Pentagon's Anthropic showdown exposes who controls AI guardrails in military contracts
60 Sources
[1]
Will the Pentagon's Anthropic controversy scare startups away from defense work? | TechCrunch
In just over a week, negotiations over the Pentagon's use of Anthropic's Claude technology fell through, the Trump administration designated Anthropic a supply-chain risk, and the AI company said it would fight that designation in court. OpenAI, meanwhile, quickly announced a deal of its own,
[2]
You Should Have a Say in Military AI Policy
A simmering dispute between the United States Department of Defense (DOD) and Anthropic has now escalated into a full-blown confrontation, raising an uncomfortable but important question: who gets to set the guardrails for military use of artificial intelligence -- the executive branch, private
[3]
Why replacing Anthropic with OpenAI at the Pentagon could take months
Swapping out one AI model on a classified network for another takes minutes. Retraining the people who've learned to rely on it will take much longer The Pentagon has put Anthropic on the clock. On Thursday, the Department of Defense formally notified the company that it has been deemed a "supply
[4]
Anthropic CEO Dario Amodei could still be trying to make a deal with Pentagon | TechCrunch
Anthropic's $200 million contract with the Department of Defense (DoD) broke down last week after the two parties failed to come to an agreement over the degree to which the military could obtain unrestricted access to Anthropic's AI. When the DoD made a deal with OpenAI instead, it seemed that
[5]
The Pentagon's Anthropic Feud 'Should Be a Wake-Up Call for Congress'
Expertise Artificial intelligence, home energy, heating and cooling, home technology. The contract dispute between the US Department of Defense and the AI developer Anthropic that boiled over at the end of February exposed in stark terms how laws and regulations have failed to keep up with the
[6]
Anthropic Has Brought Something New to AI: The Power to Say 'No'
For years technology has been defined by the unstoppable growth of a handful of companies. Big Tech's consolidation of power seemed a foregone conclusion even as Sam Altman's OpenAI sparked an artificial intelligence boom with ChatGPT. Having promised to build AI for humanity, Altman became a proxy
[7]
Palantir faces challenge to remove Anthropic from Pentagon's AI software
NEW YORK, March 4 (Reuters) - Palantir (PLTR.O), opens new tab is the latest company to face the painful task of unwinding from Anthropic in the wake of the AI lab's dispute with the Pentagon over safety guardrails, raising questions about a key military software platform. Palantir's Maven Smart
[8]
Anthropic collides with the Pentagon over AI safety -- here's everything you need to know
As Anthropic releases its most autonomous agents yet, a mounting clash with the military reveals the impossible choice between global scaling and a "safety first" ethos On February 5 Anthropic released Claude Opus 4.6, its most powerful artificial intelligence model. Among the model's new features
[9]
Anthropic is reportedly back in talks with the Defense Department
Anthropic is reportedly trying to reach a new deal with the US Defense Department, which could prevent the government from labeling it a supply chain risk. According to Financial Times and Bloomberg, Anthropic CEO Dario Amodei has resumed talks with the agency over the use of its AI models. In
[10]
Anthropic and the Pentagon are back at the negotiating table, FT reports
Anthropic CEO Dario Amodei looks on after a meeting with French President Emmanuel Macron during the AI Impact Summit in New Delhi on February 19, 2026. Anthropic CEO Dario Amodei is back at the negotiating table with the U.S. Department of Defense after the breakdown of talks on Friday over the
[11]
The Unaddressed Problem With the Pentagon's AI Dispute
The weekslong conflict between Anthropic and the Department of Defense is entering a new phase. After being designated a supply-chain risk by DOD last week, which effectively forbids Pentagon contractors from using its products, the AI company filed a lawsuit against DOD this morning alleging that
[12]
Opinion | The Future We Feared Is Already Here
For years now, questions about A.I. have taken the form of "what happens if?" What happens if A.I. begins replacing workers? What happens if it becomes capable of writing its own code? What happens if it begins to deceive those testing its capabilities? What happens if governments use it for
[13]
AI-driven warfare is here, and the Iran strikes show how fast it's advancing
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Cutting corners: When the war in Ukraine began in 2022, it was hailed as the first conflict to utilize the full spectrum of modern technology. The war Iran, on the other hand, is the first where AI
[14]
What TikTok and Huawei Can Teach Anthropic
The Pentagon formally notified Anthropic PBC last week that its products have been deemed a supply-chain risk, marking the first time Washington has publicly placed that label on an American company. But if it sounds like a death knell, it isn't. Such attacks are usually reserved for Chinese tech,
