Pentagon's Move Away From Anthropic Sparks Shift in Orders to AI Startups

The Pentagon began seeking alternative AI suppliers after the U.S. Department of Defense designated Anthropic's products a supply-chain risk. The move is reshaping defense technology procurement and reflects the U.S. military's push to reduce reliance on a single large-model provider while building a secure, diversified AI supply chain.

The resulting shift in orders has now extended to startups including Smack Technologies and EdgeRunner AI, with both companies receiving more orders and sales inquiries. The U.S. military is also accelerating security certifications and streamlining procurement. As of July 20, 2026, reports had not disclosed the value of the orders or the formal date on which Anthropic's products were dropped.