Pentagon is reviewing its ties with Anthropic and could label the firm a “supply chain risk”, a move that may bar defence contractors from using its AI tools, according to a report by Axios. The step, if taken, would significantly limit Anthropic’s role in US defence operations.
The US Department of War is reviewing its relationship with Anthropic and may designate the firm a “supply chain risk”, a move that could prevent defence contractors from using the company’s AI tools, according to a report by Axios. Such a designation would significantly restrict the company’s role in US defence operations.
Conditions on military use under scrutiny
Chief Pentagon spokesman Sean Parnell said the partnership is under assessment, stressing that US military partners must be willing to meet operational requirements. He indicated that ending the relationship would be disruptive but suggested the department is prepared to proceed if concerns are not resolved.
Anthropic’s AI model is currently used in certain classified military applications, though officials say competing systems are close in capability. Reports indicate the model was deployed in a January operation linked to Nicolás Maduro, highlighting its integration into defence workflows.
Company stance and ongoing discussions
Anthropic chief executive Dario Amodei has maintained strict conditions on how the technology can be used, opposing applications involving domestic surveillance or fully autonomous weapons. The company said it is engaged in constructive discussions with the Pentagon to address the concerns and determine a path forward.
Contract value and strategic implications
The contract under review is reportedly valued at up to $200 million — a relatively small share of Anthropic’s broader revenue — but the potential designation could carry wider strategic and reputational consequences. Officials are also evaluating alternatives from OpenAI, Google and xAI.
If labelled a supply chain risk, major defence contractors would be required to certify that they do not use Anthropic’s systems in their operations, a step that could reshape procurement decisions across the US defence technology ecosystem.
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