Anthropic Faces Potential $5B Hit as Pentagon Dispute Intensifies

Anthropic warned that its feud with the Pentagon could cost up to $5 billion in revenue as negotiations over guardrails for AI use stall Pentagon contracts. OpenAI and Google researchers filed an amicus brief supporting Anthropic, arguing the Pentagon’s “supply-chain risk” designation could hurt the broader US AI industry. Anthropic is seeking a temporary court order to continue Pentagon-related work while lawsuits challenge the designation and its First Amendment claims. Some customers have paused talks or demanded escape clauses, but major cloud providers will continue offering Claude without Pentagon ties; a San Francisco hearing could happen soon.