"The vast majority of our customers are unaffected by a supply chain risk designation. It plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts."
"Our lawyers have studied the designation and have concluded that Anthropic products, including Claude, can remain available to our customers - other than the Department of War - through platforms such as M365, GitHub, and Microsoft's AI Foundry and that we can continue to work with Anthropic on non-defense related projects."
"We do not believe this action is legally sound, and we see no choice but to challenge it in court."
Anthropic was designated a 'supply chain risk' by the Defense Department after refusing to accept contract language permitting unrestricted military use of its Claude chatbot. Defense Secretary Pete Hegseth initially threatened a complete ban on all contractors doing business with the military from working with Anthropic, while President Trump ordered all federal agencies to cease using Anthropic's technology. However, the actual March 4 designation proved significantly narrower in scope. CEO Dario Amodei clarified that the restriction applies only to Claude's direct use in Department of Defense contracts, not to all commercial activity by defense contractors. Microsoft confirmed it can continue offering Claude through its platforms to non-military customers. Despite the milder outcome, Amodei announced plans to challenge the designation in court.
Read at Breaking Defense
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