[15]
Dario Amodei Is Reportedly Taking One More Stab at Making Nice with the Pentagon
The most bizarre story in the history of tech policy refuses to end. After the week he just went through, Anthropic CEO Dario Amodei is somehow taking another stab at negotiating a deal with the Pentagon, according to anonymous sources who leaked information to the Financial Times. The story so
[16]
Exclusive: Anthropic investors push to de-escalate Pentagon clash over AI safeguards, sources say
SAN FRANCISCO, March 4 (Reuters) - Some Anthropic investors are racing to contain fallout from the AI research lab's dispute with the Pentagon, seven people familiar with the matter said, for fear that an ongoing spat could devastate the company's business. In recent days, CEO Dario Amodei has
[17]
Anthropic lost the Pentagon but won over America
Being declared a threat to national security can have a silver lining. After the Pentagon blacklisted artificial intelligence start-up Anthropic last week in a dispute over how its Claude chatbot could be used in war, an American public largely unaware of the company raced to download its app,
[18]
Iran war exposes the expanding role of AI in military strike planning
The joint U.S. and Israeli offensive on Iran has done more than escalate a volatile regional conflict. It has revealed how algorithm-based targeting and data-driven intelligence reform the mechanics of warfare. In the first 12 hours alone, U.S. and Israeli forces reportedly carried out nearly 900
[19]
How Anthropic's AI business risk could become existential in battle with Trump administration
Defense Department CTO Emil Michael: We can't be reliant on any one AI provider anymore Anthropic has been experiencing significant growth, a rapid rise driven largely by enterprise demand for its AI systems. Roughly 80% of the company's business now comes from enterprise customers, Anthropic CEO
[20]
Anthropic's Ethical Stand Could Be Paying Off
The AI company gave up a $200 million contract -- and might be getting something more valuable in return. At first glance, last week looked like a catastrophe for Anthropic. The AI company refused to let the U.S. government use its products to surveil the American public or direct autonomous
[21]
For OpenAI and Anthropic, the Competition Is Deeply Personal
Mike Isaac has covered the knock-down, drag-out battles of the tech industry since 2010. It was not that long ago that Sam Altman's OpenAI appeared to be enjoying a comfortable lead in the corporate race to bring artificial intelligence to the masses. OpenAI created the fastest-growing consumer
[22]
Whatever This Is, We’ve Never Seen Anything Like It
Blacklisting Anthropic feels like a peek at an uncertain future. If you're confused about what's happening with Anthropic, you're not alone. The U.S. Department of Defense decided to pick a fight with Anthropic last week, a fight that ended with Defense Secretary Pete Hegseth insisting that no
[23]
Anthropic's Amodei Reopens AI Discussions with Pentagon, FT Says
A resolution would help clear the air around Anthropic, which has been impacted by the Pentagon dispute, and could also complicate rival efforts, such as OpenAI's agreement with the Pentagon. Anthropic PBC chief Dario Amodei has resumed discussions with the Pentagon about the way its AI models are
[24]
How AI firm Anthropic wound up in the Pentagon's crosshairs
Standoff with DoD over Claude chatbot reignites debate over how AI will be used in war - and who will be held accountable Until recently, Anthropic was one of the quieter names in the artificial intelligence boom. Despite being valued at about $350bn, it rarely generated the flashy headlines or
[25]
'Straight up lies': Anthropic CEO attacks OpenAI's US military announcement in leaked memo -- as new report suggests company is back in talks with Pentagon
* Anthropic CEO Dario Amodei has sent out a lengthy internal memo * It attacks OpenAI's messaging around its new Pentagon deal * Anthropic and Claude may still be in talks with the US government If you thought the debate around AI company dealings with the US military was going to simmer down,
[26]
Not so fast: Anthropic and US military might do business after all
Anthropic, the AI company behind the popular Claude AI chatbot, received praise last week for standing up to the Trump administration over the U.S. military's use of its AI tools. However, the company may be reversing course. According to a new report from the Financial Times, Anthropic and the
[27]
Anthropic ban may threaten the military's AI advantage over China
Why it matters: The international race for AI advantage is not measured in years, but weeks and days. * Alienating a leading American AI company and ripping and replacing existing tech could give other countries, especially China, a leg up. Driving the news: AI's use in Venezuela, leading to the
[28]
Opinion | Anthropic is fighting a battle the country needs
Anthropic CEO Dario Amodei at the World Economic Forum annual meeting in Davos, Switzerland, on Jan. 23. (Fabrice Coffrini/AFP/Getty Images) Standing up to unreasonable and ethically challenging requests from the government ought to be commonplace in a free country. That's what the artificial
