The U.S. Department of Defense has designated artificial intelligence company Anthropic as a supply chain risk, marking the first time a U.S.-based technology firm has received such a classification from the government. The decision prevents defense agencies from using the company’s technology and has prompted Anthropic to prepare a legal challenge against the designation.
The Pentagon said the designation took effect immediately. The move follows disagreements between Anthropic and defense officials over access to the company’s AI systems.
Anthropic Plans Court Challenge
Anthropic chief executive Dario Amodei said the company intends to contest the decision in court.
“We do not believe this action is legally sound, and we see no choice but to challenge it in court,” Amodei wrote Thursday evening.
In the same statement, Amodei said the company received a letter from the Department of Defense the previous day informing it of the supply chain risk designation.
He said the classification has a limited scope and does not block all interactions with the company.
“The law requires the Secretary of War to use the least restrictive means necessary to accomplish the goal of protecting the supply chain,” Amodei wrote.
He added that the designation does not prevent contractors working with the Department of Defense from using Anthropic’s technology in unrelated business activities.
Dispute Linked To Military Access To AI Systems
Anthropic had been in discussions with the Department of Defense in recent days regarding potential use of its AI tools.
Those talks did not result in an agreement, according to a person familiar with the discussions. Anthropic has resisted requests to provide unrestricted access to its technology due to concerns that the systems could be used for mass surveillance or autonomous weapons.
The Pentagon said the decision was tied to ensuring military access to technology without limitations.
A defense official said the issue involved the military’s ability to deploy technology for lawful purposes.
“From the very beginning, this has been about one fundamental principle: the military being able to use technology for all lawful purposes,” the official said.
“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.”
Political Tensions Surround Decision
People familiar with the situation said Anthropic leadership had believed a resolution with the Pentagon was close after several weeks of negotiations.
The situation changed after President Donald Trump posted on Truth Social that he was directing federal agencies to stop using the company’s technology.
“We don’t need it, we don’t want it, and will not do business with them again!” Trump wrote.
Defense Secretary Pete Hegseth later wrote on X that Anthropic would be designated a supply chain risk and that businesses working with the military would be prohibited from commercial activity with the company.
Anthropic said it had not received advance notice from either the White House or the Pentagon before the public statements were made.
Microsoft Says Non-Defense Projects Will Continue
Microsoft said it would continue working with Anthropic on commercial products for customers outside the defense sector.
“Our lawyers have studied the designation and have concluded that Anthropic products, including Claude, can remain available to our customer,” Microsoft said in a statement.
The company said Anthropic technology could remain integrated into products provided to customers not involved in U.S. defense operations.
Microsoft added that the exception would apply to projects involving the Department of Defense.
Department Of War Name Used By Administration
The Department of Defense has also been referred to as the Department of War under the Trump administration.
Anthropic’s dispute with the Pentagon centers on the company’s refusal to provide unrestricted access to its AI systems for defense use, particularly in applications involving surveillance or autonomous weapons.
Featured image credits: Heute.at
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