The US military is still using Claude — but defense-tech clients are fleeing

Anthropic finds itself in a challenging position as its AI technology continues to be utilized in the ongoing U.S.-Iran conflict while simultaneously losing traction within the defense industry. The company is navigating the fallout from a contentious relationship with the Department of Defense (DoD), which has led to a confusing landscape marked by contradictory directives from the U.S. government. Recently, an order from former President Trump mandated that civilian agencies cease using Anthropic's products. However, the DoD was granted a six-month period to phase out its operations with the company. This complicated transition was abruptly overshadowed by a surprise military strike on Tehran, which occurred just a day after the directive. As U.S. forces engage in aerial operations, Anthropic's models are still being employed for critical targeting decisions. Despite Secretary of Defense Pete Hegseth's commitment to designate Anthropic as a supply-chain risk, no formal measures have been implemented to restrict its use. As reported by The Washington Post, Anthropic’s systems are currently integrated with Palantir’s Maven system, assisting Pentagon officials by suggesting numerous targets, providing precise coordinates, and prioritizing these targets based on their significance. Conversely, many defense industry players are actively replacing Anthropic's models with alternatives. Reports indicate that major contractors, including Lockheed Martin, have begun the transition away from Anthropic's offerings. A managing partner from J2 Ventures informed CNBC that ten of his portfolio companies have halted their use of Claude for defense applications and are pursuing replacements. The pivotal question remains whether Hegseth will follow through with the proposed supply-chain risk designation, which could spark a contentious legal battle. For now, Anthropic, one of the leading AI labs, faces the prospect of being sidelined from military applications, even as its technology is deployed in an active war zone.