Anthropic Moves to Fight US Supply Chain Risk Label

CEO Dario Amodei said the supply chain risk designation applies only to Claude’s use in Department of War contracts, not all customer usage.

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  • [Image source: Diksha Mishra/MITSMR India]

    Anthropic plans to challenge the US government’s decision to designate the artificial intelligence company a supply chain risk after a dispute with the Department of War over limits on how its AI models can be used.

    Chief executive Dario Amodei confirmed in a post on the company’s blog that Anthropic received an official letter from the Department of War confirming the designation.

    “Yesterday (March 4) Anthropic received a letter from the Department of War confirming that we have been designated as a supply chain risk to America’s national security,” Amodei wrote.

    He said the company believes the decision lacks legal basis and intends to contest it.

    “As we wrote on Friday, we do not believe this action is legally sound, and we see no choice but to challenge it in court,” he said.

    The conflict stems from negotiations between Anthropic and the Pentagon over the use of its AI system Claude within defense programs. 

    Under the designation, defense contractors must ensure that Anthropic technology is not used in projects tied to the Pentagon. The classification has historically been used against companies operating in countries viewed as adversaries of the United States.

    Amodei said the order applies only to a narrow set of circumstances involving Pentagon contracts.

    “With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts,” he wrote.

    He added that the law behind the designation requires the government to take the least restrictive measures necessary to secure its supply chain.

    Anthropic had previously secured a $200 million contract with the Pentagon and integrated its AI models into classified government networks. 

    Amodei said discussions with the Pentagon had continued in recent days and had focused on possible ways to maintain cooperation while respecting the company’s restrictions.

    “I would like to reiterate that we had been having productive conversations with the Department of War over the last several days,” he wrote, noting the company had supported projects involving intelligence analysis, operational planning and cyber operations.

    He also addressed a leaked internal message that drew attention to the company’s tensions with the administration.

    “Anthropic did not leak this post nor direct anyone else to do so it is not in our interest to escalate this situation,” Amodei wrote. He said the message was written during what he described as a difficult period for the company and does not represent his considered views.

    Despite the dispute, Amodei said Anthropic intends to continue assisting the government during a transition period.

    “Our most important priority right now is making sure that our warfighters and national security experts are not deprived of important tools in the middle of major combat operations,” he said.

    He added that Anthropic will keep its models available to national security teams while the government shifts to alternative providers.

    “Anthropic will provide our models to the Department of War and national security community, at nominal cost and with continuing support from our engineers, for as long as is necessary to make that transition.”

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