London Mayor Sir Sadiq Khan has invited artificial intelligence developer Anthropic to expand its operations in the city while criticizing the U.S. government’s decision to designate the company a supply chain risk. The invitation came as tensions between Anthropic and the Trump administration intensified over restrictions the company placed on how its AI tools can be used by the military.
Khan outlined the proposal in a letter to Anthropic chief executive Dario Amodei.
Mayor Criticizes U.S. Action Against AI Firm
The letter followed a decision by the Pentagon to classify Anthropic as a supply chain risk after Amodei declined to grant U.S. defense agencies unrestricted access to the company’s AI systems.
“It is extremely concerning to see this kind of behaviour, which is a clear attempt to intimidate and punish Anthropic for refusing to remove ethical safeguards,” Khan wrote.
The mayor said London could support the company if it sought to expand outside the United States.
“I applaud your steadfastness in the face of such pressure,” Khan wrote, adding that the city “could provide an even more significant location and platform for the future of Anthropic.”
A spokesperson for the mayor’s office said discussions had taken place during the week with senior leaders from Anthropic regarding potential expansion.
Anthropic has said it intends to challenge the Pentagon’s designation in court.
White House Defends Government Position
Asked about Khan’s comments and the invitation to the AI developer, a White House spokesperson responded that the administration would not allow companies to limit how the military uses technology.
“As President Trump said, we will never allow a radical left, woke company to dictate how our United States Military fights wars,” the spokesperson told the BBC.
Dispute Centers On Military Use Of AI
The conflict between Anthropic and the U.S. government centers on how the company’s Claude AI system could be used by defense agencies.
Amodei raised concerns during discussions with U.S. Secretary of Defense Pete Hegseth about potential uses of the technology for domestic mass surveillance or autonomous military targeting.
The Pentagon has said such uses would be unlawful and that the military must be able to use technology for “all lawful purposes.”
Last week, President Donald Trump said he would direct all federal agencies to stop using Anthropic’s technology.
Pentagon Ends Negotiations With Company
Anthropic had been in talks with the Department of Defense about potential cooperation.
Those discussions have now ended.
Under Secretary of Defense Emil Michael wrote on X that negotiations were no longer active.
“I want to end all speculation: there is no active [Department of War] negotiation with [Anthropic],” Michael wrote.
The Department of War is a name used by the Trump administration for the Department of Defense.
The Pentagon’s supply chain risk designation is the first time a U.S. company has been given that classification.
Business Partnerships Continue Outside Defense Sector
When the designation was first threatened, people inside Anthropic expressed concern that it could affect relationships with companies that also work with the U.S. government.
So far, those concerns appear limited.
Microsoft said Thursday it would continue using Anthropic technology in its products for customers, except in projects involving the Department of Defense.
“Our lawyers have studied the designation and have concluded that Anthropic products, including Claude, can remain available to our customers,” Microsoft said in a statement to the BBC.
Featured image credits: Flickr
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