Pentagon Shifts AI Strategy After Anthropic Contract Collapse

• Pentagon is developing alternatives to Anthropic's AI systems after talks broke down over usage terms.
• The Department of Defense is integrating multiple large language models into government-controlled environments.
• Anthropic's $200 million contract collapsed due to disagreements on preventing AI use for mass surveillance or autonomous weapons.
• Following the fallout, OpenAI and xAI (Grok AI) have entered agreements with the Pentagon.
• Defense Secretary Pete Hegseth labeled Anthropic a "supply-chain risk," a classification Anthropic is challenging in court.