American artificial intelligence giant Anthropic, locked in a months-long dispute with the US government, has signed a pact with Australia to cooperate on safety regarding the controversial technology.
Anthropic's CEO Dario Amodei will sign a memorandum of understanding in a meeting with Prime Minister Anthony Albanese in Canberra on Wednesday.
Under the agreement, the company will share findings on the risks and capabilities of AI, collaborate with research institutions, and take part in safety and security evaluations as part of a commitment to work with Australia's AI Safety Institute.
The maker of popular chatbot Claude has also agreed to support the local AI ecosystem, collaborate on the development of the technology, and ensure its future Australian operations will align with the government's expectations regarding data centres and AI infrastructure developers.
"Australia's investment in AI safety makes it a natural partner for responsible AI development," Mr Amodei said.
The decision to form closer ties with Australia comes as the Pentagon designated Anthropic a "supply-chain risk" in early March, barring US government contractors from using the company's technology in work for the military.
Anthropic has since filed lawsuits against the US Department of Defense, escalating a months-long feud over the company's insistence on implementing safeguards to prevent the military's potential use of its technology for mass domestic surveillance and fully autonomous weapons.
The Australian government has heralded its arrangement with Anthropic as a way to capture the opportunities of AI, while ensuring its citizens stay safe.
"(This) sends a clear signal to Australians that we are open for business, where investment aligns with Australia’s priorities and Australian values," Industry Minister Tim Ayres said.
The federal government in June 2025 unveiled a $20 billion deal with Amazon Web Services to fund data centre infrastructure, while its New South Wales counterpart on Friday backed a plan for 15 data centre projects worth $51 billion.
But questions have been raised over the viability of the data centre industry due to concerns over the vast amount of resources it uses.
Some large data centres use up to 40 million litres of water per day, enough for up to 80,000 Australian homes, according to the Water Services Association of Australia.
They also require significant amounts of land, generate a lot of heat, and can create noise pollution which affects nearby communities and animals, the Climate Council has found.
"We want to make sure that this massive interest in data centre investment in our country comes with obligations, including natural resource management, water obviously, energy and a whole range of relevant factors," Treasurer Jim Chalmers told reporters.
Dr Chalmers is set to meet with Mr Amodei later on Wednesday.