[29]
Top Pentagon official recalls the 'whoa moment' when defense leaders realized how indispensable Anthropic is and saw the of risk losing access | Fortune
The Defense Department's reliance on Anthropic's AI came as a shocking realization that ultimately led to their dramatic schism, according to a top Pentagon official. Emil Michael, the department's under secretary for research and engineering as well as its chief technology officer, detailed the
[30]
Anthropic is having a huge 2026. It's only March
Anthropic CEO Dario Amodei (Krisztian Bocsi/Bloomberg via Getty Images) Anthropic spent years being the responsible AI company. In 2026, it became the most disruptive one. The same tools it developed under strict safety guidelines are now destabilizing enterprise software, reshaping how engineers
[31]
Dario Amodei Says Trump Is a Dictator
Can't-miss innovations from the bleeding edge of science and tech Anthropic CEO Dario Amodei's insistence that the company's AI models may not be used for mass surveillance of Americans or directing killer drones has kicked up a major storm. Defense secretary Pete Hegseth and president Donald
[32]
Trump's Former AI Adviser Is Furious
Dean Ball warns that the targeting of Anthropic is just one piece of a much larger political breakdown. Dean Ball helped devise much of the Trump administration's AI policy. Now he cannot believe what the Department of Defense has done to one of its major technology partners, the AI firm
[33]
Anthropic CEO: We're trying to "deescalate" Pentagon AI standoff to reach "some agreement that works for us and works for them"
Anthropic CEO Dario Amodei told investors on Tuesday that his company is still in talks with the Pentagon "to try to deescalate the situation" following a clash over AI guardrails in the military. Speaking at the Morgan Stanley Technology, Media and Telecom Conference in San Francisco, Amodei said
[34]
Congress must prevent AI surveillance. The Anthropic feud proves it | Ashley Gorski and Patrick Toomey
The company's clash with the Pentagon is a fight over the future of American privacy The US military wants to use its state-of-the-art AI tools to supercharge surveillance against Americans, making it easier than ever to monitor our movements, our search history, and our private associations.
[35]
OpenAI just dragged its own brand
It sounds like a brag-worthy business coup: not just snagging a high-profile client, but doing so just after your chief rival's deal with that same client unraveled in a brutally public way. But artificial intelligence pioneer OpenAI's Pentagon deal didn't end up being a brand-halo event. To the
[36]
Back to the negotiating table? Might there be peace in our time between Anthropic and Trump 2.0 or has the war of words gone too far?
I fired Anthropic. Anthropic is in trouble because I fired them like dogs. Having already attacked the "left-wing nut jobs" at the company, Donald Trump wasn't holding back on his view about AI provider Anthropic on Thursday. The comment from the US President came shortly after Anthropic CEO
[37]
Anthropic's investors could be the key to ending its Pentagon standoff -- but some investors have opposite views | Fortune
In 2023, as Dario Amodei was fundraising for the company's $750 million Series D round, an investor was seated with the CEO at a dinner when he recalled him getting worked up in a conversation about safety issues around artificial intelligence. "When he was talking about the risks of AI, he
[38]
Anthropic vs. the Pentagon: A threat to America's AI boom
Anthropic CEO Dario Amodei (Samyukta Lakshmi/Bloomberg via Getty Images) The ongoing feud between Anthropic and the Department of Defense has been covered as a tech story, a political soap opera -- culture wars meet AI policy. But the real story is arguably even larger: Can the U.S. win an AI arms
[39]
AI could be giving US lethal edge in Iran war - but there are dangers
Forget science fiction. The age of AI in war is here. Israel has used AI systems in Gaza to flag potential targets and help prioritise operations. The United States military reportedly used Anthropic's model, Claude, during its operation to abduct Nicolas Maduro from Venezuela. And even after
[40]
Anthropic resumes $200 million US Defense Department contract talks
Anthropic reportedly resumed talks with the U.S. Defense Department to prevent the government from designating the company a supply chain risk. Negotiations broke down after Anthropic refused to delete a contract clause prohibiting the analysis of bulk acquired data. The Defense Department
[41]
Anthropic chief back in talks with Pentagon about AI deal
San Francisco | Anthropic chief executive Dario Amodei is making a last-ditch attempt to strike a deal with the US Defence Department after the breakdown of negotiations last week left his company at risk of being frozen out of the military's supply chain. Amodei has been holding talks with Emil
[42]
What does the US military's feud with Anthropic mean for AI used in war?
