Katherine Li, West Coast breaking news reporter at the Business Insider.

AI researchers rally in support for Anthropic as company says it risks losing $5 billion in Pentagon feud

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Employees at rival companies — including OpenAI — are rallying behind Anthropic as the startup warns its escalating dispute with the Pentagon could cost $5 billion in lost business.

More than 30 researchers from OpenAI and Google, including Jeff Dean, the chief scientist of Google DeepMind, filed a joint amicus brief on Monday supporting Anthropic in its legal battle with the government. The employees signed in a personal capacity and do not represent their companies’ official views.

Their filing argues that the Pentagon’s decision to label Anthropic a “supply-chain risk” could harm the broader US AI industry.

“If allowed to proceed, this effort to punish one of the leading US AI companies will undoubtedly have consequences for the United States’ industrial and scientific competitiveness in the field of artificial intelligence and beyond,” the employees wrote.

The dispute stems from a breakdown in negotiations between Anthropic and the Pentagon over guardrails around how its AI models could be used, particularly around mass domestic surveillance and autonomous lethal weapons.

Last month, Defense Secretary Pete Hegseth said that “no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic,” marking a dramatic expansion of the “supply chain risk” designation.

Anthropic has since sued the government in two courts, arguing the decision violates its First Amendment rights and unfairly retaliates against the company.

In court filings, Anthropic executives warned that the fallout is already hitting the company’s finances. Chief financial officer Krishna Rao wrote in a court statement that hundreds of millions of dollars in expected revenue tied to Pentagon-related work are at risk this year. If the government succeeds in discouraging companies from working with Anthropic more broadly, Rao added, the company could ultimately lose up to $5 billion in sales, which is roughly equivalent to its total revenue since commercializing its AI technology in 2023.

Anthropic’s chief commercial officer, Paul Smith, wrote in a separate court statement that the pressure from the government is causing business partners to take steps that “reflect deep distrust and a growing fear of associating with Anthropic.” Smith added that some customers have paused negotiations or demanded escape clauses, while others have canceled meetings entirely after the supply-chain designation.

The situation has also drawn criticism from industry leaders. OpenAI CEO Sam Altman, despite singing its own contract with the Pentagon after Anthropic’s fell apart, wrote on social media that enforcing the supply chain risk designation “would be very bad for our industry and our country.”

Major cloud providers like Amazon and Microsoft have said they will continue offering Anthropic’s Claude AI models to customers without ties to the Pentagon.

Anthropic is now seeking a temporary court order that would allow it to continue working with military contractors while the legal fight continues. The first hearing could take place in San Francisco as soon as Friday.

The Pentagon did not immediately respond to a request for comment outside normal business hours.




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Claude hits No. 1 on App Store as ChatGPT users defect in show of support for Anthropic’s Pentagon stance

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While OpenAI locks down Washington, Anthropic is locking down users and rocketing to the top of the App Store.

Anthropic has been sidelined in Washington following a public dispute with the Department of Defense over how its AI models would be deployed. President Donald Trump ordered federal agencies to phase out its technology.

Meanwhile, OpenAI has secured new ground, with CEO Sam Altman announcing in a Friday night post on X that it had reached an agreement with the Department of War to deploy AI models in its classified network.

OpenAI’s agreement has left some loyal ChatGPT users uneasy about OpenAI’s ambitions, prompting online debates about the ethical implications — and some saying they were defecting to its rival Claude.

As of 6:38 p.m. ET on Saturday, Claude ranked number one among the most downloaded productivity apps on Apple’s App Store, trailing ChatGPT.


A screencap of the app store

BI



Converts have taken to social media to share screenshots documenting their switch.

Pop musician Katy Perry wrote that she was “done” on X, alongside a screenshot of Claude’s pricing page, with a red heart around the $20-per-month “Pro” plan.

Another X user, Adam Lyttle, wrote “Made the switch,” alongside a screenshot of his email inbox with a receipt from Anthropic and cancellation confirmation from OpenAI.

On Reddit’s ChatGPT subreddit, dozens of users say they’ve deleted their accounts and are urging others to do the same.

“Cancel ChatGPT” has become a common refrain online, while some users have taken a more personal tone, saying Altman’s move “crossed the line.”

The agreement hasn’t polarized all AI users, however.

