What to know about Defense Protection Act and the Pentagon’s Anthropic ultimatum
By WYATTE GRANTHAM-PHILIPS, AP Business Writer
NEW YORK (AP) — Defense Secretary Pete Hegseth gave Anthropic an ultimatum this week: Open its artificial intelligence technology for unrestricted military use by Friday, or risk losing its government contract.
Defense officials in the Trump administration also warned they could designate Anthropic, which makes the AI chatbot Claude, as a supply chain risk — 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.
Some experts say that using the law this way would be unprecedented, and could bring future legal challenges. The government’s efforts to essentially force Anthropic’s hand also underscore a wider, contentious debate over AI’s role in national security.

Here’s what we know.
What is the Defense Production Act?
The Defense Production Act gives the federal government broad authority to direct private companies to meet the needs of national defense.
The act was signed by President Harry S. Truman in 1950, amid concerns about supplies and equipment during the Korean War. But over its now decades-long history, the law’s powers have been invoked not only in times of war but also for domestic emergency preparedness as well as recovery from terrorist attacks and natural disasters.