administration is stacked with 'Silicon Valley types' who have personal stakes in these firms. Donald Trump Jr. is a venture partner at a firm invested in Anduril. The President publicly defended Palantir against short-sellers. This cozy relationship risks turning historically bipartisan defense procurement into a partisan wedge, threatening the funding stability these neoprimes rely on.
The rift is now structural. One side views building AI for the military as a patriotic duty to win an infinite game. The other sees it as a path to automated errors and ethical blacklisting. The Pentagon’s response makes clear which view currently holds power.


