Anthropic challenges Pentagon's supply chain risk label in court over AI safety red lines
65 Sources
[1]
Anthropic to challenge DOD's supply chain label in court | TechCrunch
Dario Amodei said Thursday that Anthropic plans to challenge the Defense Department's decision to label the AI firm a supply chain risk in court, a designation he has called "legally unsound." The statement comes a few hours after the Department officially designated Anthropic a supply chain risk
[2]
It's official: The Pentagon has labeled Anthropic a supply chain risk | TechCrunch
The Department of Defense has officially notified Anthropic leadership that the company and its products have been designated a supply chain risk, Bloomberg reports, citing a senior department official. The designation comes after weeks of conflict between the AI lab and the DOD. Anthropic CEO
[3]
The Pentagon formally labels Anthropic a supply-chain risk
The decision, first reported by The Wall Street Journal on Thursday, citing one source familiar, will bar defense contractors from working with the government if they use Claude, Anthropic's AI program, in their products. Though the designation is typically applied to foreign companies with ties to
[4]
Pentagon Gives Anthropic Supply-Chain Risk Label, CEO Confirms Court Challenge
The next step in a dispute between AI company Anthropic and the US Department of Defense has seen the former designated a supply-chain risk, meaning it will be cut off from partnering with other brands that work with the Pentagon. This comes after a week of failed negotiations between the makers
[5]
Anthropic Tells Judge It Could Lose Billions If US Shuns AI Tool
Anthropic PBC told a judge it could lose as much as billions of dollars in revenue this year and urged quick action on its request to block the Trump administration's declaration of the company as a US supply-chain risk after a blowup with the Pentagon over artificial intelligence safety
[6]
US defense department told Anthropic it is a supply chain risk, CEO says
March 5 (Reuters) - The U.S. defense department has informed Anthropic that the Artificial Intelligence lab is a supply chain risk, Anthropic CEO Dario Amodei said on Thursday. "Yesterday (March 4) Anthropic received a letter from the Department of War confirming that we have been designated as a
[7]
Microsoft backs Anthropic, urging a judge to halt Pentagon's actions against AI company
SAN FRANCISCO (AP) -- Microsoft is throwing its weight behind Anthropic in asking a federal court to block the Trump administration's designation of the artificial intelligence company as a supply chain risk. Microsoft, in a legal filing, is challenging Defense Secretary Pete Hegseth's action last
[8]
Microsoft says Anthropic's products can remain available to customers after security risk designation
Microsoft said Thursday that it will keep startup Anthropic's artificial intelligence technology embedded in its products for clients, excluding the U.S. Department of War. The statement comes on the same day the federal agency informed Anthropic that it would label the company a supply-chain risk.
[9]
Anthropic says it will challenge Defense Department's supply chain risk designation in court
In a new blog post, Anthropic CEO Dario Amodei has admitted that it received a letter from the Defense Department, officially labeling it a supply chain risk. He said he doesn't "believe this action is legally sound," and that his company sees "no choice" but to challenge it in court. Hours before
[10]
Anthropic says it will sue Pentagon over supply chain risk label
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. A hot potato: Anthropic's battle with the American government has taken a new turn. The US has now officially designed the AI company as a supply chain risk. In response, Anthropic has promised to
[11]
Anthropic officially designated a supply chain risk by Pentagon
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
[12]
Pentagon Official Sees Little Chance to Revive Anthropic AI Deal
A top Pentagon official sees little chance of resuming negotiations with Anthropic PBC over military use of its artificial intelligence tools following the company's legal challenge of an unprecedented government move to declare the firm a supply-chain risk. Emil Michael, the under secretary of
[13]
Pentagon labels Anthropic a supply-chain risk
The US Department of War has issued the first such designation ever applied to an American company, demanding that defence contractors certify they do not use Claude. Anthropic says the action is unlawful and retaliatory. For months, the conversations between Anthropic and the US Department of War
[14]
Former Military Officials, Academics, and Tech Policy Leaders Denounce Pentagon's Tactics Against Anthropic
"The future of American innovation in AI, the rule of law, and the constitutional boundaries of executive power are all on the line, and they are yours to defend." Over two dozen former defense and intelligence officials, tech policy leaders, and academics have signed on to a letter addressed to
[15]
Pentagon's chief tech officer says he clashed with AI company Anthropic over autonomous warfare
A top Pentagon official said Anthropic's dispute with the government over the use of its artificial intelligence technology in fully autonomous weapons came after a debate over how AI could be used in President Donald Trump's future Golden Dome missile defense program, which aims to put U.S.
