Anthropic has faced strong pushback from the tech industry after it was designated a “supply chain risk” in a dispute with the U.S. government. TechCrunch reported on March 2 that hundreds of tech workers signed an open letter urging the Defense Department to withdraw the “supply chain risk” designation for Anthropic.

Major technology and venture capital firms including OpenAI, Slack, IBM and Salesforce Ventures took part in signing the letter.

Anthropic opposes AI technology being used for mass surveillance in the United States or weapons systems without human involvement and refused negotiations with the Defense Department. President Donald Trump ordered a ban on the use of Anthropic AI technology, and the Defense Department retaliated by designating Anthropic a “supply chain risk.” If the measure is formalised, all companies that do business with the Defense Department must stop cooperating with Anthropic.

The industry expressed concern that the move signals excessive government intervention in AI companies. OpenAI researcher Boaz Barak (보아즈 바라크) stressed that “it sets a dangerous precedent for AI to be used for mass government surveillance,” adding that “the AI industry must strengthen self-regulation to prevent government abuse.” OpenAI, meanwhile, signed an AI technology agreement with the Defense Department shortly after Trump criticised Anthropic.