Palantir is still using Anthropic's Claude as Pentagon blacklist plays out, CEO Karp says

Neutral (-0.2)Impact: High

Published on March 12, 2026 (2 hours ago) · By Vibe Trader

Palantir CEO Alex Karp confirmed that the company continues to use Anthropic's Claude large language model in its tools, despite Anthropic being designated a supply-chain risk by the Pentagon last week [1]. The Defense Department is still utilizing Claude for military operations in Iran, even as the dispute unfolds [1]. Karp stated that Palantir plans to integrate other large language models in the future, indicating a shift in response to the Pentagon's designation: 'Our products are integrated with Anthropic, and in the future, it will probably be integrated with other large language models' [1].

Anthropic responded to the Pentagon's designation by suing the Trump administration on Monday, seeking to reverse the supply chain risk label and requesting a stay on the Department of Defense action [1]. This marks the first public comment from Palantir since the Pentagon's decision. Previously, Anthropic and Palantir partnered with Amazon Web Services to support the Department of Defense in 2024 [1]. Other defense technology companies, including Lockheed Martin, have instructed employees to stop using Claude as the situation develops [1].

Defense Department Chief Technology Officer Emil Michael explained that transitioning away from Anthropic's models will take time, as these systems are deeply embedded: 'You can't just rip out a system that's deeply embedded overnight,' Michael told CNBC [1]. President Donald Trump, in a Truth Social post at the end of February, criticized Anthropic's staff and announced a six-month period for federal agencies to phase out the company's products [1]. However, an internal Pentagon memo from Chief Information Officer Kirsten Davies indicated that use of Anthropic's tools may continue beyond the six-month period if deemed critical to national security, with exemptions considered for 'mission-critical activities' where 'no viable alternative exists' [1]. Michael reiterated that exceptions would be made for sensitive operations to avoid putting current operations at risk, but otherwise, the six-month phase-out remains the plan [1].

CONCLUSION

The Pentagon's designation of Anthropic as a supply-chain risk has triggered a high-impact transition for defense technology companies, including Palantir and its partners. While a six-month phase-out is planned, ongoing use of Anthropic's Claude model for mission-critical operations and potential exemptions signal continued uncertainty. The market is likely to closely monitor Palantir's integration of alternative models and the outcome of Anthropic's legal challenge.

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