HARDBALL: Pentagon officials sent Anthropic best and final offer for military use of its AI amid dispute.

Pentagon officials on Wednesday night sent Anthropic their best and final offer in negotiations for use of the company’s artificial intelligence technology, just ahead of a government-imposed deadline, according to sources familiar with the discussions.

It was unclear whether the offer substantially changed what the government has been seeking from the AI startup, or whether the company had agreed.

Defense Secretary Pete Hegseth set a deadline of Friday evening for the company to grant all lawful use for its AI technology or face the loss of its business with the U.S. military, sources familiar with the situation told CBS News.

I guess Tuesday’s Pentagon meeting didn’t go very well.