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Bloomberg Talks

Pentagon’s Emil Michael on Anthropic Talks, Military’s AI Use

27 Feb 2026

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 18.607 Unknown

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18.947 - 36.552 Unknown

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36.953 - 55.88 Jonathan Ferro

AI in full focus this morning. The standoff between Anthropic and the Pentagon over military safeguards is ramping up. The tech giant facing a deadline today to accept conditions or be blacklisted. The Anthropic CEO, Dario Amode, saying in a statement, quote, these threats do not change our position. We cannot in good conscience accede to their request. The U.S.

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55.9 - 69.441 Jonathan Ferro

Undersecretary of Defense, Emile Michael, responding to the statement, calling Amode a liar with a God complex. The Undersecretary joins us now for more. Undersecretary Michael, welcome to the program, sir. Calling someone a liar is pretty strong language. What's he like about?

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69.922 - 85.978 Emil Michael

Well, what happened is we've been negotiating in good faith on the Department of War side for about three months, and we're working pretty diligently, and we sent over a proposal that we thought made a lot of concessions

85.958 - 115.898 Emil Michael

to the language that anthropic wanted and then you know without any notice they published uh an article where we thought we were getting close saying that they were breaking off talks well before the deadline which is generally not good uh partner oriented practice if you will so emil this is what they're asking for as far as we understand and let me share this with the audience it doesn't want its technology used for surveillance of u.s citizens or for autonomous lethal strikes without a human in the loop that's the ask what were the concessions

117.093 - 140.147 Emil Michael

Yeah, the concessions are pretty simple. We agreed in writing to ensure that the Department of War was following all laws and regulations, including the National Security Act of 1947, the FISA Act, and all other applicable laws and regulations, because mass surveillance of Americans is already illegal. So we were...

140.127 - 156.53 Emil Michael

offering to put all of that language and affirm that we were following all laws in the contract. When it comes to autonomous weapons, similarly, we said we'll follow all laws, including a DOD directive that's been in place for years that governs how we would use any such weapons.

157.07 - 182.807 Emil Michael

And then we affirmed that there would be human oversight over every kind of part of the development process or engagement process or use of autonomous weapons. And he didn't like the word, I guess, as appropriate at the end of that sentence. But we believe we conceded to all their substantive demands. So it was surprising that out of nowhere they'd cut off negotiations.

Chapter 2: What are the current negotiations between the Pentagon and Anthropic about?

182.787 - 186.593 Unknown

So it appears that your differences are actually minor. Would that be accurate?

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188.215 - 206.483 Emil Michael

Yeah, that's what was surprising, is usually if your differences are minor, you get in a room, you try to hash them out, and instead, without any notice, publishes something about his conscience, and then doesn't engage. And it was difficult to understand why, because we were working pretty diligently on this.

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206.463 - 221.602 Emil Michael

And we're at the final stages of a few words here or there where we agreed to what they wanted in substance. So it was very surprising given that we negotiate with hundreds of technology companies, and this is the only one we've ever had that behavior from.

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222.042 - 236.2 Unknown

Are you still weighing using the Defense Production Act to compel Anthropic to basically have to use its product? Or potentially are you weighing still making it a supply chain risk, which we heard from Anthropic say that this is almost contradictory proposals?

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237.547 - 263.329 Emil Michael

They're two different things, and I think, depending on how today goes, at 5 o'clock, the Secretary of War, Pete Hegseth, gets to make the decision on how to reply. I've maintained my openness to continue dialogue through that deadline, but they seem to have launched sort of a PR campaign that was planned well before these negotiations sort of restarted on Tuesday. So I don't know.

263.369 - 267.452 Emil Michael

Their behavior is, frankly, unpredictable. I'm not sure what to expect.

267.5 - 272.768 Unknown

So do you plan, though, on having more talks today, or does a decision just need to be made by today?

272.788 - 288.733 Emil Michael

I offered more talks, so long as they're in good faith. We're always open to talks, and we set a deadline, and we meant the deadline. And up until that deadline, I'm open to more talks, and I told them so.

288.953 - 294.722 Unknown

So what does happen at 501 today if there's no agreement between the DOD and Anthropic?

Chapter 3: What concessions has the Pentagon offered to Anthropic?

367.332 - 389.94 Emil Michael

Well, I think the smart approach, when I came in at the Department of War about nine months ago and looked at what we were using AI for, and it was some pretty minimal use cases, and given the power of the technology and the potential power to do good for the U.S. military, both from an efficiency standpoint and a strength standpoint, I wanted to make sure we had a lot of options.

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390.02 - 406.12 Emil Michael

So we went around and we've launched Google for unclassified networks. We've signed XAI for classified and non-classified networks. And we want to continue to provide options to all of our components here at DOW. And that's what we'll continue to do.

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406.16 - 415.311 Emil Michael

And it's just smart to have more than one option so that we can see the strengths and weaknesses of each model and learn from them as the AI revolution begins here.

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415.426 - 421.392 Unknown

Under Secretary Michael, is lethal autonomy really so critical for future national security?

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423.715 - 450.066 Emil Michael

It is. I mean, if you think about it from a defense standpoint, whether it's a drone swarm that's coming at a military base, whether it's a hypersonic missile coming at the United States where the reaction time against the sort of how many weapons are coming at you You want to be able to take them down potentially faster than a human could alone if that's how it's done.

450.146 - 470.053 Emil Michael

And we're learning from the Russia-Ukraine war with the drone swarms and so on. And with the new weapons that have been developed all over the world that changed the name of the game of warfare, that we've got to respond and defend ourselves in any way we can. The question is, do you have a human on the loop to make sure that we're monitoring these systems?

470.033 - 477.885 Emil Michael

And that's what we proposed in writing, in language, that we always have human oversight over these things. But they're necessary given what's happening in the world.

478.145 - 495.13 Jonathan Ferro

Emil, clearly the technology these companies are producing is tremendously powerful. Yet you believe this individual is both a liar and has a God complex. How concerned should the American public be about individuals like this running companies like this if that's what you believe this person is?

496.291 - 524.357 Emil Michael

Yeah, I think there's some concern that when you have leaders of some of these companies talking about unemploying 70 million Americans, the lawsuits they're under for sort of scraping content from content publishers and having billion-dollar lawsuits against them, using that content to make profits. And then really what's concerning is making their own policies that sort of

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