The use of the Defense Production Act would preempt state laws and speed permitting for Sable Offshore Corp., a Houston company that has sought to restart production from California offshore platforms. The Santa Ynez Unit consists of three offshore oil platforms that produce crude oil and natural gas off the coast of Santa Barbara, along with an onshore processing facility.
A senior Pentagon official told Business Insider that Anthropic has until 5:01 p.m. Eastern Time on Friday to agree to the Defense Department's terms; otherwise, it will find other levers to compel the AI startup to cooperate with the military. The official said Hegseth is prepared for the use of the Defense Production Act (DPA) - a decades-old wartime law that gives the president broad authority over private companies in the interest of national security - on top of designating Anthropic a supply chain risk.
