Tech Workers Oppose 'Risk' Label for Anthropic
A group of tech workers is urging the Pentagon and Congress to withdraw a "supply-chain risk" designation for AI firm Anthropic, a key OpenAI competitor. They argue such labels stifle competition and innovation in the AI sector and are calling for more transparent criteria for government contracts.
The dispute escalated after Anthropic refused to remove two ethical "red lines" from a contract with the Pentagon. The company insisted on prohibitions against using its AI for mass domestic surveillance of Americans and for autonomous weapons that can make targeting decisions without a human in the loop. The Department of Defense reportedly sought unrestricted use for "all lawful purposes." Following the impasse, on February 27, 2026, President Donald Trump ordered all federal agencies to stop using Anthropic's technology, and Defense Secretary Pete Hegseth announced the "supply chain risk" designation. This label, typically applied to foreign adversaries, could prevent any contractor, supplier, or partner doing business with the U.S. military from conducting any commercial activity with Anthropic. The open letter protesting the decision has signatories from employees at prominent tech firms including OpenAI, Slack, IBM, and Salesforce Ventures. They argue the move is retaliatory and sets a dangerous precedent, effectively punishing a U.S. company for upholding its contractual terms and ethical principles. Anthropic was founded in 2021 by seven former OpenAI employees, including CEO Dario Amodei and President Daniela Amodei. The company is structured as a public benefit corporation with a focus on AI safety and has attracted billions in funding from major tech players like Amazon and Google, both of whom are also major Pentagon contractors. The company has stated the "supply chain risk" designation is "legally unsound" and has pledged to challenge it in court if it is finalized. The process for such a designation requires a formal risk assessment and notification to Congress before it becomes binding on military contractors. This conflict highlights a growing tension between Silicon Valley's AI developers, who are increasingly embedding ethical guardrails into their products, and government agencies seeking to utilize the powerful technology for national security purposes. While Anthropic has been blacklisted, its rival OpenAI announced it had reached a new deal with the Department of Defense, agreeing to similar guardrails against mass surveillance and autonomous weapons.
