Contract renewal talks between Anthropic and the Pentagon have stalled over how its Claude system can be used. The AI firm is seeking stricter limits before extending its agreement, according to a person familiar with the private negotiations and Bloomberg. At the heart of the dispute is control. Anthropic wants firm guardrails to prevent Claude from being used for mass surveillance of Americans or to build weapons that operate without human oversight. The Defense Department’s position is broader: it wants flexibility to deploy the model so long as its use complies with the law. The tension reflects a larger debate over how far advanced AI should go in military settings. Bloomberg writes that Anthropic has tried to distinguish itself as a safety-first AI developer. It created a specialized version, Claude Gov, tailored to U.S. national security work, designed to analyze classified information, interpret intelligence and process cybersecurity data. The company says it aims to serve government clients while staying within its own ethical red lines. “Anthropic is committed to using frontier AI in support of US …