DOD Deems Anthropic a 'Supply' Chain Risk to National Security'

Anthropic just got an official black mark from the Pentagon, and it's one that could freeze it out of future US government work. CEO Dario Amodei said on Thursday that the Defense Department has formally designated the AI giant a "supply chain risk to national security," a label usually reserved for companies linked to China, per the New York Times. The move, first reported by Bloomberg, follows a standoff over how Anthropic's systems, including its Claude chatbot, could be used within classified military networks. The Pentagon wanted authority to deploy the tools for any lawful mission; Anthropic pushed for limits, including bans on domestic surveillance and autonomous lethal weapons.

When talks collapsed, Defense Secretary Pete Hegseth announced that no military contractors or partners could do business with Anthropic, and President Trump ordered federal agencies to phase out its tech within six months. "This has been about one fundamental principle: the military being able to use technology for all lawful purposes," the Pentagon said in a Thursday statement, per the AP. "The military will not allow a vendor to insert itself into the chain of command by restricting the lawful use of a critical capability and put our warfighters at risk."

Democratic Sen. Kirsten Gillibrand, who sits on the Senate Armed Services Committee, slammed the move to apply such a designation that's typically reserved for foreign actors. "This reckless action is shortsighted, self-destructive, and a gift to our adversaries," she said in a statement. Plus, removing Claude from government use is "going to be painful for all involved," Georgetown analyst Lauren Kahn tells Bloomberg.

Anthropic, which currently provides AI used to analyze US intelligence and imagery, says it will challenge the designation in court while helping the Pentagon transition to other providers "for as long as we are permitted to do so," per the Times. OpenAI and Elon Musk's xAI have already stepped in with new classified-systems deals. OpenAI, under fire for initially allowing any "lawful purpose," has since added some limits on use for mass surveillance.