Pentagon designates Anthropic as a supply chain risk, prompting legal challenge

The U.S. Pentagon has formally designated artificial intelligence company Anthropic and its AI chatbot Claude as a ‘supply chain risk,’ a move that could force government contractors to cease using the platform. This unprecedented decision follows accusations from former President Donald Trump and Defense Secretary Pete Hegseth, claiming Anthropic’s technology could threaten national security. CEO Dario Amodei has stated that the action is legally unsound and plans to challenge it in court. Anthropic sought to limit its technology’s use in mass surveillance and autonomous weapons, citing ethical concerns. Despite these restrictions, Claude is widely integrated into military and national security systems. Some contractors, including Lockheed Martin, have already begun transitioning away from Anthropic in compliance with the Pentagon’s directive. Critics argue that applying a supply chain risk designation to a domestic company misuses regulations originally intended to counter foreign threats, with former defense and intelligence officials warning this sets a dangerous precedent. Meanwhile, Anthropic has experienced a surge in consumer interest, surpassing competitors like ChatGPT and Google Gemini in app downloads globally. The dispute has also intensified competition between Anthropic and OpenAI, as OpenAI secures new military AI contracts. The situation raises broader questions about the balance between ethical AI safeguards and military adoption of advanced technology.