From CNBC.

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

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