Pentagon brands Anthropic a 'supply chain risk' in retaliation for refusing unrestricted military use of its AI models
On March 5, 2026, the U.S. Department of Defense formally notified Anthropic that the company and its products were designated a "supply chain risk," effective immediately — a label normally reserved for firms tied to foreign adversaries and reportedly the first publicly applied to an American company. The designation, which bars defense contractors from using Anthropic's technology, followed the breakdown of contract talks: the Pentagon demanded access to Anthropic's Claude models "for all lawful purposes," while the company's acceptable-use policy barred their use for fully autonomous weapons and mass domestic surveillance of Americans. After Anthropic refused to drop those limits, President Trump on February 27 ordered agencies and contractors to halt business with the company and called its stance a "disastrous mistake," and Defense Secretary Pete Hegseth tied the designation directly to the firm's refusal to comply — even as the military continued using Claude to support intelligence and targeting work.