Tech Workers Defend Anthropic Against 'Risk' Label
A group of tech workers is urging the Department of Defense and Congress to revoke AI startup Anthropic's designation as a "supply-chain risk." The label has effectively barred the company from federal contracts, sparking a debate over whether the move stifles competition and innovation in the U.S. AI sector.
The "supply-chain risk" designation applied to Anthropic is an unprecedented move, as this authority is typically reserved for foreign adversaries like China's Huawei. Legal experts question the basis for applying this to a U.S. company over a contract dispute, with some suggesting the administration may be misapplying a 2011 law, 10 U.S.C. § 3252, which was designed to prevent infiltration of the defense industrial base by foreign powers. The conflict ignited when Anthropic refused to remove contractual safeguards that would prevent its AI models from being used for mass domestic surveillance and in fully autonomous weapons systems without human oversight. In a statement, Anthropic CEO Dario Amodei asserted, "No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons." In response to the standoff, President Donald Trump posted on Truth Social, calling Anthropic "Leftwing nut jobs" and directing all federal agencies to "IMMEDIATELY CEASE all use of Anthropic's technology." Defense Secretary Pete Hegseth echoed this, stating on X that no military contractor may conduct any commercial activity with Anthropic, a move that one former Trump administration AI advisor called "attempted corporate murder." Hundreds of tech workers from companies including Google, OpenAI, Slack, and IBM have signed an open letter to the Department of Defense and Congress. The letter argues the designation is retaliation for a contract dispute and sets a dangerous precedent, urging lawmakers to examine the use of such "extraordinary authorities against an American technology company." The ban immediately terminated Anthropic's over $200 million in federal contracts. The broader implications are significant for investors like Amazon and Google, who have collectively invested billions in the AI firm and are also major Pentagon contractors. The designation could potentially force them to divest from Anthropic to maintain their government contracts. In a surprising turn, rival company OpenAI announced it had secured its own agreement with the Pentagon. OpenAI CEO Sam Altman stated their deal includes the same prohibitions on mass surveillance and autonomous weapons that Anthropic had requested. Publicly, OpenAI has stated it does not believe Anthropic should be designated a "supply chain risk." Anthropic has declared the designation "legally unsound" and has vowed to challenge the decision in court. Meanwhile, several federal agencies, including the departments of State and Treasury, have begun to phase out their use of Anthropic's AI products in compliance with the presidential directive.
