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Following a highly publicised split, it appears unlikely that Anthropic and the Pentagon will resume their partnership anytime soon.

Instead, the Pentagon is now working on developing alternatives to Anthropic’s AI systems, according to remarks shared by Cameron Stanley, the Pentagon’s chief digital and AI officer, in a conversation with Bloomberg.

“The Department is actively pursuing multiple LLMs into the appropriate government-owned environments,” Stanley said. “Engineering work has begun on these LLMs, and we expect to have them available for operational use very soon.”

Anthropic’s $200 million agreement with the Department of Defence (DoD) unravelled in recent weeks after both sides were unable to reach common ground on how much unrestricted access the military would have to the company’s AI systems.

Anthropic had aimed to include provisions in the contract that would prevent its AI from being used for mass surveillance of U.S. citizens or for operating weapons that could act without human oversight. The Pentagon, however, did not agree to those conditions. In the aftermath, OpenAI stepped in to secure its own deal with the Pentagon. Additionally, the Department of Defence — referred to as the Department of War under the Trump administration — also agreed with Elon Musk’s xAI to integrate its Grok system into classified operations.

Given these developments, it is not surprising that the Pentagon is now moving toward phasing out Anthropic’s technology from its internal systems. While earlier reports hinted at a possible reconciliation between the two parties, the latest updates indicate that the government is preparing to move forward independently.

Moreover, Defence Secretary Pete Hegseth has classified Anthropic as a supply-chain risk, a label typically associated with foreign adversaries. This designation effectively prevents other companies working with the Pentagon from collaborating with Anthropic. The company is currently contesting this classification through legal channels.