• by Laurie Sullivan , March 6, 2026

Google said it will keep working with Anthropic on non-defense projects after the Department of Defense (DoD) blacklisted the company from federal contracts.

The company made the announcement one day after Microsoft told users that Anthropic’s technology will still be available for use outside of the defense industry.

Google and Anthropic have a multibillion-dollar partnership focused on cloud infrastructure, financial investments and product integrations.

Google reportedly had invested approximately $3 billion in Anthropic as of early 2026.

The company's decision to continue its partnership with Anthropic for non-defense projects is a critical signal for advertisers. It stabilizes the AI infrastructure used in marketing and advertising despite the Defense Departments designation.

The DoD, which also officially goes by the Department of War, designated Anthropic PBC a "supply-chain risk to national security," Defense Secretary Pete Hegseth announced. The initial announcement was made in writing via social media on X, though it was later followed by formal written notification to the Anthropic. 

Hegseth said that contractors and suppliers connected to the U.S. military are barred from working with the company.

He described the company as "fundamentally incompatible with American principles" and said its relationship with the U.S. government has been "permanently altered."

Anthropic was designated a "supply chain risk to national security" in late February 2026 after a high-stakes dispute over AI safeguards.

“We understand that the Determination does not preclude us from working with Anthropic on non-defense related projects, and their products remain available through our platforms, like Google Cloud,” a Google spokesperson told CNBC on Friday. 

Microsoft, which has committed to invest up to $5 billion in Anthropic, stated that following a legal review of the Pentagon's "supply chain risk" designation, its products and services, including those with Anthropic's Claude, would remain accessible to non-defense customers.