Trump says that AI tech companies need to ‘pay their own way’ when it comes to their electricity consumption
After months of private talks collapsed into a public standoff this week, Amodei said Thursday his company "cannot in good conscience accede" to the DoD's terms. The Pentagon responded by threatening to invoke the Korean War-era Defense Production Act to compel Anthropic's compliance and warned it would designate the company a "supply chain risk" — a label typically reserved for companies from adversarial nations such as Huawei.
Trump, in his Truth Social post, accused Anthropic of "trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution," adding that the company's position was "putting AMERICAN LIVES at risk." He gave agencies a six-month phase-out window and warned that if Anthropic failed to cooperate during that period, he would use "the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow."
Claude was the only AI model approved for use in classified military systems, and defense software firm Palantir, which uses Claude to power its most sensitive government contracts, will need to find a replacement quickly. OpenAI CEO Sam Altman said Friday he shares Anthropic's position on autonomous weapons' ethical “red lines,” complicating its candidacy as a direct replacement.
Unsurprisingly, Elon Musk has already agreed in principle to the Pentagon's "all lawful purposes" request, potentially lining up Grok as a replacement.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/trump-orders-federal-agencies-to-ditch-woke-claude#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.