Anthropic Denies US Military’s “Supply Chain Risk” Claim as Trump Bars Agency Use

Anthropic’s legal team issued a rapid rebuttal on X, saying the Pentagon’s “supply‑chain risk” label ignores the firm’s good‑faith negotiations with the Defense Department, according to the company’s own statement. The startup insisted that its two red‑line exceptions – prohibiting use of Claude for mass domestic surveillance and fully autonomous weapons – have never been applied to any government mission, and that no formal request from the Department of War has been received.

The backlash escalated after President Donald Trump ordered all federal agencies to cease using Anthropic’s technology, a move reported by the Pittsburgh Post‑Gazette and The Indian Express. Trump’s directive follows Secretary of Defense Pete Hegseth’s Friday announcement that any contractor, supplier or partner doing business with the military must immediately stop any commercial activity with Anthropic.

TechCrunch noted that the Pentagon’s designation could force a six‑month phase‑out of Anthropic services across the federal government, potentially disrupting contracts worth hundreds of millions of dollars. The agency’s move comes amid a broader federal push to tighten AI safety standards, according to Wired’s coverage of the dispute.

CNET quoted Trump’s criticism of Anthropic as “woke,” linking the ban to the company’s refusal to grant the DoD permission for the contested use cases. The president’s order adds pressure on defense contractors who rely on Claude for internal tools, as they now face compliance hurdles to avoid violating the new supply‑chain restriction.

Analysts warned that the standoff could reverberate through Silicon Valley, where Anthropic’s models are integrated into a growing ecosystem of enterprise applications. If the supply‑chain risk label holds, the startup may lose access to a key revenue stream, while the Pentagon may need to source alternative AI providers to meet its operational needs.