Tech policy professor who served in US air force explains how a feud between an AI startup and the US military illuminates ethical fault lines Anthropic's ongoing fight with the Department of Defense over what safety restrictions it can put on its artificial intelligence models has captivated the
[43]
Anthropic Took a Stand Against the Pentagon. Now It's Scrambling to Save Its Defense Business
Anthropic CEO Dario Amodei is attempting to repair the company's relationship with the U.S. military after a heated dispute with the Pentagon. Amodei has resumed negotiations with the Department of Defense in an effort to preserve Anthropic's defense work and prevent the company from being
[44]
Palantir CEO's rant about the Anthropic-Pentagon feud threatening his company was about a lot more than a dirty word | Fortune
AI "seems much worse for the math people than the word people," Peter Thiel tersely said in 2024. He likely wasn't anticipating that just two years later his Palantir co-founder, CEO Alex Karp, would use some decidedly flowery language to describe people he thought were stupid. "If Silicon Valley
[45]
A guide to the Pentagon's dance with Anthropic and OpenAI - The Economic Times
If Anthropic did not allow the Pentagon to deploy these technologies for "all lawful uses," Hegseth said, he would sever ties with the San Francisco startup.Late last month, Defense Secretary Pete Hegseth delivered an ultimatum to Anthropic, the only company that had provided the Pentagon with
[46]
Trump is using AI to fight his wars - this is a dangerous turning point | Chris Stokel-Walker
The technology most people use only as a chatty tool for daily tasks is reportedly aiding US military aggression. And there is not much we can do about it There are a lot of things that AI can do. It can sort out your shopping list, and it can keep your kids entertained when they're mutinous by
[47]
Anthropic's Dario Amodei Pushes To Salvage Pentagon Deal After Heated Negotiations: Report - Lockheed Martin (NYSE:LMT)
Anthropic CEO Dario Amodei is making a push to revive a Pentagon contract after talks collapsed last week, creating a supply chain designation risk for the privately held AI company. Amodei Pushes to Salvage Pentagon Deal Amid Tensions Amodei met with Emil Michael, undersecretary of Defense for
[48]
Trump's strike on Iran and the new breed of AI wars means bombs can drop faster than the speed of thought | Fortune
AI has entered the war room, and it's not going anywhere anytime soon, according to experts. Despite President Donald Trump telling federal agencies and military contractors to cease business with Anthropic, the U.S. military reportedly used the company's AI model, Claude, in its attack on Iran,
[49]
'AI-first' warfare: America's algorithmic edge in Operation Epic Fury - opinion
AI may have contributed to tactical successes in Tehran and elsewhere In the rapidly unfolding conflict with Iran (known in the US as Epic Fury and in Israel as Roaring Lion), artificial intelligence has ceased to be a back-office analytical tool and has become operationally embedded in
[50]
Big tech group supports Anthropic in Pentagon fight as investors push to de-escalate clash over AI safeguards - The Economic Times
A Big Tech industry group, including Amazon and Nvidia, raised concern over the United States Department of Defense considering labelling Anthropic a supply-chain risk. Investors are seeking a solution as tensions grow over military use of its AI. The dispute could affect customers, revenue growth
[51]
Anthropic Returns to Negotiations With Pentagon Over AI Guardrails | PYMNTS.com
The renewed talks follow a dispute that quickly drew attention across Silicon Valley and Washington. According to a Wednesday (March 3) report by Bloomberg, Amodei had been negotiating with Emil Michael, the U.S. undersecretary of defense for research and engineering, on a contract governing the
[52]
Iran war heralds era of AI-powered bombing quicker than 'speed of thought'
Speed and scale of US military's AI war planning raises fears human decision-making may be sidelined The use of AI tools to enable attacks on Iran heralds a new era of bombing quicker than "the speed of thought", experts have said, amid fears human decision-makers could be sidelined. Anthropic's
[53]
The Anthropic Imbroglio: Who Stands to Lose What and Why
Both sides have lots to lose and it remains to be seen whether the issue is brushed under the carpet or Trump's vengeance will weaken the AI hegemony? When the US government officially notified Anthropic as a supply-chain risk, the first question we asked was how does Dario Amodei get his company
[54]
AI emerges as key player in modern warfare - The Korea Times
U.S. Department of War and Anthropic logos are seen in this illustration taken Sunday. Reuters-Yonhap Artificial intelligence (AI) has moved closer to the center of modern warfare, as evidenced by its role in the recent U.S.-Israeli military strike on Iran. No longer confined to serving as a
[55]
Anthropic back in talks with Pentagon -- days after CEO said he...
