The Pentagon is threatening to blacklist top American AI lab, Anthropic, without imposing similar restrictions on Chinese rivals. The move could create a market for cheaper, unregulated models from competing countries. The Department of War (DoW) has designated Anthropic as a supply chain risk, a designation typically reserved for foreign adversaries. This effectively prevents any company doing business with the Department of Wars from using Anthropic's technology, potentially wiping out major enterprise customers. The other side, DeepSeek, which has ties to China but is not designated a supply-chain risk, is also expected to release its latest model soon. Critics argue that the U.S. government's treatment of Anthropic could result in a "chilling effect to innovation," leaving an opening for Chinese labs with different ethical standards.