Pentagon Says Anthropic Still Supply Chain Risk Despite Commerce Secretary's Claims of Restored Relations

Anthropic still flagged as risk to defense industrial base, US official says

WASHINGTON, Sept 3 (Reuters) - Anthropic is still considered a "Supply Chain Risk" by the U.S. defense department and defense industry, the under secretary of defense for research and ⁠engineering said, after suggestions of a thaw in relations between the AI company and the Trump administration. Emil Michael posted the remarks on X a day after Commerce Secretary Howard Lutnick told Axios that Anthropic is "back on the right ⁠side," adding, "we trust Anthropic" in an interview. A federal judge ruled in favor of Anthropic on Aug. 27, determining that ⁠the Pentagon illegally punished the AI company for criticizing the government and that ⁠the Pentagon's decision was "illegal and baseless." The Defense Department did not respond ⁠to a request for comment. Reporting by Mike Stone in Washington; Editing by Mark Porter and Philippa Fletcher Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Data Privacy Mike Stone Thomson Reuters Mike Stone is a Reuters reporter covering the U.S. arms trade and defense industry. Most recently Mike has been focused on the Golden Dome missile defense shield. Mike also spends a lot of his time writing on Ukraine and how industry has adapted, or faltered as it supports that conflict. Mike, a New Yorker, has extensively covered how the U.S. has supplied Ukraine with weapons, the cadence, decisions and milestones that have had battlefield impacts. Before his time in Washington Mike's coverage focused on mergers and acquisitions for oil and gas companies, financial institutions, defense companies, consumer product makers, retailers, real estate giants, and telecommunications companies.

Anthropic back on 'right side' with Trump administration, US Commerce secretary says

WASHINGTON, Sept 2 (Reuters) - U.S. Commerce Secretary Howard Lutnick said AI giant Anthropic is "back on the right side" with the Trump administration, according to an Axios article published ⁠on Wednesday, suggesting that the fraught relationship between the two sides has improved. Lutnick made the comment days after a U.S. judge sided with Anthropic in the company's fight with the American military over AI safety on ⁠the battlefield. U.S. Defense Secretary Pete Hegseth had blocked Anthropic from certain military contracts because the company ⁠refused to allow the U.S. to use its Claude AI models for domestic surveillance ⁠or autonomous weapons. Anthropic sued in California court. Anthropic did not ⁠immediately respond to a request for comment from Reuters. Reporting by Courtney Rozen; Editing by Mark Porter Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Government * Civil Rights * Public Policy Courtney Rozen Thomson Reuters Courtney Rozen reports on the world's largest technology companies from Washington, D.C., focusing on the relationship between the tech industry and the U.S. government. She reported on DOGE and the federal workforce during the first year of U.S. President Donald Trump's second term. Prior to joining Reuters, she was a White House correspondent at Bloomberg Government. She graduated from American University with a master's degree in journalism. Contact: [email protected]

Lutnick: Anthropic is "back on the right side" with Trump administration

Why it matters: The statement marks a remarkable turnaround in a relationship strained by a bitter fight over national security and AI safeguards. What they're saying: Asked if he trusts Anthropic CEO Dario Amodei, Lutnick told Axios' Mike Allen: "We trust Anthropic." * "They've done what we asked. They're back on the right side. So the answer is: Yes," Lutnick said in an interview on Tuesday. The big picture: The declaration comes as Anthropic co-founder Tom Brown takes a more prominent role in the company's relationship with the White House, including a headlining spot at this week's G20 Innovation Ministerial. * "Really excited for our conversation, so I'd like to introduce you all to Tom Brown, one of the founders of Anthropic," Lutnick said on Wednesday to a room full of G20 ministers. * Lutnick kicked off the discussion offering Brown an opportunity to introduce himself to an international audience: "I don't think they know you so well. Anthropic, of course, is famous, but a little story helps." What they're saying: Brown praised President Trump's pro-data center post on Truth Social this week. * "I really love Trump's post from earlier this week... where he was pointing out that the data centers are just an enormous source of prosperity," Brown said. * "They produce a ton of jobs. They produce taxes. Now the way that we design them, we actually bring on more power to the grid," he said. * Brown also highlighted Anthropic's support for the administration's ratepayer pledge. Between the lines: Industry knows aligning with the Trump administration goes a long way for policy priorities. Catch up quick: Personality differences added fuel to the fire in a clash between the Trump administration and Anthropic earlier this year that resulted in sweeping export controls on the company's most advanced models. * Brown was instrumental in patching up the relationship, holding multiple conversations with Lutnick and National Cyber Director Sean Cairncross. * A federal judge in August, meanwhile, struck down the Pentagon's blacklisting of Anthropic as a supply-chain risk, ruling that the government's actions violated Anthropic's constitutional rights. * The company is also fighting a separate Pentagon designation under a different statute in the D.C. Circuit. The bottom line: Brown offers a reset for a company once on the outs with the White House.

