New Delhi, March 6 -- The Pentagon said it has formally notified Anthropic PBC that it's determined the company and its products pose a risk to the US supply chain, according to a senior defense official, escalating a dispute over artificial intelligence safeguards.

"DOW officially informed Anthropic leadership the company and its products are deemed a supply chain risk, effective immediately," the official told Bloomberg News on Thursday, using an acronym for the Department of War, the name that Defense Secretary Pete Hegseth now favors for the Department of Defense.

While the defense official described the determination as "effective immediately," Anthropic's Claude AI tools are still being actively used by the US military in operatio...