Defense Secretary Pete Hegseth is "close" to cutting business ties with Anthropic and designating the AI company a "supply chain risk" — meaning anyone who wants to do business with the U.S. military has to cut ties with the company, a senior Pentagon official told Axios.
- The senior official said: "It will be an enormous pain in the ass to disentangle, and we are going to make sure they pay a price for forcing our hand like this."
Why it matters: That kind of penalty is usually reserved for foreign adversaries.
