Pentagon threatens to label Anthropic ‘supply chain risk’ over AI limits

The Pentagon has threatened to designate artificial intelligence firm Anthropic as a “supply chain risk” amid a dispute over the military use of its Claude AI model, according to a report published Monday.

U.S. Defense Secretary Pete Hegseth is said to be close to severing the department’s relationship with the company, Axios reported. If the designation is imposed, all Defense Department contractors would be required either to stop working with Anthropic or cut ties with the Pentagon.

“It will be an enormous pain to disentangle, and we are going to make sure they pay a price for forcing our hand like this,” an anonymous Defense Department official told the outlet.

Claude is currently the only AI model authorised for use within the Defense Department’s classified systems and has been deployed in sensitive military operations, the report said. The Pentagon and Anthropic have been negotiating the terms governing its use for several months.

Anthropic is reportedly willing to ease some restrictions for Pentagon use but has drawn firm boundaries around mass surveillance of Americans and the development of weapons capable of operating without human oversight. It remains unclear which side disclosed details of the closed-door discussions.

The Pentagon is seeking assurances that it can use software from Anthropic as well as from OpenAI, Google and xAI for what it describes as “all lawful purposes.”

“The Department of War’s relationship with Anthropic is being reviewed. Our nation requires that our partners be willing to help our warfighters win in any fight,” Pentagon spokesperson Sean Parnell said in a statement provided to Anadolu.

“Ultimately, this is about our troops and the safety of the American people,” he added.

Anthropic did not immediately respond to a request for comment. However, the company told Axios it is “having productive conversations, in good faith, with DoW on how to continue that work and get these new and complex issues right.”

According to the report, OpenAI, Google and xAI have agreed to lift certain internal safeguards if the Pentagon chooses to use their AI models, though only for unclassified activities.

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