In one Reddit thread, several commenters said the news does not affect their choice of AI model, arguing that Anthropic’s work with Palantir raises similar concerns. In November 2024, Anthropic, Palantir, and Amazon Web Services struck an agreement to provide US intelligence and defense agencies access to Claude models.

After Secretary of War Pete Hegseth said he would designate Anthropic as a “supply chain risk to national security,” Anthropic said it would “challenge any supply chain risk designation in court.”

In his Friday post, Altman said the Department of War had agreed with two of OpenAI’s safety principles.

“Two of our most important safety principles are prohibitions on domestic mass surveillance and human responsibility for the use of force, including for autonomous weapon systems,” Altman wrote on X. “The DoW agrees with these principles, reflects them in law and policy, and we put them into our agreement.”

By Saturday afternoon, OpenAI published a more detailed description of its contract with the DoW, including the specific language it used surrounding the use of its models for surveillance and autonomous weapons.

On the topic of autonomous weapons, OpenAI said:

The AI System will not be used to independently direct autonomous weapons in any case where law, regulation, or Department policy requires human control, nor will it be used to assume other high-stakes decisions that require approval by a human decisionmaker under the same authorities.

On the topic of mass surveillance, OpenAI said:

The AI System shall not be used for unconstrained monitoring of U.S. persons’ private information as consistent with these authorities.

While some chatbot users suggested it’s all fair in business, war, and federal procurement, others suggested the Pentagon’s stance may have handed Anthropic a public relations win.

X user Tae Kim joked that Hegseth might need a new title: “Secretary Hegseth Chief of Claude Marketing.”




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kelly burch

My rare plants sell for five figures. The business helps me support my extended family, but I work about 100 hours a week.

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This as-told-to essay is based on a conversation with Harry Luu, owner of PlantZaddyTherapy. It has been edited for length and clarity.

I’ve always been a gardener and enjoyed being around plants. While I was in graduate school studying math, my collection of houseplants grew. There’s an attention to detail and a hyperfocus that I found in both mathematics and plants, so my hobby complemented my academic career.

During the pandemic, my interest in rare plants blew up. I started getting a bigger collection and trading up for more valuable plants.

Eventually, my hobby transformed into a business. I finished my graduate degree and started teaching math in California, but three years ago, I left academia to sell plants full-time.

My academic career was a safety net for my family of 8

I grew up in Vietnam, and I’m the embodiment of the American dream for my family. They put all their eggs in my basket, which allowed me to come to America and study. Now, I feel it’s fair to return their investment. I support not only myself and my husband, but also my parents, my brother, my sister-in-law, my niece, and my nephew.

Leaving my job while supporting a family of eight in California might seem risky, but it was calculated. I had reached the point where I saw the potential for financial freedom from investments I had made during grad school that had very good returns. I had years of data on plant sales, and also knew I could return to academia if needed, so I had a safety net.

I price based on rarity and desirability, without going too high

I was already connected to the rare plant community, so selling increasingly expensive plants felt like a natural progression. I grew my platform on Palmstreet, an online marketplace.

This year, I had two record-breaking sales in one day. I sold a $16,000 plant (an Anthurium Variegated Forgetii x Heinz, one of only two in the world), then a $26,000 plant (the only specimen of the True Variegated Lux Albo Mother Plant).


Man holding rare plant

A $16,000 plant sold on Palmstreet by Harry Luu

Courtesy of Palmstreet



I’m a math person, so I use a formula to price. I calculate rarity and desirability and compare them with price data from the previous three years. These plants were both very rare and highly desirable, which drove prices up. However, I didn’t want to price them too high, because I’m thinking about the long-term viability for my brand: people have to be able to purchase what I’m selling. Given how rare the plants were, their five-figure prices weren’t too big a splash.

I want to be able to connect with the community more

Despite those big numbers, the business’s income fluctuates dramatically. My best single week was over $200,000 in sales, but other weeks I might have no sales. The market is seasonal, and winter is slow. I’ve had to adapt to not having a steady, reliable income.

The money comes and goes, but the work never stops. Right now, I spend about 100 hours a week on the business. We have plants in our home, and also a large greenhouse on our property. My brother does some of the maintenance care for the plants, but all the breeding decisions are made by me.

I’m on the cusp of the company being able to sustain itself without me working so much. I look forward to that — when I can step back from the business side and focus more on the joy of growing. I would like to share my knowledge about rare plants and take the plants on the road to connect with my community more, since that’s what got me hooked on growing in the first place.




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