Apple's trade group, the Information Technology Industry Council (ITI), has formally expressed concern to the Pentagon over the Defense Department's designation of AI firm Anthropic as a 'Supply-Chain Risk to National Security.' This move, announced by Secretary of Defense Pete Hegseth last Friday, bars any US military contractor from doing business with Anthropic. The ITI's letter, dated Wednesday and seen by Reuters, argues this designation, previously unheard of for domestic companies, threatens the government's access to top-tier technology and sets a dangerous precedent. The decision stems from a $200 million contract dispute where Anthropic refused clauses related to domestic surveillance and autonomous weapons.

The ITI, whose members include Apple, Nvidia, and Amazon, contends such high-stakes disputes should be resolved through established procurement channels, not emergency designations. The Pentagon has stated it will respond directly to the ITI's concerns.