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Hegseth Labels Anthropic a Supply Chain 'Risk,' After Trump Orders Gov to Ditch AI Firm

Pentagon bars Anthropic and partners from defense contracts after refusal to remove AI guardrails, citing national security risks and a six-month phase-out window.

  • On Saturday, Secretary of Defense Pete Hegseth designated Anthropic a `Supply-Chain Risk to National Security`, barring Pentagon contractors from working with the firm.
  • The Department of Defense negotiators demanded Anthropic remove guardrails and gave an ultimatum to agree by Friday, 5:30 PM EST, to let Claude be used for all legal purposes, including lethal autonomous weapons and mass surveillance.
  • Anthropic highlighted its classified‑network deployments since June 2024 and offered to assist a smooth transition if offboarded after winning one of four contracts worth up to $200 million.
  • President Donald Trump set a six-month phase-out for federal agencies, potentially disrupting contractors like Palantir and AWS, while Anthropic warned it will challenge the supply-chain designation in court.
  • The move could set an unprecedented legal precedent for U.S. firms, as designation precedent targets foreign-tied companies and Anthropic says it will challenge this legally unsound step; Elon Musk, Alex Karp, and OpenAI publicly weighed in amid Pentagon talks that reportedly included Defense Production Act threats.
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Technology company Anthropic announced Saturday night that it will sue the Defense Department over its decision to designate it a supply chain security risk after it failed to comply with its requirements regarding its use of artificial intelligence (AI). President Donald Trump said shortly before that he had ordered federal agencies to phase out its use of AI technologies, news agencies reported.

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Breaking Defense broke the news in on Friday, February 27, 2026.
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