Tensions between the White House and Anthropic appear to be easing as the AI company moves toward an initial public offering, but Reuters reported that the firm continues to be viewed as a potential national security risk.
Earlier this week it was revealed that Anthropic had confidentially filed paperwork to pursue an initial public offering, marking one of the most closely watched public market debuts in the artificial intelligence sector.
Despite commercial success, Anthropic was put on a national security watchlist after it refused to allow the U.S. military to use its AI models for domestic surveillance and fully autonomous weapons systems. In March, the Defense Department designated Anthropic a “supply-chain risk,” marking the first time a U.S. company had received a label typically reserved for firms linked to adversarial nations. Currently, Anthropic is challenging the supply-chain risk designation in court.
READ: Anthropic files for IPO amid AI race (June 1, 2026)
According to Reuters, the relationship has improved after Anthropic CEO Dario Amodei visited the White House in mid-April to discuss working together following the dispute.
However, Defense Secretary Pete Hegseth has denied Anthropic’s request to reconsider the AI startup’s designation as a national security risk. The move clears the way for a three-judge panel to decide the novel questions raised in Anthropic’s lawsuit challenging the Defense Department’s designation and the scope of its powers over domestic companies.
Judges raised concerns last month that the courts may have to wait for the Pentagon to handle Anthropic’s reconsideration request before they can take up the case.
Franklin Turner, an attorney specializing in government contracts said that the Department of Defense is still “vigorously” defending itself against Anthropic’s lawsuit, adding that any broader damage to the company’s business is unlikely to ease until the department’s dispute with the company is resolved.
“Anytime the government signals that it’s washing its hands of a company, that’s a major problem for that company,” Turner said.
Notably, the White House had invited Amodei to Trump’s planned May 21 signing of an executive order on artificial intelligence, according to two sources familiar with the matter, though the event was later canceled because of Trump’s disapproval of some of the provisions. The order was later signed on Tuesday. Anthropic said in an X post that it looked forward to “collaborating” with the White House on implementing the order.
READ: Anthropic nears $1 trillion valuation ahead of possible IPO (May 29, 2026)
Anthropic has held discussions with National Cyber Director Sean Cairncross about Mythos, its most advanced AI system, and how to protect critical infrastructure from AI-enabled cyberattacks, according to Reuters that cited people familiar with the matter. The company has warned that Mythos could supercharge such attacks.
Anthropic employees met with U.S. Treasury Secretary Scott Bessent this spring to talk about Mythos and potential presidential actions on AI, according to a U.S. official. The discussions reportedly helped Trump’s team develop the AI executive order.
Stronger ties could help bolster investor confidence in the short term, said Harrison Rolfes, a senior research analyst at PitchBook who covers AI companies. He also called the dispute a “near-term” bruise.