Pentagon says Anthropic supply chain risk ban is still in effect

The Pentagon's designation of Anthropic as a supply chain risk remains in force, a senior Defense Department official said Thursday, contradicting signals from Commerce Secretary Howard Lutnick that the AI company had resolved its differences with the Trump administration. Emil Michael, the under secretary of defense for research and engineering, posted on X $TWTR that "Anthropic is still a designated Supply Chain Risk at @DeptofWar and for the Defense Industrial Base." Michael's message arrived one day after Lutnick told Bloomberg Television that Anthropic had "gotten religion" and patched up its differences with the administration. A top Anthropic executive had appeared alongside Lutnick at a Group of 20 technology meeting in North Carolina on Wednesday. The Defense Department did not respond to a request for comment, according to Reuters.

Anthropic back in good standing with Trump administration

Commerce Secretary Howard Lutnick's remarks come days after a federal judge sided with Anthropic in its dispute with the Pentagon over AI safety Anthropic is back in good standing with the Trump administration, Commerce Secretary Howard Lutnick said on Wednesday, according to Reuters. Lutnick made the comment in an interview with Axios, saying the company had restored its relationship with the White House. The statement came just days after an August 27 federal court ruling in Anthropic's favor in its dispute with the U.S. military over how AI should be used in combat. The friction began after Defense Secretary Pete Hegseth cut Anthropic off from certain military contracts when the company declined to permit use of its Claude AI models for domestic surveillance or autonomous weapons systems, prompting Anthropic to file suit in California. Anthropic and the Commerce Department did not respond to requests for comment from Reuters. Also on Wednesday, Anthropic co-founder Tom Brown appeared at a tech-focused G20 event in North Carolina. Brown called on the attending officials to streamline permitting for data center construction within their respective countries.

Anthropic: US Commerce chief says Anthropic back on 'right side' with Trump, Axios reports

U.S. ⁠Defense Secretary Pete Hegseth had blocked Anthropic from certain military contracts because the company refused to allow the U.S. to use its Claude AI models for domestic surveillance ⁠or autonomous weapons. Anthropic sued in California court. U.S. Commerce Secretary Howard Lutnick said AI giant Anthropic is "back on the right side" with the Trump administration, Axios reported on Wednesday citing ⁠an interview. U.S. ⁠Defense Secretary Pete Hegseth had blocked Anthropic from certain military contracts because the company refused to allow the U.S. to use its Claude AI models for domestic surveillance ⁠or autonomous weapons. Anthropic sued in California court. On August 27, a U.S. ⁠judge sided with Anthropic in the company's fight with the American military over AI safety on the battlefield. Anthropic and the Commerce Department did not immediately respond to requests for comment from Reuters. Anthropic co-founder Tom Brown appeared on stage at a tech-focused G20 event ⁠in North Carolina on Wednesday morning. Brown stressed the importance of data centers at the gathering, urging the gathered officials to grant permits to build them in their countries.

Anthropic back on 'right side' with Trump admin after Pentagon flap: Howard Lutnick

Commerce Secretary Howard Lutnick said AI giant Anthropic is "back on the right side" with the Trump administration, Axios reported on Wednesday citing an interview. Defense Secretary Pete Hegseth had blocked Anthropic from certain military contracts because the company refused to allow the US to use its Claude AI models for domestic surveillance or autonomous weapons. Anthropic sued in California court. On Aug. 27, a US judge sided with Anthropic in the company's fight with the American military over AI safety on the battlefield. Anthropic and the Commerce Department did not immediately respond to requests for comment from Reuters. Anthropic co-founder Tom Brown appeared on stage at a tech-focused G20 event in North Carolina on Wednesday morning. Brown stressed the importance of data centers at the gathering, urging the gathered officials to grant permits to build them in their countries.