Anthropic CEO Dario Amodei on Thursday said there has been "virtually no progress" on negotiations with the Pentagon. Why it matters: A deadline of Friday at 5:01pm is fast approaching for Anthropic to let the Pentagon use its model Claude as it sees fit or potentially face severe consequences. What they're saying: " The contract language we received overnight from the Department of War made virtually no progress on preventing Claude's use for mass surveillance of Americans or in fully autonomous weapons," Amodei said in a statement. "New language framed as compromise was paired with legalese that would allow those safeguards to be disregarded at will. Despite DOW's recent public statements, these narrow safeguards have been the crux of our negotiations for months." Catch up quick: The Pentagon and Anthropic are in a high-stakes feud over the limits Anthropic wants to place on the department's use of its AI model Claude: no mass surveillance or autonomous weapons. The Pentagon this week started laying the groundwork for one consequence — blacklisting the company as a supply chain risk — by asking defense contractors including Boeing and Lockheed Martin to assess their exposure to Anthropic. Alternatively, Hegseth threatened to invoke the Defense Production Act to compel Anthropic to provide its model without any restrictions. Such an order may be on murky legal ground . The big picture: The Pentagon's requirement that AI models be offered for "all lawful purposes" in classified settings is not unique to Anthropic. While Anthropic has been the only model used in classified settings to date, xAI recently signed a contract under the all lawful purposes standard for classified work. Negotiations to bring OpenAI and Google into the classified space are accelerating. What's next: Amodei said the company remains committed to continuing talks.