Anthropic dispute pushes Pentagon toward new AI providers

The Pentagon is accelerating efforts to replace Anthropic after the company was designated a supply-chain risk, marking a sharp shift in US defence AI strategy. The move follows a breakdown in talks over safeguards governing military use of AI, particularly around surveillance and autonomous weapons.

Cameron Stanley, the Pentagon’s chief digital and AI officer, said engineering work is underway to deploy alternative large language models in government-controlled environments. He indicated that while transitioning from Anthropic’s tools could take more than a month, new systems are expected to be operational soon.

The decision threatens a $200 million contract and could exclude Anthropic from future defence partnerships. The US administration has set a six-month timeline for federal agencies to shift away from the company, signalling a broader push to diversify AI suppliers and reduce dependency risks.

Rival providers are already stepping in. OpenAI and xAI have been approved for classified work, while Google is introducing Gemini AI tools across the Pentagon workforce, initially on unclassified networks before expanding into sensitive environments.

Anthropic has challenged the designation in court, arguing it violates constitutional protections and could harm its business. Despite the legal dispute, defence officials have made clear they are moving forward with an ‘AI-first’ strategy to accelerate the adoption of advanced models across military operations.

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