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In 2026, the United States Department of War officially labeled the AI company Anthropic as a supply chain risk, marking the first time an American firm received this designation. This federal action followed a dispute over contractual restrictions that prevented the military from using the Claude AI model for autonomous weaponry and mass surveillance. While the Trump administration ordered a total phase-out of the technology, Anthropic filed lawsuits to challenge the move, leading to conflicting results in federal appeals courts. Reports suggest the conflict was intensified by Senate testimony claiming an advanced model successfully breached NSA classified systems within hours. Consequently, government contractors must now navigate complex compliance mandates to remove the prohibited AI from their defense-related systems.