Defense Production Act set to expire as Trump eyes AI control over Anthropic

2 min read
Defense Production Act set to expire as Trump eyes AI control over Anthropic
PrimeXBT Editorial Team
Reviewed by PrimeXBT

The Defense Production Act's core authorities are set to expire on September 30, 2026, and the Trump administration is leaning on the Cold War-era law to pull frontier AI developers like Anthropic into national security compliance. A new bill, H.R. 7688, would extend the DPA for five more years while a February meeting between Defense Secretary Pete Hegseth and Anthropic CEO Dario Amodei has already tested how far that leverage can reach.

A Korean War-era law repurposed for AI

The Defense Production Act, first enacted in 1950 to keep American factories running during the Korean War, is now central to the administration's strategy for controlling advanced artificial intelligence, with its core authorities due to lapse on September 30, 2026. The law hands the executive branch sweeping powers: prioritizing government contracts, expanding industrial production, and responding to national emergencies. It has been reauthorized more than 50 times since 1950, applied to everything from wartime manufacturing to pandemic-era supply chains.

That history is now colliding with frontier AI policy. In February 2026, Hegseth met with Amodei and reportedly threatened to invoke the DPA to enforce compliance over military use of Anthropic's AI models. The message was blunt: cooperate with defense applications, or the government has tools to compel it.

Anthropic's safety stance meets national security pressure

Anthropic has positioned itself as the "safety-first" AI lab and has historically maintained restrictions on how its models can be used in military contexts. The February confrontation therefore set the company's corporate AI ethics policy directly against a national security imperative backed by Cold War-era executive power.

The administration has since moved on parallel fronts. Executive Order 14409, issued June 2, 2026, emphasizes developing secure AI technologies for national security applications. Three days later, NSPM-11 directed federal agencies to accelerate AI adoption across the national security apparatus.

A legislative fight over the deadline

The September 30, 2026 expiration date exists because of a one-time extension tucked into the FY2026 National Defense Authorization Act. A new bill, H.R. 7688 proposes extending DPA authorities for five years, pushing the deadline to September 30, 2031, while also adding modernization provisions meant to update a law its original 1950 authors never wrote with AI in mind.

Source: Crypto Briefing

Trading involves risk.

Most traded markets

XAU / USD
+1.11% 4,389.72
BRENT
-0.14% 104.797
BTC / USD
+5.41% 80,830.8
EUR / USD
+0.05% 1.14803
USTEC
+0.17% 29,473.44
GOOG
+1.13% 346.40
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse World News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.