Anthropic Claims Pentagon Feud Could Cost It Billions

Executives at the AI startup say companies paused deal talks after the Trump administration labeled it a supply-chain risk, warning the fallout could cause a major revenue hit.

Anthropic executives allege that current customers and prospective ones have been demanding new terms and even backing out of negotiations since the US Department of Defense labeled the AI startup a supply-chain risk late last month, according to court papers that also revealed new financial details about the company.

Hundreds of millions of dollars in expected revenue this year from work tied to the Pentagon is already at risk for Anthropic, the company’s chief financial officer, Krishna Rao, wrote in a court filing on Monday. But if the government has its way and pressures a broad range of companies from doing business with the AI startup, regardless of any ties to the military, Anthropic could ultimately lose billions of dollars in ...