If Anthropic doesn't relent, experts say its best bet would be legal action. But will the Pentagon's proposed penalties be enough to scare a profit-driven startup into compliance? Hegseths' threats reportedly include invoking the Defense Production Act, which gives the president authority to direct private companies prioritize certain contracts in the name of national defense. The military could also sever its contract with Anthropic and designate it as a supply chain risk. That would force other companies working with the Pentagon to certify that Claude isn't included in their workflows.
This turnaround in Paramount's fortunes has happened quickly. Warner Bros. Discovery announced that Paramount's offer was superior to Netflix's on Thursday, and not long after the streaming service said that it wouldn't provide a counter offer, effectively abandoning its previous agreement.
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