[16]
Anthropic CEO says 'no choice' but to challenge Trump admin's supply chain risk designation in court
Anthropic CEO Dario Amodei confirmed that the U.S. government declared his company a supply chain risk on Thursday and said it has "no choice" but to challenge the designation in court. The startup has been at odds with the Department of Defense in recent weeks over how its artificial intelligence
[17]
Pentagon labels AI company Anthropic a supply chain risk
Pages from the Anthropic website and the company's logo are displayed on a computer screen in New York on Thursday, Feb. 26, 2026. Patrick Sison/AP hide caption The Trump administration is following through with its threat to designate artificial intelligence company Anthropic as a supply chain
[18]
Pentagon Turns to Ex-Uber Executive in Anthropic Feud Over AI
Emil Michael made his name in Silicon Valley a decade ago as an aggressive dealmaker for a startup -- Uber Technologies Inc. -- as it wrangled with governments in pursuit of market domination. Now, Michael has switched sides in a battle involving a different startup -- this time taking a leading
[19]
Anthropic fights designation from Department of War as AI dispute escalates
The Department of Defense, known under the Trump administration as the Department of War, has just officially designated AI company Anthropic a "supply-chain risk" to national security. But Anthropic isn't buying it. "We do not believe this action is legally sound, and we see no choice but to
[20]
More than a million users a day are signing up for Claude -- as Anthropic hits out at its 'legally unsound' US government ban
* The US government has labeled Anthropic a supply chain risk * Anthropic says it will challenge the decision in the courts * Claude users shouldn't be affected -- and usage numbers are up The US government has now officially designated Anthropic as a supply chain risk over the AI company's
[21]
Scoop: Anthropic CEO apologizes for leaked memo criticizing Trump
Why it matters: The dispute has raised fundamental questions over AI governance and cast a shadow over the industry's relationship with Washington. * Amodei won a legion of fans -- and Anthropic's Claude a flood of new users -- for his initial strong stance in a dispute over how AI could be used
[22]
The Most Disruptive Company in the World
Meanwhile, OpenAI's own military contract spurred a grassroots boycott. For some at OpenAI, trust had been breached. A top OpenAI researcher announced he was jumping to Anthropic. OpenAI's robotics team lead resigned, citing the new government contract. Altman, OpenAI's CEO, wrote he had been wrong
[23]
Pentagon officially defines Anthropic as 'supply chain risk' | Fortune
The Trump administration is following through with its threat to designate artificial intelligence company Anthropic as a supply chain risk in an unprecedented move that could force other government contractors to stop using the AI chatbot Claude. The Pentagon said in a statement Thursday that it
[24]
Pentagon says it is labeling AI company Anthropic a supply chain risk 'effective immediately'
The Trump administration is following through with its threat to designate artificial intelligence company Anthropic as a supply chain risk in an unprecedented move that could force other government contractors to stop using the AI chatbot Claude. The Pentagon said in a statement Thursday that it
[25]
Anthropic officially told by DOD that it's a supply chain risk even as Claude used in Iran
New York Times columnist Andrew Ross Sorkin and CEO and co-founder of Anthropic Dario Amodei speak onstage during the 2025 New York Times Dealbook Summit at Jazz at Lincoln Center on December 03, 2025 in New York City. The Department of Defense has officially informed Anthropic's leadership that
[26]
Anthropic vows court fight in Pentagon row
Washington (United States) (AFP) - Anthropic chief executive Dario Amodei has said the company has "no choice" but to challenge in court the Pentagon's formal designation of the artificial intelligence firm as a risk to US national security. The CEO, writing in a blog post on Thursday, insisted
