Department of War Labels Anthropic Security Risk

President Trump initially canceled a Pentagon contract with Anthropic, setting a six-month wind-down, but Department of War official Pete Hegseth then declared Anthropic a supply-chain security risk, effectively barring government use. The move wiped about $150 billion from markets and prompted OpenAI to accept an alternative Pentagon contract, raising legal, market, and national-security concerns and forcing practitioners to reassess vendor risk and safeguards.