Defense Secretary Pete Hegseth reportedly furious as AI giant faces potential military blacklist.
The Pentagon is reportedly close to cutting business ties with Anthropic and designating the AI firm as a “supply chain risk,” according to Axios.
If imposed, the designation would significantly escalate tensions between the US Department of Defense and one of America’s leading artificial intelligence companies.
The report states that Defense Secretary Pete Hegseth is “very angry” with Anthropic, though specific details behind the dispute have not been publicly disclosed.
The “supply chain risk” label is typically reserved for foreign adversaries and companies deemed national security threats.
If applied:
- Any company seeking contracts with the Pentagon would be required to sever ties with Anthropic.
- Contractors would need to certify they do not use Anthropic’s AI model, Claude, in internal workflows.
- Defense-related technology ecosystems could face widespread restructuring.
The potential impact is substantial. Anthropic recently claimed that eight of the ten largest US companies use Claude, suggesting the designation could ripple through corporate America.
Strategic and Economic Implications
Such a move would send shockwaves through the US defense and technology sectors. AI tools are increasingly embedded in logistics, cybersecurity, analytics, and operational planning systems tied to federal contractors.
A formal designation could:
- Disrupt existing vendor networks
- Force rapid AI tool replacements
- Trigger compliance audits across major corporations
- Reshape AI procurement standards within defense supply chains
Observers note that applying a penalty commonly used against foreign adversaries to a US-based AI firm would represent a rare and dramatic escalation.
Uncertain Path Forward
At present, the Pentagon has not publicly confirmed final action. However, reports suggest deliberations are advanced.
If implemented, the decision could redefine how AI companies engage with national security institutions — and signal stricter oversight of artificial intelligence providers embedded in critical infrastructure.