[27]
US designates Anthropic a supply chain risk after AI military dispute
The Trump administration's unprecedented move against Anthropic over AI safeguards is forcing government contractors to reconsider their use of the company's chatbot Claude. The US administration is following through with its threat to designate artificial intelligence (AI) company Anthropic as a
[28]
Anthropic says that the Pentagon has declared it a national security risk
Anthropic said Thursday that it has been designated a threat to national security by the Defense Department, a striking move that bans the company from doing business with the U.S. military and could send shockwaves through America's AI industry. The designation, which the company said it received
[29]
Pentagon formally designates Anthropic a supply chain risk amid feud over AI guardrails
Eleanor Watson is a CBS News multi-platform reporter and producer covering the Pentagon. The U.S. military has formally designated artificial intelligence firm Anthropic a supply chain risk, a senior Pentagon official and a source directly familiar with the situation told CBS News, a sweeping move
[30]
Anthropic "supply chain risk" designation could favor China
Why it matters: By penalizing a domestic leader for its safety standards, the U.S. is creating a market opening for cheaper, unregulated models from competing countries. State of play: Secretary of War Pete Hegseth said he was directing the DoW to label Anthropic a supply chain risk on X, a
[31]
Anthropic at Risk of Huawei-Like Ban After Pentagon Punishment
Anthropic's CEO vowed to fight the designation in court, saying the company does not believe the action is legally sound, and the company has drawn support from tech groups across Silicon Valley. Anthropic PBC runs the risk of losing a wide range of US government business after the Defense
[32]
With multi-billions of dollars of revenue at risk, Anthropic sends in the lawyers against Trump 2.0's ban. What next?
As Anthropic admits a Pentagon blacklist of the company and its tech could cause the business to lose out on "multiple billions of dollars" in revenue, the firm has made good on its threat to legal up against Trump 2.0. Anthropic has filed a lawsuit against the US Department of Defense and other
[33]
Anthropic says it's in 'productive' discussions with Pentagon about Claude but still plans to sue on ban - SiliconANGLE
Anthropic says it's in 'productive' discussions with Pentagon about Claude but still plans to sue on ban Anthropic PBC has shared an update about its artificial intelligence safety feud with the Pentagon. In a Thursday blog post, Chief Executive Dario Amodei stated that the company has been
[34]
Anthropic will fight US 'supply chain risk' designation in court
Anthropic confirms it has been designated a 'supply chain risk' by the US administration, and says it has no choice but to challenge in the courts. Despite ongoing talks between Anthropic and the US Department of Defense, Anthropic confirmed last night it had received a letter from defense
[35]
Defense experts defend Anthropic in letter to Congress, slam DoD for setting 'dangerous precedent'
Anthropic CEO Dario Amodei looks on after a meeting with French President Emmanuel Macron during the AI Impact Summit in New Delhi on February 19, 2026. A group of former defense and intelligence officials and policy experts sent a letter on Thursday to Congress calling for an investigation into
[36]
Pentagon's chief tech officer says he clashed with AI company Anthropic over autonomous warfare
A top Pentagon official said Anthropic's dispute with the government over the use of its artificial intelligence technology in fully autonomous weapons came after a debate over how AI could be used in President Donald Trump's future Golden Dome missile defense program, which aims to put U.S.
