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Aug 27, 2026
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Pentagon CTO explains why Anthropic contract was terminated

In an exclusive interview on the “Ruthless Podcast,” Emil Michael, the Pentagon’s under secretary of war for research and engineering and chief technology officer, detailed the reasoning behind the Department of War’s decision to end its contract with artificial intelligence company Anthropic.

Contract restrictions prompted the move

Michael said that shortly after assuming responsibility for the Pentagon’s AI portfolio, he reviewed the Anthropic agreement and discovered a clause stating, “You can’t use AI for battlefield management” and “You can’t use AI to defend yourself from a missile attack.” He questioned the language, noting that such restrictions would limit the military’s ability to employ advanced AI tools in critical defense scenarios.

“What does that mean? You can’t use AI to defend yourself from a missile attack? What?” Michael asked during the interview, emphasizing the impracticality of the provision for a modern defense force.

Shift to other AI providers

Earlier this spring, the Pentagon froze its relationship with Anthropic while simultaneously signing new contracts with a slate of other technology firms, including SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft, and Amazon Web Services. The shift reflects the department’s desire to work with partners whose contracts allow unrestricted, lawful use of AI across all defense applications.

Legal challenge underway

The termination of the Anthropic contract is currently being litigated in federal court. Anthropic has publicly argued that the Department of War’s policy to limit AI use to “all lawful purposes” is overly restrictive and hampers innovation.

Criticism of the prior administration

Michael also criticized the Biden administration for its handling of the original contract, suggesting that officials may not have fully read the agreement’s limitations. “Maybe someone didn’t read it,” he quipped, recalling his prior role as chief business officer at Uber before joining the Pentagon.

Future direction for Pentagon AI

According to Michael, the Pentagon intends to use AI responsibly and within the bounds of the law, but without the constraints that would prevent the technology from supporting critical defense functions. He described a recent meeting with Anthropic representatives, noting that the company emphasized its own moral values and constitutional considerations, which the Pentagon felt conflicted with its operational needs.

Co‑host Comfortably Smug of the podcast observed that the Pentagon’s new approach to AI partnerships is part of a broader trend among leading technology firms to align more closely with government priorities. “By bringing in platforms like Grok, Gemini, and OpenAI, the climate has shifted,” Smug said, adding that these collaborations have already enhanced the Pentagon’s capabilities.

Fox News Digital reached out to Anthropic for comment but did not receive a response at the time of publication.


Original reporting: Fox News (HLL/CB) — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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