Anthropic is back in "last-ditch" talks with the Pentagon to resolve a bitter dispute over AI safeguards -- days after CEO Dario Amodei claimed the clash stemmed partly from its refusal to give "dictator-style praise" to President Trump, according to reports. Amodei has been holding discussions
[56]
Anthropic CEO back in talks with Pentagon over AI deal- FT By Investing.com
Investing.com-- Anthropic CEO Dario Amodei spoke with U.S. Department of War officials as part of a last-ditch effort to hash out a contract for the use of its artificial intelligence models, the Financial Times reported on Wednesday. Amodei has been holding talks with Emil Michael,
[57]
Anthropic investors grow frustrated with CEO after feds ban AI startup
Some Anthropic investors are growing frustrated with CEO Dario Amodei's combative stance toward the Trump administration -- even as as defense contractor Lockheed Martin said it will comply with the government's ban on the AI startup, according to reports. Investors have privately complained that
[58]
Palantir faces challenge to remove Anthropic from Pentagon's AI software
NEW YORK, March 4 (Reuters) - Palantir is the latest company to face the painful task of unwinding from Anthropic in the wake of the AI lab's dispute with the Pentagon over safety guardrails, raising questions about a key military software platform. Palantir's Maven Smart Systems - a software
[59]
Big tech group supports Anthropic in Pentagon fight as investors push to de-escalate clash over AI safeguards
SAN FRANCISCO, March 4 (Reuters) - A big tech industry group consisting of major Anthropic backers Amazon and Nvidia on Wednesday expressed concern over the Pentagon's decision to declare the artificial intelligence company a supply-chain risk as other investors raced to contain fallout from the
[60]
Anthropic investors push to de-escalate Pentagon clash over AI safeguards, sources say
SAN FRANCISCO, March 4 (Reuters) - Some Anthropic investors are racing to contain fallout from the AI research lab's dispute with the Pentagon, seven people familiar with the matter said, for fear that an ongoing spat could devastate the company's business. In recent days, CEO Dario Amodei has
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The Pentagon designated Anthropic a supply chain risk after the AI company refused unrestricted military access to Claude. OpenAI quickly stepped in with its own deal, triggering user backlash and internal resignations. The dispute centers on domestic surveillance and autonomous weapons, revealing a governance vacuum where contract negotiations between CEOs and defense officials are setting AI policy instead of Congress.
Pentagon and Anthropic Clash Over AI Control
A high-stakes contract dispute between the Pentagon and Anthropic has escalated into a legal confrontation that raises fundamental questions about who sets the boundaries for military use of AI
1
. The Department of Defense (DoD) formally designated Anthropic a supply chain risk after the company refused to grant unrestricted access to its Claude AI models, a label typically reserved for foreign adversaries2
. Defense Secretary Pete Hegseth reportedly gave Anthropic CEO Dario Amodei a deadline to allow the DoD unrestricted use of its AI systems for "all lawful purposes," but the company stood firm on two red lines: preventing domestic surveillance of U.S. citizens and prohibiting fully autonomous weapons without human oversight3
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Source: New York Post
The dispute centers on whether AI guardrails should be embedded in the technology itself or left to government oversight. Anthropic invested heavily in training its systems to refuse certain high-risk tasks, including assistance with surveillance
2
. Hegseth objected to what he described as "ideological constraints" in commercial AI systems, declaring that "we will not employ AI models that won't allow you to fight wars"2
. The Pentagon's designation means no contractor, supplier, or partner doing business with the U.S. military may conduct commercial activity with Anthropic, though this action will almost certainly face legal challenges2
.
