Pentagon: Anthropic Still Blacklisted, but Mythos Is a ‘Separate National Security Issue’

Department of Defense Chief Technology Officer (CTO) Emil Michael told CNBC on Friday that Anthropic remains designated as a supply chain risk, but the company’s Mythos AI model — which possesses advanced cyber capabilities — represents a “separate national security moment” that requires distinct handling.

Supply Chain Risk Designation Remains

Earlier this year, a heated clash between the Pentagon and Anthropic spilled into public view. The Department of Defense declared Anthropic a supply chain risk, meaning its technology purportedly threatens U.S. national security, after the two sides failed to agree on how Anthropic’s models could be used by the military.

As a result of the supply chain risk designation, defense contractors must certify that they do not use Anthropic’s Claude models in their work with the military. Anthropic sued the Trump administration in March in an attempt to reverse the Pentagon’s blacklisting.

Mythos Model’s Cyber Capabilities

“I think the Mythos issue that’s being dealt with government-wide, not just at Department War, is a separate national security moment where we have to make sure that our networks are hardened up, because that model has capabilities that are particular to finding cyber vulnerabilities and patching them,” Michael told CNBC’s “Squawk Box” on Friday.

It is not clear how the DoD could use Anthropic’s Mythos model without violating the supply chain risk designation. Michael said the DoD still wants guardrails, and that those “are negotiable based on what they are with all the companies, and they have different views on that.”

Seven AI Companies Cleared for Classified Networks

On the same day as Michael’s comments, the DoD announced it has entered into agreements with seven AI companies that will deploy their technology across the agency’s classified networks for “lawful operational use.” The companies include Google and others.

The agreements signal the Pentagon’s multi-vendor AI strategy, aimed at reducing reliance on any single AI provider while ensuring the military can access cutting-edge capabilities.

Market Context

Notably, Anthropic is currently seeking approximately $50 billion in private funding at a valuation of around $900 billion, potentially its last private round before a 2026 IPO. The Pentagon’s blacklist status could impact its defense contracting business, but its position in the commercial market remains strong — with annual revenue run rate exceeding $30 billion.

Source: CNBC