Anthropic CEO Dario Amodei is meeting with Defense Secretary Pete Hegseth today, as the Pentagon threatens the AI company with what could amount to a government blacklist.

At issue is the guardrails Anthropic placed on its AI models. The Pentagon, which has a $200 million contract with Anthropic, wants the company to lift its restrictions for the military to be able to use the model for “all lawful use,” according to a source familiar with the discussions.

But Anthropic has concerns over two issues that it isn’t willing to drop, the source said: AI-controlled weapons and mass domestic surveillance of American citizens. According to a source familiar, Anthropic believes AI is not reliable enough to operate weapons and no laws or regulations yet that cover how AI could be used in mass surveillance.