Basically, Secretary of Defense Pete Hegseth wants to be able to use Anthropic's AI models for things Anthropic is not comfortable with: the mass domestic surveillance of Americans and fully autonomous weapons.
Anthropic said "no". Whiskey Pete is throwing a tantrum, and Trump is supporting him in it.
This is highly entertaining on many levels.
One level is that a company peddling dangerous technology to fascists is suddenly learning the hard way how instrumentally the fascists treat them.
