The US Secretary of War, Pete Hegseth, has directed the Department of War to designate Anthropic, an AI company, as a supply chain risk due to disagreements over the use of their AI model, Claude, in fully autonomous weapons and mass domestic surveillance. Anthropic has stated that they will challenge this designation in court, citing that it would be an unprecedented action and set a dangerous precedent for American companies. The company has also clarified that this designation would not affect individual customers or commercial contracts, but only Department of War contracts. The situation has sparked concerns about government overreach and the use of AI in military and surveillance applications.