Anthropic labelled a supply chain risk by Pentagon

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Lily Jamali,North America Technology correspondentand

Kali Hays,Technology reporter

Reuters US Secretary of Defence Pete Hegseth standing in a blue suit and tie.Reuters

The US has officially deemed artificial intelligence (AI) firm Anthropic a supply chain risk — the first time the government has given that label to a US firm.

The Pentagon's designation is the latest escalation in a clash over Anthropic's refusal to give the government unfettered access to its AI tools over concerns they would be used for mass surveillance and autonomous weapons.

In a statement, a senior Pentagon official said the supply chain risk designation was "effective immediately."

The AI developer had been in talks with the Department of Defense in recent days, even after their negotiations spilled into public view last week, sources familiar with discussions have told the BBC.

A Pentagon official said: "From the very beginning, this has been about one fundamental principle: the military being able to use technology for all lawful purposes."

"The military will not allow a vendor to insert itself into the chain of command by restricting the lawful use of a critical capability and put our warfighters at risk."

Last week, US President Donald Trump said he would direct every federal agency to immediately stop using technology from AI developer Anthropic.

"We don't need it, we don't want it, and will not do business with them again!" Trump wrote in a Truth Social post on Friday.

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