Pentagon Halts Use of Anthropic's Claude After Blacklisting Firm as Supply Chain Risk, as Meta and Microsoft Also Cut Back Ahead of Anthropic's $2 Trillion IPO Push
Summary
The Pentagon has halted use of Anthropic's Claude after blacklisting the AI firm as a supply chain risk, and major customers are pulling back — Meta cut its Claude Code seats from 60,000 to about 30,000 while Microsoft trimmed over a third from its projected $1 billion annual spend — as Anthropic pushes toward an IPO at a $2 trillion valuation despite losing $42 billion in 2025.
Key Points
- The Pentagon has officially stopped using Anthropic's Claude, telling the BBC it has 'ceased the use of Anthropic products' after blacklisting the company as a supply chain risk earlier this year.
- Meta reportedly cut its Claude Code seats from 60,000 to roughly 30,000, citing its spring workforce reduction of about 8,000 employees and a push to use internal AI tools, while Microsoft has slashed by more than a third its estimate of spending at least $1 billion this year on Anthropic's tools.
- Anthropic is targeting an IPO at a $2 trillion valuation, possibly as soon as the week of Nov. 9, despite losing $42 billion in 2025 — with second-quarter revenue this year 14 times the year-ago quarter and plans to spend $518 billion on cloud and computing infrastructure in coming years.