Anthropic Hits Back After US Military Labels It a 'Supply Chain Risk'

"Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. The designation comes after weeks of tense negotiations between the Pentagon and Anthropic over how the US military could use the startup's AI models."

"In a blog post this week, Anthropic argued its contracts with the Pentagon should not allow for its technology to be used for mass domestic surveillance of Americans or fully autonomous weapons. The Pentagon asked that Anthropic agree to let the US military apply its AI to all lawful uses with no specific exceptions."

"Anthropic responded in another blog post on Friday evening, saying it would challenge any supply chain risk designation in court, and that such a designation would set a dangerous precedent for any American company that negotiates with the government."

Secretary of Defense Pete Hegseth designated Anthropic as a supply-chain risk, immediately barring Pentagon contractors and suppliers from conducting business with the AI company. The conflict arose from negotiations over military use of Anthropic's AI models. Anthropic refused to allow its technology for mass domestic surveillance or fully autonomous weapons, while the Pentagon demanded unrestricted application to all lawful uses. Anthropic challenged the designation in court, arguing it lacks statutory authority and sets a dangerous precedent for American companies negotiating with government. The company stated it received no direct communication from the Department of Defense or White House regarding the dispute.

Read at WIRED