Anthropic says it could face $5 billion loss in dispute with Pentagon

Anthropic warned in a court filing that it could lose up to $5 billion in sales as a result of its escalating dispute with the Pentagon. More than 30 researchers from OpenAI and Google, including Jeff Dean of Google DeepMind, filed a joint amicus brief in support of Anthropic, signing in a personal capacity and arguing the Pentagon's "supply-chain risk" label could harm the broader US AI industry.

The conflict began after negotiations broke down over guardrails for how Anthropic's models might be used, with particular concern about mass domestic surveillance and autonomous lethal weapons. Defense Secretary Pete Hegseth then said that "no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic," a move that expanded the supply-chain designation.

Anthropic has sued the government in two courts, saying the decision violates its First Amendment rights and amounts to unfair retaliation.

United States

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