[37]
Anthropic Reopens Pentagon Talks as Trump Weighs Supply Chain Risk Label
Anthropic previously secured a $200 million Pentagon contract, and its AI has been used in classified operations, including support for US air strikes on Iran, the Financial Times reports. Anthropic CEO Dario Amodei has reportedly reopened negotiations with the US Department of Defense in a
[38]
How the Anthropic-Pentagon Dispute Over AI Safeguards Escalated
March 11 (Reuters) - A standoff erupted between the U.S. Department of Defense and Anthropic in January after the AI lab refused to loosen safety guardrails on its systems, prompting the Pentagon to label it a 'supply-chain risk,' and putting the company's government contracts in jeopardy. The
[39]
Military commanders given deadline to remove Anthropic products from systems
Senior Pentagon leadership and military commanders have been given a 180-day deadline to remove all of Anthropic's AI products from their systems, with the Defense Department alleging the company's technology poses an "unacceptable supply chain risk for use in all systems and networks." The order
[40]
Pentagon Says It's Told Anthropic the Firm Is Supply-Chain Risk
The Pentagon said it has formally notified Anthropic PBC that it's deemed the artificial intelligence company and its products a risk to the US supply chain, according to a senior defense official. "DOW officially informed Anthropic leadership the company and its products are deemed a supply chain
[41]
Tech industry group expresses 'concern' to Pete Hegseth over supply chain risk label
The letter, written by the Information Technology Industry Council (ITI), doesn't name Anthropic, though the artificial intelligence company was given that label on Friday after failing to come to terms with the Defense Department. "We are concerned by recent reports regarding the Department of
[42]
Anthropic has strong case against Pentagon blacklisting, legal experts say - The Economic Times
Anthropic's lawsuit challenging its Pentagon blacklisting is likely to test the reach of an obscure law aimed at guarding military systems against sabotage, and legal experts say the artificial intelligence lab appears to have a strong case that President Donald Trump's administration
[43]
Analysis-Anthropic Has Strong Case Against Pentagon Blacklisting, Legal Experts Say
NEW YORK, March 11 (Reuters) - Anthropic's lawsuit challenging its Pentagon blacklisting is likely to test the reach of an obscure law aimed at guarding military systems against sabotage, and legal experts say the artificial intelligence lab appears to have a strong case that President Donald
[44]
Anthropic: Pentagon put billions of dollars at stake with supply chain risk designation
Lawyers for Anthropic warned a judge Tuesday that the Pentagon's decision to label its products a supply chain risk could cost the artificial intelligence (AI) firm billions of dollars in revenue. Michael Mongan, an attorney for Anthropic, said during Tuesday's status conference that the company
[45]
Pentagon Tech Chief Emil Michael Slams Anthropic As AI Weapons And Drone Autonomy Fight Escalates: 'Need Someone Who's Not Going To Wig Out' - Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)
The Pentagon's top technology official has criticized Anthropic for imposing restrictions on how its chatbot Claude can be used in military systems. On Friday, during an appearance on the "All-In" podcast, Emil Michael, the Pentagon's chief technology officer, said, "I need a reliable, steady
[46]
Pentagon officially labels Anthropic a supply chain risk "effective immediately"
The Pentagon has designated US artificial intelligence company Anthropic as a supply chain risk "effective immediately," a decision that could force defense contractors to stop using its Claude chatbot. The decision follows a dispute between the Trump administration and Anthropic leadership over
[47]
Big tech group backs Anthropic in fight with Pentagon over AI safeguards
A big tech industry group consisting of major Anthropic backers Amazon and Nvidia on Wednesday expressed concern over the Pentagon's decision to declare the artificial intelligence company a supply-chain risk as other investors raced to contain fallout from the lab's fight with the U.S. Defense
[48]
Tech Groups Urge Trump to Drop Anthropic Supply-Chain Risk Label
Tech groups representing major companies including Alphabet Inc.'s Google and Apple Inc. are urging President Donald Trump to reconsider designating Anthropic PBC a national security risk, arguing the move would cause detrimental ripple effects for the rest of the industry. The tech industry's
[49]
Pentagon informed Anthropic it is a supply chain risk
The Pentagon slapped a formal supply-chain risk designation on artificial intelligence lab Anthropic on Thursday, limiting use of a technology that a source said was being used for military operations in Iran. The "supply-chain risk" label, confirmed by Anthropic in a statement, takes effect
[50]
Pentagon official says AI debate over Trump's Golden Dome missile defence program led to dispute with Anthropic
A top Pentagon official said Anthropic's dispute with the government over the use of its artificial intelligence technology in fully autonomous weapons came after a debate over how AI could be used in President Donald Trump's future Golden Dome missile defence program, which aims to put US weapons
[51]
Anthropic Sees Clients Step Back Following Government Ban | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The artificial intelligence (AI) startup made that argument in a court hearing
[52]
Pentagon Says It Is Labeling AI Company Anthropic a Supply Chain Risk 'Effective Immediately'
