The United States Department of Defense has formally designated artificial intelligence company Anthropic as a supply chain risk, barring its technology from military-related use. The decision marks the first time a US-based firm has received such a classification and has triggered plans for legal action by the company.
In a statement issued Thursday, Anthropic Chief Executive Officer Dario Amodei said the company would challenge the designation in court, arguing the action lacks legal basis. He stated that the order applies narrowly and does not prohibit non-defense commercial partnerships or general access to the company’s AI systems.
The designation was confirmed by the Pentagon and took immediate effect. Defense officials maintained that military operations must retain unrestricted access to critical technologies for lawful use and national security purposes.
Anthropic has previously declined to provide unrestricted defense access to its AI tools, citing concerns around mass surveillance and autonomous weapons development. The company had been engaged in discussions with the Department of Defense in recent weeks, but negotiations did not produce an agreement.
Sources familiar with the talks indicated that company leadership had expected a resolution before tensions escalated. The situation changed after US President Donald Trump announced via Truth Social that federal agencies should cease using Anthropic’s services.
US Defense Secretary Pete Hegseth later stated on X that the company would be designated a supply chain risk and that defense contractors would be barred from commercial engagement with the firm. Anthropic said it received no advance notice of the public announcements.
Individuals close to the company said internal sentiment suggests strained relations with parts of the administration. This reportedly stems from Anthropic’s leadership not aligning publicly or financially with political interests.
Technology company Microsoft said it would continue integrating Anthropic’s AI systems into products for civilian clients but would exclude defense-related deployments. The company said legal reviews determined that non-military collaborations remain permissible.
Anthropic’s tools have been used by US government agencies since 2024, including classified operations. However, as relations deteriorated, rival firm OpenAI secured expanded defense partnerships.
OpenAI Chief Executive Officer Sam Altman stated that the company’s latest defense agreement includes stricter operational safeguards than prior classified AI contracts.
US Senator Kirsten Gillibrand criticized the designation, describing it as harmful to national interests. She said penalizing a domestic technology firm over internal safety standards could weaken the country’s competitive position.
Despite the dispute, Anthropic’s AI assistant Claude continues to see strong global adoption. A senior company executive said more than one million new users register for the service daily, making it one of the most widely downloaded AI applications across multiple countries.
