Anthropic confirmed it has been designated a ‘supply chain risk’ by the US administration, and said 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 secretary Pete Hegseth confirming the ‘supply chain risk’ designation that had been threatened.
“Yesterday (March 4) Anthropic received a letter from the Department of [Defense] confirming that we have been designated as a supply chain risk to America’s national security,” wrote co-founder and CEO Dario Amodei last night in an official statement. “We do not believe this action is legally sound, and we see no choice but to challenge it in court.”
Amodei was quick to point out that “even supposing it was legally sound”, the limited application of the designation means the “vast majority” of its customers will be unaffected by the move. He said the restriction clearly only applied to the use of Claude by customers as a direct part of contracts with the US defense department, “not all use of Claude by customers who have such contracts”.
“The Department’s letter has a narrow scope, and this is because the relevant statute is narrow, too,” wrote Amodei. “It exists to protect the government rather than to punish a supplier.”
As with previous statements, Amodei strikes a conciliatory tone, saying Anthropic is committed to US national security and will offer continuing support from its engineers to ensure a smooth transition from Claude “for as long as we are permitted to do so”.
Anthropic drew the ire of the US administration after a standoff with the Pentagon, where Anthropic refused to change its safeguards related to using its AI for fully autonomous weapons, or for mass surveillance of US citizens.
With many in Silicon Valley supporting its relatively principled stand, and general users sending it to the top of the US Apple charts in recent days for free downloads – beating OpenAI’s ChatGPT for the first time – its flagship Claude.ai and Claude Code apps went down for around three hours on 2 March due to “unprecedented demand”.
Claude Cowork in particular was already becoming the darling of AI enthusiasts in the professional world, and Bloomberg reported on Tuesday that Anthropic was on track to generate annual revenue of almost $20bn, more than double its run rate from late 2025, signalling the rapid growth at the AI company which is today valued at around $380bn.
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