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The Pentagon has designated Anthropic as a national security risk, prohibiting defense contracts due to concerns over its AI model, Claude. This follows a $200 million contract awarded in 2024, where the military sought unrestricted access to Claude.

Anthropic refused to comply with demands for mass surveillance and autonomous weapons, which led to a standoff. Dario Amodei, CEO of Anthropic, announced plans to contest the designation in court, arguing it is legally unsound.

Meanwhile, OpenAI has obtained a contract to deploy its models on military networks, effectively replacing Anthropic’s role. The implications of this designation could have long-lasting effects on Anthropic and the broader AI industry.