Key investors in AI research lab Anthropic are actively working to de-escalate a dispute with the Pentagon, sources say. The conflict centers on safeguards for Anthropic's AI technology, with potential fallout threatening the company's business operations.

CEO Dario Amodei has engaged in discussions with major investors, including Amazon, and venture capital firms like Lightspeed and Iconiq. Some investors are also reaching out to contacts within the Trump administration to ease tensions. The primary concern is avoiding a ban on Anthropic's AI from all Pentagon contractors.

Anthropic and the Pentagon are continuing discussions, though details remain undisclosed. The dispute highlights the broader debate over AI company control of technology, particularly concerning its application on the battlefield. The Pentagon advocates for an 'all-lawful use' clause, while Anthropic refuses to allow its Claude AI to power autonomous weapons or mass surveillance.

Investors have expressed frustration over the handling of the situation, with some suggesting a need for better diplomacy. However, CEO Amodei maintains the company cannot compromise its ethical stance. The focus for investors is preventing Anthropic from being designated a 'supply-chain risk' by the U.S. government, which could significantly harm its sales to business clients.

Demand for Anthropic's products, including the chatbot Claude, has surged, with Claude recently surpassing OpenAI's ChatGPT in app store downloads. The company is also facing increased scrutiny as U.S. government agencies, including the State Department, are reportedly terminating their use of Anthropic's technology, following a directive to phase out its use within six months.