Key Takeaways
- Pentagon CTO stated Claude AI contains policy preferences embedded in its constitution that may undermine military readiness.
- Defense Department designated Anthropic as the first American company classified as a supply chain risk.
- All defense contractors working with the Pentagon must verify they avoid using Claude in their operations.
- Anthropic filed a lawsuit against the Trump administration on Monday, describing the designation as “unprecedented and unlawful” while highlighting hundreds of millions in threatened contracts.
- Palantir CEO Alex Karp revealed his company continues utilizing Claude for U.S. military operations despite the ban.
Earlier this month, the Pentagon identified Anthropic as a supply chain risk, marking a historic first for an American company. Previously, this classification was reserved exclusively for foreign adversaries.
During a Thursday interview on CNBC’s “Squawk Box,” Defense Department CTO Emil Michael outlined the rationale behind this determination. According to Michael, Claude’s foundational “constitution” — a framework Anthropic employs to guide model behavior — introduces policy biases that may influence AI performance in defense applications.
“We can’t have a company that has a different policy preference that is baked into the model through its constitution, its soul, its policy preferences, pollute the supply chain so our war fighters are getting ineffective weapons, ineffective body armor, ineffective protection,” Michael said.
Anthropic released Claude’s latest constitutional framework in January 2026. The company describes this document as having a “crucial role” in model training that “directly shapes Claude’s behavior.”
Under the supply chain designation, defense contractors and suppliers must formally certify they have eliminated Claude from any Pentagon-related projects.
Michael said the decision was “not meant to be punitive.” He also noted that the U.S. government accounts for only a “tiny fraction” of Anthropic’s overall revenue.
Former OpenAI researchers established Anthropic in 2021. The company has developed substantial enterprise relationships, securing early Defense Department contracts.
Anthropic mounted a vigorous defense against the Pentagon’s action. The company initiated legal proceedings against the Trump administration on Monday, characterizing the supply chain classification as “unprecedented and unlawful.”
According to the lawsuit, Anthropic faces “irreparable” damage with hundreds of millions of dollars in contracts hanging in the balance.
Defense Department Refutes Claims of Company Outreach
Michael rejected assertions from Anthropic that government officials were directly contacting businesses to discourage Claude usage. He characterized these allegations as “rumors.”
“The Department of War is not reaching out to companies to tell them what to do, so long as it’s not in our supply chain,” Michael said.
Michael recognized that transitioning away from Claude requires substantial time. The DOD maintains an established transition strategy, he explained, emphasizing that extracting deeply embedded AI systems presents far greater complexity than removing simple software.
Military Operations Continue Using Claude Technology
The designation has yet to eliminate Claude from all military contexts. CNBC reported earlier that the AI system supported U.S. military operations in Iran.
On Thursday, Palantir CEO Alex Karp acknowledged that his company, among the largest defense contractors in America, maintains its Claude usage.
Michael said the agency cannot “just rip out” Anthropic’s technology overnight and confirmed a transition plan is underway.

