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Pentagon Bans AI Giant from Drone Project
3 Mar
Summary
- Pentagon barred contractors from commercial dealings with Anthropic.
- Companies like SpaceX and xAI were selected for drone swarm tech.
- The decision stems from AI use red lines with the Defense Department.

The Pentagon has issued a directive barring its contractors and their partners from engaging in any commercial activities with Anthropic, an artificial intelligence company. This action excludes Anthropic from a significant $100 million Pentagon prize challenge focused on developing voice-controlled, autonomous drone swarm technology. The initiative has instead advanced with other selected companies, including SpaceX, xAI, and defense technology firms collaborating with OpenAI.
The decision arose from protracted negotiations between Anthropic and the Defense Department concerning the military's potential use of AI. Anthropic has established clear boundaries, supporting lawful AI use in combat but opposing mass domestic surveillance and fully autonomous weapons. While Anthropic believed its proposal for the drone swarm project, utilizing its Claude AI tool for command intent translation and drone coordination, did not cross these red lines due to human oversight capabilities, the Pentagon ultimately decided to exclude the company.
Other successful submissions include proposals from SpaceX and xAI. Additionally, bids from defense technology companies that partner with OpenAI on their AI components were selected. These include a submission led by Applied Intuition Inc. Hours after the Pentagon's move to sideline Anthropic, OpenAI announced a new agreement with the Defense Department for using its AI tools on classified cloud systems, with CEO Sam Altman emphasizing human responsibility for the use of force.
The drone swarm prize challenge is a multi-phase research and development effort. It began with software development and is progressing towards live testing, with the drones intended for offensive purposes. The initial phases focus on software to coordinate drone movements across domains, followed by developing target awareness and sharing, and ultimately, launch to termination. The contest's progression depends on participant success and interest.




