The public clash between the Pentagon and Anthropic is forcing the federal government to confront just how deeply embedded AI has become in Washington — from the top of the chain in agencies down to private contractors.
Like most AI firms, Anthropic's presence in government work runs deeper than just contracts. Even as tech firms compete, they also routinely do business with each other, and industry observers warn that entanglement complicates efforts to scrub the technology from all government systems.
"There are multiple reasons why these apparent competitors might have an interest in mutually supporting each other, because it is part of one big ecosystem," said Sarah Kreps, the director of the Tech Policy Institute in the Cornell Brooks School of Public Policy.
The contract at the heart of the Pentagon clash reflects the interdependent tech ecosystem the Trump administration finds itself trying to unwind by removing Anthropic.
Nearly two years ago, Anthropic struck a partnership with longtime government contractor Palantir to host its AI models in government agencies, allowing the AI firm to skip the standard, lengthy security authorization process, known as FedRAMP.
Palantir also has Anthropic integrated into its own systems, which are used across the government. CEO Alex Karp told CNBC earlier this month that the company plans to add other models amid the dispute, but that it is still using Anthropic.
Further, Anthropic has emerged as a standout AI tool for its abilities, including Claude Code, a coding tool that helps people or companies build features, fix bugs and automate tasks.
"Claude Code, in tech circles, [is] all that people have been talking about for months now," said Michael Boyce, former director of the Department of Homeland Security's AI Corps program. "It's an amazing tool. While there are other strong competitors in the space, it continues to be field defining."
Read more in a full report at TheHill.com
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