Source: Korea Times
OpenAI Steps In as Anthropic Exits
Within hours of Anthropic's blacklisting, OpenAI announced it had signed a defense contract to deploy its models on military classified networks, securing the deal its rival just lost
3
. The move triggered immediate backlash, with users uninstalling ChatGPT and pushing Claude to the top of App Store charts1
. At least one OpenAI executive quit over concerns that the announcement was rushed without appropriate guardrails in place1
. OpenAI CEO Sam Altman later posted that the Pentagon affirmed its AI would not be used by the department's intelligence agencies5
.Amodei reportedly sent a message to Anthropic staff calling the OpenAI deal "safety theater" and the messaging around it "straight up lies," adding that "the main reason they accepted and we did not is that they cared about placating employees, and we actually cared about preventing abuses"
4
. Despite the public vitriol, reporting from the Financial Times and Bloomberg suggests Amodei resumed negotiations with Pentagon official Emil Michael in an attempt to compromise on a contract4
.Operational Challenges of Replacing Claude
Swapping out one AI model on a classified network for another takes minutes, but retraining personnel who've learned to rely on it will take much longer
3
. Claude became the first large language model publicly known to operate in the Pentagon's classified environment in late 2024, accessed through tools like Claude Gov3
. Lauren Kahn, a researcher at Georgetown University's Center for Security and Emerging Technology and former Pentagon official, describes its deployment as more like a chatbot than a free-roaming agent, sitting "on top" of existing software in tightly controlled corners3
.Each integration must be offboarded piece by piece, and whatever replaces Claude must clear strict security reviews before touching a classified system. Software changes inside the Pentagon can be "excruciating"—even installing Microsoft Office "takes months and months and months," according to Kahn
3
. Every AI model fails in characteristic ways, and operators who spent months using Claude learned those quirks through trial and error. Kahn worries about "a slightly heightened risk of automation bias in the early stages as they're working out the kinks" with the replacement model3
.Related Stories
Governance Vacuum Exposes Legislative Gaps
The controversy reveals a fundamental governance vacuum where critical policy decisions about AI are being settled through contract negotiations between CEOs and defense officials rather than through democratic processes
5
. "This week exposed a real governance vacuum, and it should be a wake-up call for Congress," said Hamza Chaudhry, AI and national security lead at the Future of Life Institute5
.The ethical concerns center on two substantive issues. First, opposition to domestic surveillance touches on well-established civil liberties concerns, though current laws aren't actually clear on AI's role
5
. The risk isn't that Claude will spy on Americans directly, but that AI tools will process data the government already has—or could buy from private data brokers without a warrant—into information that would otherwise require one5
. Second, Amodei argued that today's frontier models "are simply not reliable enough to power fully autonomous weapons" without human oversight5
.
Source: Sky News
Impact on Startup Defense Contracting
The question now is whether this controversy will scare other startups away from defense work
1
. The situation is unusual because OpenAI and Claude make products that "no one can shut up about," drawing a spotlight that most defense contractors don't face1
. General Motors makes defense vehicles for the Army and has worked on autonomous versions, but that work flies under the radar1
.Stripped of rhetoric, this resembles a procurement disagreement in a market economy: the military decides what it wants to buy, and companies decide what they're willing to sell under what conditions
2
. Where it becomes troubling is using the supply chain risk designation—a tool meant to address foreign adversaries—to blacklist an American company for rejecting preferred contractual terms2
. OpenAI research scientist Noam Brown posted that he's "afraid of a slippery slope where we become accustomed to circumventing the democratic process for important policy decisions"5
. Greg Nojeim, senior counsel at the Center for Democracy and Technology, noted it's striking that "the Pentagon is rejecting that advice and insisting on being able to use this AI tool to kill people without human intervention"5
.References
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