Anthropic, the maker of Claude, is caught in a federal tug-of-war. While Commerce Secretary Howard Lutnick praised the company's alignment with the government, the Pentagon's Emil Michael reiterated its supply chain risk designation.
TL;DR
- Anthropic faces conflicting federal stances on its supply chain risk status.
- The Pentagon maintains Anthropic as a supply chain risk, while other agencies adopt its tools.
- The mixed signals could impact Anthropic's business and market perception.
What happened
On Wednesday, Commerce Secretary Howard Lutnick told Bloomberg that Anthropic and the government were 'in tune together' after months of tensions. This came after Lutnick's discussion with Anthropic co-founder Tom Brown at the G20 Innovation Ministerial.
However, on Thursday, Pentagon research and engineering leader Emil Michael posted on social media that Anthropic 'is still a designated supply chain risk' at the department and within the defense industrial base.
The Department of Energy's top IT official recently told FedScoop that 'everybody wants' Claude, and the agency purchased it initially in 2024. Additionally, the Federal Communications Commission signed delivery orders with Carahsoft for Claude in May and July.
Why it matters
The mixed signals from federal officials could be damaging for Anthropic, as market participants may hesitate to do business with the company for fear of becoming the administration's next target, according to Simona Grossi, a professor at Loyola Marymount University's Loyola Law School.
Anthropic is currently challenging the supply chain risk designation in the U.S. Court of Appeals for the D.C. Circuit. The company argues that a recent district court ruling on the supply chain risk designation is 'persuasive authority' for the challenges in the circuit.
The open questions include Anthropic's challenge under the procurement statute and accompanying constitutional challenges. The government's appeal of the district court's preliminary injunction is still pending in the U.S. Court of Appeals for the Ninth Circuit but is on hold while the circuit case plays out.
Key facts
- Commerce Secretary Howard Lutnick praised Anthropic's alignment with the government on Wednesday.
- Pentagon's Emil Michael reiterated Anthropic's supply chain risk status on Thursday.
- The Department of Energy purchased Claude initially in 2024.
- The Federal Communications Commission signed delivery orders with Carahsoft for Claude in May and July.
- Anthropic is challenging the supply chain risk designation in the U.S. Court of Appeals for the D.C. Circuit.
- The government's appeal of the district court's preliminary injunction is pending in the U.S. Court of Appeals for the Ninth Circuit.
Context
Anthropic's legal battle with the Trump administration underscores the differing positions on the Claude maker within the federal government. While some agencies adopt Anthropic's tools, others maintain it as a supply chain risk.
The mixed signals from federal officials could impact Anthropic's business and market perception, as market participants may hesitate to do business with the company for fear of becoming the administration's next target.
The open questions in the circuit case include Anthropic's challenge under the procurement statute and accompanying constitutional challenges. The government's appeal of the district court's preliminary injunction is still pending in the U.S. Court of Appeals for the Ninth Circuit but is on hold while the circuit case plays out.
