Palantir Technologies Inc.’s (NASDAQ:PLTR) flagship military AI platform is reportedly facing disruption after the Pentagon ordered contractors to halt commercial ties with Anthropic.
Pentagon Order Forces AI Supplier Shift
Palantir’s Maven Smart Systems — software used by the U.S. military for intelligence analysis and weapons targeting — relies on workflows built with Anthropic’s Claude AI model, Reuters reported on Wednesday, citing people familiar with the matter.
The development comes after President Donald Trump directed the government to stop working with Anthropic following a dispute between the AI startup and the Pentagon over safety restrictions tied to autonomous weapons and surveillance.
Defense Secretary Pete Hegseth said the change should take effect immediately, stating that contractors and partners doing business with the U.S. military must cease commercial activities with Anthropic.
Palantir May Need To Rebuild Parts Of Maven
The directive means Palantir needs to replace Claude with another AI model and rebuild sections of the Maven platform, the report noted, citing one source. It remains unclear how long the transition could take.
Anthropic, Palantir and Pentagon did not immediately respond to Benzinga’s request for comments.
Palantir holds Maven-related contracts with the Defense Department and other national security agencies that could exceed $1 billion in potential value.
Earlier this week, CEO Alex Karp appeared to reference the dispute during remarks at a defense technology conference in Washington, warning that Silicon Valley companies that undermine military partnerships risk pushing the U.S. toward nationalizing technology development.
Wider Impact On Defense AI Ecosystem
Anthropic’s removal from defense-related systems highlights the challenge facing the Pentagon and its contractors as AI tools become deeply embedded across government and private-sector platforms.
Defense company Lockheed Martin (NYSE:LMT) has already pledged to comply with the Pentagon’s order and remove Anthropic from its operations.
Palantir’s growing role in defense modernization has helped propel its market value to about $366 billion.
Meanwhile, U.S. Central Command reportedly used Anthropic’s Claude AI during airstrikes on Iran just hours after the ban was announced.
Price Action: Palantir shares closed at $153.11 on Wednesday after raising 4% during the regular session. In after-hours trading, it gained another 0.22% and reached $153.46, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, PLTR shows a negative price trend across short, medium and long-term periods, with a Growth ranking in the 78th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: PJ McDonnell on Shutterstock.com
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