The OpenAI rival has options in its showdown with the Pentagon.

The company's Claude chatbot is one of the few AI systems cleared for use in classified settings. But a standoff between Anthropic and the Trump administration is putting its government work at risk.

The Pentagon may decide to officially designate Anthropic as a "supply chain risk" to push them out of government, sources say.

Until this week, Anthropic was the only AI company cleared to deploy its models on classified networks. Elon Musk's xAI is now the second.

Defense Secretary Pete Hegseth said the Pentagon is designating Anthropic as a supply chain risk shortly after President Trump directed all federal agencies to cease using the company’s technology

Defense Secretary Pete Hegseth deemed artificial intelligence firm Anthropic a supply chain risk on Friday, following days of increasingly heated public conflict with the AI company.

Secretary of Defense Pete Hegseth said the company that owns the AI assistant Claude would be punished unless it drops all ethical guidelines.

Defense Secretary Pete Hegseth is pressuring Anthropic to give the military broader access to its artificial intelligence technology or lose its Pentagon contract.

Tech lawyers and AI policymakers warn that the Pentagon’s plans to compel Anthropic to abandon its ethical red lines are contradictory and could chill partnerships between the government and Silicon Valley.