The US government has cut off the government's use of Anthropic, labeling the company a supply chain risk and labeling it a "supply chain risk" following a dispute over AI safeguards. The decision comes after weeks of tense negotiations with the Pentagon over the terms of use for Anthropic's AI models. The company had pushed for restrictions on mass domestic surveillance and fully autonomous lethal weapons, but the Defense Department insisted on using an "all lawful purposes" standard. President Trump ordered federal agencies to stop using Anthropic’s technology and Defense Secretary Pete Hegseth announced that DOD was labeling Anthropic as a supplier chain risk. This move could potentially threaten the company's work at the Pentagon and its broader business. Thomas Wright, a senior fellow with the Strobe Talbott Center for Security, Strategy and Technology at the Brookings Institution, predicted that Silicon Valley will be nervous about working with the U.S. government.