The Pentagon has started building alternatives to Anthropic’s AI after talks between the two sides broke down over how the military can use the technology, and officials now expect new systems to enter operational use soon.
Bloomberg reports that Cameron Stanley, the Pentagon’s chief digital and AI officer, confirmed the shift, saying the department is “actively pursuing multiple LLMs into the appropriate government-owned environments,” and added that “engineering work has begun” with models expected to be ready “very soon.”
Anthropic Deal Failure
The split followed a disagreement over safeguards tied to military use of AI, where Anthropic pushed for limits that would block mass surveillance of Americans and prevent fully autonomous weapons, while the Pentagon refused to accept those conditions and moved ahead without compromise.
As a result, the Defense Department labeled Anthropic a supply-chain risk, a move that threatens its $200 million contract and restricts other defense partners from working with the company, while Anthropic has now challenged this designation in court.
At the same time, the Pentagon has already signed agreements with OpenAI and Elon Musk’s xAI to handle classified AI work, while Google plans to roll out its Gemini AI tools across millions of defense staff for routine tasks before expanding into secure environments.
Officials also confirmed that replacing Anthropic will take time, with Stanley noting that transitioning existing systems will take more than a month, but the department continues to push forward with what it calls an “AI-first” strategy focused on faster adoption and reduced internal barriers.
