Trump hinted that the Department of Defense is highly likely to "reach an AI cooperation agreement" with Anthropic, praising them: they are performing better and better.

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AI giant Anthropic, once fully banned by the U.S. government, is seeing a major turnaround! U.S. President Donald Trump hinted on Tuesday that it is "highly likely" the Department of Defense (DOD) will reach a cooperation agreement with Anthropic. Previously, Anthropic was labeled a national security risk by the Pentagon for refusing to allow its AI models to be used for "autonomous weapons and mass surveillance," leading Trump to order a total ban across federal agencies. However, following recent secret meetings between top officials regarding the new "Mythos" model, this legal battle appears to be seeing a breakthrough. (Previous coverage: White House AI & Crypto Czar David Sacks steps down, firing shots: Anthropic's enterprise coding is great, but they build business on regulatory panic) (Background: NSA secretly using Anthropic Mythos: The Pentagon's double-standard of banning while using) The tense standoff between the U.S. government and the Silicon Valley AI giant has taken a dramatic turn. U.S. President Donald Trump revealed in an interview on CNBC's "Squawk Box" on Tuesday that an agreement allowing the Department of Defense (DOD) to use Anthropic's AI models "is possible." In the interview, Trump praised the startup he had previously ordered to be banned: "They came to the White House a few days ago, and we had a very pleasant meeting. I think they are shaping up. They are very smart, and I think they can be very useful." Once labeled a "National Security Threat" for refusing to let AI become a weapon Trump's friendly remarks stand in stark contrast to the public fallout between the Pentagon and Anthropic earlier this year. In March, the U.S. Department of Defense officially labeled Anthropic a "supply chain risk," claiming that using the company's technology would threaten U.S. national security. This label required all defense contractors to certify that they were not using Claude AI models in their work with the military. Subsequently, Trump posted on Truth Social, demanding that all federal agencies "IMMEDIATELY CEASE" using Anthropic's technology, and stated firmly that his administration "will not be doing business with them anymore." It is understood that the trigger for the breakdown in negotiations occurred last September. Anthropic had signed a $200 million contract with the Pentagon in July to deploy Claude on the DOD's GenAI.mil platform. However, the DOD demanded "unrestricted model access" for all lawful purposes, while Anthropic, prioritizing AI safety, insisted that the military guarantee its technology would never be used for "fully autonomous weapon systems" or "domestic mass surveillance." The two sides remained deadlocked, ultimately leading to the collapse of the partnership. "Breakthrough" after legal battles Faced with extreme pressure from the government, Anthropic did not back down. The company subsequently filed lawsuits against the Trump administration in San Francisco and Washington D.C., seeking to overturn the blacklist. Currently, the executive order posted by Trump on social media has been temporarily blocked by a federal judge. Despite the tension in court, relations behind the scenes have begun to thaw significantly. Last Friday, Anthropic CEO Dario Amodei brought their powerful new AI model, "Mythos," to the White House for key talks with senior officials. The closed-door meeting included high-level attendees, such as White House Chief of Staff Susie Wiles and U.S. Treasury Secretary Scott Bessent. A White House spokesperson later described the meeting as "productive and constructive." With Trump's public praise on Tuesday, whether Anthropic can win back the U.S. military's massive contract while maintaining its ethical bottom line will be the focus of the tech world in the coming weeks.

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