Why Anthropic Faces A 'Lose-Lose' Battle As It Faces Off With The Pentagon

Investors are saying Anthropic’s fight with the Pentagon using its technology for classified missions is a "lose-lose" battle as they see downsides in either outcome in its Friday deadline. Most are concerned about possible designations for Anthropic as a “supply chain risk,” which could have a chilling effect on its all-important enterprise market. Some are privately shrugging off the near-term impact, pointing to $14 billion in revenue and growth rate, and defense as a small portion of that — Anthropic has a $200 million government contract. But if Anthropic gets on the wrong side of the Pentagon, it could dampen long-term growth at a time when this company is looking to go public, and OpenAI nips at its heels to win over Fortune 500s. CNBC's Kate Rooney has the story. Produced by: Kate Rooney, Jeffrey Kopp Edited by: Andrew Evers Senior Director of Video: Jeniece Pettitt Additional Footage: Getty Images » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Watch CNBC on the go with CNBC+: https://www.cnbc.com/WatchCNBCPlus About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to get ahead at work with AI? Sign up for CNBC's new online course, Beyond the Basics: How to Use AI to Supercharge Your Work. Learn advanced AI skills like building custom GPTs and using AI agents to boost your productivity today. Sign up today: https://cnb.cx/4qKBe6H Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC #CNBC Why Anthropic Faces A 'Lose-Lose' Battle As It Faces Off With The Pentagon