The Trump administration is following through with its threat to designate artificial intelligence company Anthropic as a supply chain risk in an unprecedented move that could force other government contractors to stop using the AI chatbot Claude. The Pentagon said in a statement Thursday that it
[53]
Anthropic CEO vows to fight risk designation, insists 'vast majority' of customers won't be affected
Anthropic CEO Dario Amodei said Thursday that the company would fight the Pentagon's supply chain risk designation in court, while suggesting the "vast majority" of its customers would be unaffected. The Pentagon confirmed the designation, which Defense Secretary Pete Hegseth announced last week,
[54]
Department Of War Says 'No Active Negotiation' With Anthropic: 'End All Speculation'
The US Department of War has refuted any ongoing negotiations with Anthropic AI despite the AI startup's plans to challenge the government's designation of it as a national security "supply chain risk." Under Secretary of War Emil Michael took to X to put an end to all speculation, stating that
[55]
Microsoft backs Anthropic despite US 'supply-chain risk' label - The Economic Times
Microsoft has come out in support of the artificial intelligence (AI) company Anthropic, which is under scrutiny by the US Department of War. The Dario Amodei-led company was labelled a "supply chain risk" by the military body earlier today. Microsoft said it will deploy Anthropic's AI models in
[56]
Anthropic CEO Dario Amodei Says 'No Choice' But To Challenge US Government In Court After Claude Provider Labeled 'Supply Chain Risk' - Lockheed Martin (NYSE:LMT), Microsoft (NASDAQ:MSFT)
Anthropic plans to challenge the U.S. government in court after the Pentagon designated the AI startup a national security "supply chain risk," according to CEO Dario Amodei. Pentagon Designates Anthropic A National Security Risk In a statement on Thursday, Amodei said the company received an
[57]
Pentagon labels Anthropic supply-chain risk days after CEO lashed out...
The Pentagon has reportedly told Anthropic it will be officially labeled a supply-chain risk - just days after the AI firm's CEO Dario Amodei circulated a letter to staffers bashing the Trump administration's efforts against the company. The Department of War on Thursday formally notified
[58]
Pentagon Clash With Anthropic Raises AI Control Questions and NVIDIA Risk
Pentagon-Anthropic Standoff Shows How AI Policy Can Disrupt Chip Supply Chains The Pentagon's dispute with Anthropic has become a major test of how the United States may govern powerful artificial intelligence systems. The conflict moved beyond contract terms and raised broader questions about AI
[59]
Anthropic to challenge Pentagon's 'supply chain risk' label
CEO Dario Amodei said that Anthropic has received a letter from the US Department of War stating the AI company is considered a supply chain risk to America's national security. Amodei said the firm believes the action is not legally sound and plans to challenge it in court. Dario Amodei led
[60]
Anthropic Is A Supply-Chain Threat, Pentagon Says As Trump Rift Deepens
Anthropic AI Under Fire: Pentagon Labels It Supply-Chain Threat, Trump Rift Deepens Anthropic PBC has been formally notified by the Pentagon that its AI products pose a risk to the U.S. supply chain, according to a senior defense official who spoke to Bloomberg. The official confirmed that the
[61]
How the Anthropic-Pentagon dispute over AI safeguards escalated
March 11 (Reuters) - A standoff erupted between the U.S. Department of Defense and Anthropic in January after the AI lab refused to loosen safety guardrails on its systems, prompting the Pentagon to label it a 'supply-chain risk,' and putting the company's government contracts in jeopardy. The
[62]
Pentagon says it is labeling AI company Anthropic a supply chain risk 'effective immediately' - The Economic Times
The Pentagon has labelled Anthropic a supply-chain risk after its CEO Dario Amodei refused military use that could enable surveillance or autonomous weapons. Some contractors may stop using Claude. Critics call the action an overreach, while downloads surge and rivalry with OpenAI intensifies.The
[63]
Anthropic has strong case against Pentagon blacklisting, legal experts say
NEW YORK, March 11 (Reuters) - Anthropic's lawsuit challenging its Pentagon blacklisting is likely to test the reach of an obscure law aimed at guarding military systems against sabotage, and legal experts say the artificial intelligence lab appears to have a strong case that President Donald
[64]
Big Tech group tells Pentagon's Hegseth they are 'concerned' about Anthropic supply-chain risk designation
March 4 (Reuters) - A Big Tech industry group on Wednesday expressed concern to U.S. Secretary of Defense Pete Hegseth about his declaring AI company Anthropic a supply-chain risk, saying such a designation creates uncertainty for companies that could threaten the military's access to the best
[65]
Anthropic CEO says company having productive conversations with Pentagon despite ban
Anthropic CEO also made it clear that the company may take legal action if needed. The ongoing tension between AI startup Anthropic and the United States Department of Defense has taken a new turn. Even after the Pentagon officially labelled the company as a supply chain risk, Anthropic CEO Dario
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The Pentagon officially designated Anthropic a supply chain risk after the AI company refused to allow its Claude system for autonomous weapons and mass surveillance. CEO Dario Amodei announced plans to challenge the unprecedented designation in court, warning the company could lose billions in revenue while arguing the label is legally unsound and overly punitive.
