Defense Secretary Pete Hegseth’s decision to label Anthropic a “Supply-Chain Risk to National Security” on Friday resulted in more questions than answers. “It’s all very puzzling,” Herbert Lin, a senior research scholar at Stanford University’s Center for International Security and Cooperation, told CNBC in an interview. Anthropic is the only American company ever to be publicly named a supply chain risk, as the designation has traditionally been used against foreign adversaries. But the company hasn’t received any official declaration beyond social media posts. A formal designation will require defense vendors and contractors to certify that they don’t use Anthropic’s models in their work with the Pentagon.

Full report : Talks between the two sides crumbled after they couldn’t agree on how Anthropic’s AI models could be used by the Department of Defense.