The US Pentagon has officially designated artificial intelligence firm Anthropic as a supply chain risk. This marks the first time a US company has received such a designation, meaning the government deems Anthropic's technology not secure enough for its use.

Anthropic, which has restricted defense agencies' access to its AI tools due to concerns over mass surveillance and autonomous weapons, plans to challenge the decision in court. CEO Dario Amodei stated the action is "not legally sound" and they "see no choice but to challenge it in court."

The designation follows public statements from former President Donald Trump directing federal agencies to cease using Anthropic, and subsequent posts by a senior Pentagon official. Anthropic reported receiving no direct communication from the White House or Pentagon prior to these public statements.

Tech giant Microsoft confirmed it will continue to embed Anthropic technology for its clients, excluding the US Department of Defense, stating its legal review found Anthropic products can remain available to other customers for non-defense related projects.

Senator Kirsten Gillibrand criticized the designation as "shortsighted, self-destructive, and a gift to our adversaries," emphasizing that the government should not openly attack an American company for upholding its safety measures.

Despite the fallout, Anthropic's AI app, Claude, remains popular, with over a million new sign-ups daily globally. The company had been a user of US government and military systems since 2024, being the first advanced AI firm with tools deployed in agencies handling classified work.