Anthropic Faces Unprecedented Supply Chain Risk Designation
The Pentagon has officially labeled AI company Anthropic a supply chain risk, marking the first time an American technology firm has publicly received a designation typically reserved for foreign adversaries
2
. The decision follows weeks of failed negotiations between Anthropic and the US Defense Department over how much control the military should have over AI systems. CEO Dario Amodei drew firm red lines, refusing to allow Claude to be used for mass surveillance of Americans or fully autonomous weapons without human oversight1
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Source: Market Screener
The supply chain risk designation bars defense contractors from working with the Pentagon if they use Claude in their products
3
. This creates immediate operational challenges, as Anthropic has been the only frontier AI lab with classified-ready systems currently supporting U.S. military operations in Iran, where Claude serves as one of the main tools installed in Palantir's Maven Smart System2
.Anthropic Prepares Court Challenge Over AI Safety Issues
Dario Amodei announced that Anthropic sees "no choice but to challenge it in court," calling the Pentagon's actions "legally unsound" and "retaliatory and punitive"
1
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. In a hearing before US District Judge Rita F. Lin in San Francisco, Anthropic told the court it could lose billions of dollars in revenue this year and urged quick action on its request to block the Trump administration's declaration5
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Source: Digit
Amodei argued that the Department's letter is narrow in scope and exists to protect the government rather than punish a supplier. He emphasized that the law requires the Secretary of Defense to use the least restrictive means necessary, and that even for defense contractors, the designation doesn't limit uses of Claude unrelated to specific Pentagon contracts
1
. However, legal experts note that courts are reluctant to second-guess the government on national security matters, creating a high bar for Anthropic's court challenge1
.OpenAI Steps In as Industry Tensions Rise
As Anthropic faces restrictions, OpenAI forged its own deal with the Pentagon to allow the military to use its AI systems for "all lawful purposes"
2
. The timing and ambiguous phrasing have sparked concern among OpenAI's own employees about potential uses for autonomous weapons deployment without adequate safeguards. OpenAI President Greg Brockman has been a staunch backer of President Trump, recently donating $25 million to the MAGA Inc. Super PAC2
.Amodei apologized for a leaked internal memo in which he characterized OpenAI's dealings as "safety theater" and noted "we haven't given dictator-style praise to Trump (while Sam has)"
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. He claimed the memo, written within hours of the designation announcement, didn't reflect his "careful or considered views" and represented an "out-of-date assessment"1
.Related Stories
Broader Industry Implications and Customer Impact
Hundreds of employees from OpenAI and Google have urged the Pentagon to withdraw its designation and called on Congress to push back on what they view as inappropriate use of authority against an American technology company
2
. Dean Ball, a former Trump White House AI advisor, called the designation a "death rattle" of the American republic, arguing the government has abandoned strategic clarity in favor of "thuggish" tribalism that treats domestic innovators worse than foreign adversaries2
.Despite the controversy, Claude AI user numbers continue to grow, with the app sitting at the top of free charts on the Google Play Store and Apple App Store in the US. Anthropic's chief product officer reported more than a million new customers a day
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. Amodei emphasized that the vast majority of Anthropic's customers remain unaffected, as the designation applies only to Claude's use as a direct part of contracts with the Department of Defense1
. The company has committed to continue providing its models to the Pentagon at "nominal cost" for ongoing operations while the transition occurs1
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Source: GameReactor
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