Anthropic has raised over $60 billion from over 200 "venture capital" investors, half of which came just last month. The company and the Defense Department have been unable to agree on a long-term deal for the military to continue licensing Anthropic's AI models. This disagreement stems from disagreements over fully autonomous weapons and mass surveillance. President Trump directed every federal agency to cease using Anthropic technology, and Defense Secretary Pete Hegseth followed up by defining Anthropic as a supply chain risk to national security. The designation has been challenged by Anthropic, which has pledged to challenge in court. The fallout could be an existential moment for all of American AI and its investors.