The Pentagon told the BBC on Monday that it “has ceased the use of Anthropic products,” after a year-long dispute over the AI company’s risk designation.

Defence Secretary Pete Hegseth labelled Anthropic a supply-chain risk in February and gave it until late August to resolve the issue. Anthropic sued, but a federal appeals court upheld the designation on September 25.

People familiar with the matter said Claude models were still being used inside military systems as recently as last week, including for Iran operations. The models are embedded in Palantir’s Maven targeting platform.

The shutdown followed a separate clash over Anthropic’s terms of use. The company had refused to guarantee military and surveillance uses without safeguards, raising concerns about its models’ role in warfare.

The dispute began when Anthropic’s terms of use restricted certain military applications. Hegseth argued the restrictions put troops at risk, while the company cited safety concerns. The appeals court ruling in September sided with the Pentagon. Other AI vendors continue to supply the military, and the department says it is diversifying its AI providers.