Pentagon Labels AI Firm Anthropic a Supply Chain Risk, Sparking Controversy

The Pentagon has officially designated artificial intelligence company Anthropic as a supply chain risk, effective immediately. This unprecedented move could compel other government contractors to cease using Anthropic's AI chatbot, Claude. The decision follows accusations from President Donald Trump and Defense Secretary Pete Hegseth that the company endangers national security, stemming from Anthropic CEO Dario Amodei's refusal to compromise on concerns regarding potential mass surveillance or autonomous weapons use of their products.

This designation appears to close the door on further negotiations with Anthropic, a San Francisco-based company that previously threatened legal action, calling the move "legally unsound" and "never before publicly applied to an American company." The Pentagon asserts its stance is based on the military's ability to use technology for all lawful purposes, stating it will not allow a vendor to restrict the lawful use of a critical capability. While some military contractors like Lockheed Martin are already cutting ties, it remains unclear if the directive applies to all federal government contractors or only those partnered with the military.

The decision to apply a rule typically reserved for foreign adversaries has drawn significant criticism from both sides of the political spectrum. Critics, including U.S. Senator Kirsten Gillibrand and former FTC chief technologist Neil Chilson, view it as a dangerous misuse of authority that could harm the U.S. AI sector and the military's access to advanced technology. A group of former defense and national security officials also expressed "serious concern," arguing the move sets a dangerous precedent by penalizing an American company for upholding safeguards against domestic surveillance and autonomous weapons.