The Pentagon formally labels Anthropic a supply-chain risk

After weeks of failed negotiations, public ultimatums, and lawsuit threats,

the Defense Department has formally labeled Anthropic a “supply-chain risk”, escalating its fight with the AI company over their acceptable use policies and potentially bringing their fight to court.

The decision, first reported by The Wall Street Journal on Thursday, citing one source familiar, will bar defense contractors from working with the government if they use Claude, Anthropic’s AI program, in their products. Though the designation is typically applied to foreign companies with ties to adversarial governments, this is the first time that an America …

Read the full story at The Verge.