A high-stakes dispute over military use of artificial intelligence erupted into public view this week as Defence Secretary Pete Hegseth brusquely terminated the Pentagon's work with Anthropic and other government agencies, using a law designed to counter foreign supply chain threats to slap a scarlet letter on a US company. President Donald Trump and Hegseth accused rising AI star Anthropic of endangering national security after its CEO Dario Amodei refused to back down over concerns the company's products could be used for mass surveillance or autonomous armed drones. The San Francisco-based company has vowed to sue over Hegseth's call to designate Anthropic a supply chain risk, an unprecedented move to apply a law intended to counter foreign threats to a US company. Anthropic said it would challenge what it called a legally unsound action "never before publicly applied to an American company." The looming legal battle could have huge implications on the balance of power in Big Te