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Pentagon ‘Close’ to Punishing Anthropic AI as ‘Supply Chain Risk’ over Claude’s Military Use Terms: Report

The Pentagon plans to label Anthropic a supply chain risk after months of disputes over usage limits that restrict military operations, despite Claude’s deployment in classified missions.

  • Defense Secretary Pete Hegseth is close to cutting business ties with Anthropic after contentious negotiations, a senior official said.
  • After months of contentious negotiations, Anthropic sought safeguards to block mass surveillance of Americans and prevent fully autonomous weapons, while the Pentagon insisted on using Claude for all lawful purposes.
  • Claude is already embedded in classified military systems and was used during an early January raid, while the $200 million contract is a small part of Anthropic's $14 billion annual revenue.
  • A senior Pentagon official warned, `It will be an enormous pain in the ass to disentangle, and we are going to make sure they pay a price for forcing our hand like this`, if Anthropic is designated a supply chain risk, forcing companies to certify they don't use Claude.
  • Pentagon's hardball with Anthropic sets the tone for talks with OpenAI, Google and xAI, as a senior official said the other three likely accept the 'all lawful use' standard.
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Bias Distribution

  • 38% of the sources lean Left, 37% of the sources lean Right
38% Left

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The New Republic broke the news in on Monday, February 16, 2026.
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