TLDR
The Pentagon said this week it has ceased the use of Anthropic products, after Defense Secretary Pete Hegseth ordered a six-month phase-out in February with a late-August deadline. Sources told the BBC Claude was still in use as recently as last week. Claude AI had been embedded in Palantir's Maven Smart System for target prioritisation, including during strikes on Iran, and the exit lands weeks before Anthropic's planned IPO.
Phase-out complete, confirmation on record
A Pentagon official said in a statement on Monday that the department has ceased the use of Anthropic products, closing out a six-month clock that started in February. Multiple people familiar with the matter told the BBC that Claude was still being used by the department as recently as last week, including in operations against Iran.[1] Anthropic declined to comment. The exit is the most consequential thing to happen to the company's balance sheet this year, and it happened quietly.
Defense Secretary Pete Hegseth signed the triggering designation on 27 February 2026, labelling Anthropic a "Supply-Chain Risk to National Security".[2] Hegseth directed that "effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic," while giving the department six months to complete its transition.[2] His stated replacement standard: "a better and more patriotic service."
In conjunction with the President's directive for the Federal Government to cease all use of Anthropic's technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.
2026-02-27 · View on XHow the designation was applied
On 6 March 2026, Department of War Chief Information Officer Kirsten Davies issued a memorandum directing all components to discontinue Anthropic products across every system within 180 days.[3] Davies wrote that "the use of Anthropic, PBC, and its subordinate, subsidiaries, or affiliated offices or entities presents an unacceptable supply chain risk for use in all DoW systems and networks."[3] The 180-day window expired in late August. The official's statement does not say when use actually stopped, and the BBC's sources put Claude in use well past that deadline.
Legal authority came under 10 U.S.C. § 3252 and related Pentagon directives, which allow the department to bar companies whose products pose unacceptable risks. Anthropic is the first American firm to receive that designation under those provisions.[4]
Claude inside Maven, and what Anthropic refused
Claude had been integrated into Palantir's Maven Smart System, where it provided AI-driven intelligence analysis and target prioritisation across operations including strikes on Iran.[4] Maven is the Pentagon's flagship battlefield AI programme, and Claude's role inside it placed Anthropic directly in military targeting decisions.
Anthropic drew a line at unrestricted military use. CEO Dario Amodei said the company could not in good conscience agree to Pentagon demands for that kind of access to its models.[5] That refusal, made public before the dispute escalated, gave Hegseth his said rationale for the designation.
What the ban costs Anthropic before its IPO
Anthropic, founded in 2021, is planning an initial public offering in late 2026.[4] The supply-chain risk designation strips the company's defence-related revenue and lands on the IPO prospectus at the worst possible moment. Anthropic goes to market in weeks with a growth story that now carries a formal, public rejection from the world's largest defence customer.
The Pentagon has yet to publicly identify and name a replacement for Claude inside Maven. That procurement decision will determine which AI firm picks up the contract Anthropic leaves behind.
KEY TAKEAWAYS
SOURCES & CITATIONS
FREQUENTLY ASKED QUESTIONS
Why did the Pentagon designate Anthropic a supply-chain risk?
What was Claude AI being used for inside the US military?
What does the ban mean for Anthropic's planned IPO?
Jonas Valenti writes about search and how businesses get discovered. He has spent years watching what makes a company visible online, and is unsentimental about tactics that no longer work.
