Pentagon contract loss sparks investor ire at AI startup Anthropic
Anthropic, an AI startup, is facing heat from its own investors.
Some investors grew frustrated as CEO Dario Amodei refused Pentagon requests to remove safety limits from Anthropic's Claude model, and President Trump subsequently directed all federal agencies to stop using the company's technology.
This move could cost Anthropic a $200 million government contract.
OpenAI signed a similar deal with the Pentagon quickly
Investors feel Amodei should have found middle ground with the Pentagon, worrying that his decision risks not just a major contract but also Anthropic's reputation and future deals with the government.
Meanwhile, OpenAI quickly signed a similar deal with the Pentagon, raising questions about how these choices could shape which companies get big opportunities in AI—and what values they stand for.