The U.S. Department of Defense has officially designated Anthropic as a national security supply chain risk, following disputes over the use of its AI technology. The decision, announced by Secretary of Defense Pete Hegseth, prohibits military contractors and partners from engaging with Anthropic. The conflict arose as Anthropic resisted demands for unrestricted access to its AI systems, particularly concerning their use in monitoring U.S. citizens and integration with autonomous weapons. In response to the deadlock, OpenAI and Elon Musk's xAI have signed agreements with the Department of Defense, allowing the use of their AI systems for lawful purposes. OpenAI has since revised its agreement to prevent the technology from being used for mass surveillance of Americans, following public criticism.